Whats The Difference between Charge Card and Credit Card?
Often we hear charge cards and credit cards, which make us wonder. Is there a difference between the two? Well, we can try to understand the differences between them as we continue with this article. Credit cards have spending limit and require you to pay at least a minimum amount of your purchase plus the interest of the remaining unpaid amount. Interest will continue to be applied if you cannot pay again the full amount of your purchase on the succeeding statement due date. However the advantage is that you can spread the payment of your purchase for a certain period.
Charge card is different from credit card like those found in Kohl’s ads of 15% off with kohls charge card. It does not offer a credit account or a limit on your spending and it does not bear interest. Whatever you spend you need to pay it in full at the statement due date. If not you cannot use your charge card anymore. In cases of delayed payment you will be penalized and this will reflect in your record. It also comes with a yearly fee. Not everyone will be eligible to this since there is a minimum income requirement. The good thing about this is the perks given like the 15% off with kohls charge card, which bring $15 savings for every $100.