What is the difference between a credit card and a charge card?

The difference between a credit card and a charge card is quite distinct. Credit cards are a form of revolving debt that allow customers to borrow money for purchases. Customers pay a minimum payment each month, as well as interest on any unpaid balance. Charge cards, on the other hand, are not forms of debt. Instead, customers must pay off the entire balance each month to avoid penalty or interest charges. However, charge cards often offer a number of rewards, such as cash back or airline miles, which credit cards typically do not. Charge cards are not as widely available as credit cards, and may come with annual fees or minimum spending requirements. Many people choose to use both types of cards to maximize the benefits, splitting purchases between the two cards and paying off the charge card each month. In Tennessee, credit card law is regulated by the Office of the Comptroller of the Currency. This office is responsible for making sure that all credit card holders receive fair and legal treatment. Credit card law includes regulations for fees, interest rates, and consumer protection, including the enforcement of the Truth in Lending Act.

Related FAQs

What is a credit card annual fee?
What is a minimum payment on a credit card?
What is a credit report?
How do I choose a credit card company?
What is a travel rewards credit card?
What are the late payment fees for credit cards?
What is a fraud alert?
Do I need to provide personal information to get a credit card?
What should I do if I spot an error on my credit report?
Can I increase my credit limit?

What is the difference between a credit card and a charge card?

Related FAQs

Related Blog Posts