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

The primary difference between a credit card and a charge card is how the cardholder pays for their purchases. With a credit card, the cardholder is able to borrow money from the issuing bank or credit card company up to a certain limit and pay back the balance at a later date. This credit limit is usually determined by the cardholder’s credit score. With a charge card, the cardholder must pay the full balance of their purchase at the end of each billing cycle. Credit card companies typically charge interest on unpaid balances and can also charge other fees, such as annual fees and late payment fees. Charge cards will not charge interest, however they may charge an annual fee and other fees. Credit cards also often come with a variety of rewards programs such as cash back or travel points, while charge cards typically do not. In the state of Washington, it is important to understand the laws governing credit cards and charge cards. Firstly, you must be 18 years or older to get a credit card in the state. Additionally, cardholders under the age of 21 must have a cosigner unless they can prove independent income or have their parent or guardian’s permission. Finally, the state of Washington limits the fees that financial institutions are able to charge for credit and charge cards.

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

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