Charge Card Vs. Credit Card

Most of the users get confused in comprehending the charge card and they end up comparing it with the Credit Card only. However, Charge Cards are entirely different from Credit Cards and have some pros, as well as cons over credit cards.

Charge Cards are entirely different than credit cards in several ways, and literally, it is very easy to get a credit card, but not a charge card. Even though there are some similarities in both the electronic payment cards, the following points can distinguish them;

Credit Cards Charge Cards
Preset Spending Limit Fixed spending limits and varies as per credit score. No spending limits.
Interest Rates Decided interest rates; varies as per cards. No interest rates.
Payment Methods Can pay in EMIs (monthly installments). The full balance must be paid in one payment, usually monthly.
Late payment fees Yes, there will be late payment fees. Yes, late payment fees are applicable.
Yearly/Annual Fees Yes, there is a fixed yearly or even monthly charges. Yes, yearly charges are there.
Credit Score Late payments will affect your credit score and it might be difficult to get loans in the future. No, it won’t affect your credit score.
  1. Splendid Limit- Credit Cards have certain pre-fixed limits over the spending while charge cards come without the same. However, it doesn’t mean one can spend how much ever wishes to; there are several criteria through which card issuers decide the same.
  2. Payments- Mostly credit card issuers facilitate their users with an option to pay through Equated Monthly Installments (EMIs) and one can choose to pay the balance in convenient ways. Whereas in Charge Cards, there are no options for installments and one has to pay the full balance monthly only.
  3. Interest Rates- Usually a credit card comes with some interest rate on your spendings according to the amount you spent. However, no interest rates are there when you go with a Charge Card.

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