Credit Cards vs Charge Cards

What sets credit cards apart from charge cards is the option to carry a balance from one billing cycle to the next. With a standard charge card, you are obligated to pay off your entire sum each month, which is not an option. You can make purchases immediately but pay for them over time, with interest, using a credit card.

Charge cards are similar to credit cards in appearance and operation. However, they are intended for immediate repayment. Moreover, instead of a fixed credit limit, purchases are authorized after taking into account the cardholder’s spending habits, payment history, and other credit-related factors.

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