Credit Card Types - Charge Card

There are multiple different types of credit cards available these days. This is great news for you as it allows you to pick the type of card that best fits your needs.

Charge cards are one type of credit card, and even though you may hear the term charge card used interchangeable with the word credit card they are not exactly the same. Charge card balances have to be paid in full, typically once a month and they do not have a credit limit. American Express for example is a charge card.

In general the charge cards do not charge finance charges nor is there a minimum payment per month, as you have to pay the balance in full. If you are late in paying the payment late fees can be assessed along with possible charge restrictions and your card may even be canceled.

If you would rather have a revolving credit with a minimum monthly payment a standard or premium credit card may offer your those options.