Charge Cards - What They Are and Why You Might Need One Instead of a Credit

Card
Should I Get a Charge Card?
Many people don't know about charge cards and they mistake them for a credit card, or
vice-versa. But there is a big difference between the two types of cards and it is important
to understand the differences so that you can decide which is right for you. After all, we
have a ton of choices available to us in the personal finance marketplace. You want to be
working with the products that are right for you. For more info about Buy MTN Irancell
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What's the Difference: Charge Card vs Credit Card
A charge card is slightly different from what people know of today as a credit card. This type
of card doesn't have a revolving credit line, like a traditional credit card. It's simply a short
term loan which can be tapped by using the card. That means you have to pay off your
balance at the end of the month in full. Unlike a credit card, which allows you to pay of your
balance over time, charging you interest. These cards have been around a long time, and
the most common seller is American Express. They offer several different varieties. These
things originated in the 60s or 70s with the old Diner's Club. Remember that? Telly Savalis?
Who loves you, baby? Okay, maybe you don't remember. But just know that these things
have been around a while and many people swear by them.
Who Uses Charge Cards?
People who need a line of credit but don't need that credit to extend beyond a month are
most likely to use charge cards. It's true that there are a whole sector of people out there
who pay their balances off each month. They understand that paying high interest month
after month will eventually break their budget. Some people don't want the burden of
dealing with high interest debt. Yet, those same people like the protection and credit history
building aspects that charge cards offer. Plus, they have reward systems just like credit
cards. So you can get reward points for your monthly spending.
Disadvantages: Are Charge Cards Bad for Credit?
These cards are not without their disadvantages. First, they don't improve your credit
utilization ratio: amount of credit available vs amount of credit used. Since you do not have
an available balance, you don't get the improvement to your credit utilization. This affects
your overall credit score. But not your history. Secondly, if you do not pay off your balance
at the end of the month, you will get severe penalties and interest charges. And you will
quickly get your credit line shut down until you pay it off. For people who need more
flexibility in when they pay, this type of card is a bad idea.
The Real Benefits of Using a Charge Card
A charge card gives you purchase protection that you can't get from a debit card, or from
cash. This means that every time you make a purchase, whether it is online or off, you are
protected. Protection gives you confidence that you will get what you are paying for. If you
don't, the card company will refund you the money. They also help you build credit history,
which cash and debit cards do not. As I said above credit history (making payments) is just
one aspect of your overall credit score. By making consistent monthly on-time payments on
your charge card, you will be showing the credit bureaus that you are to be trusted.
They also come with reward systems that beat using a debit card. Some cards will give you
1% or even 2% points for every dollar you spend on the card. This can be a great way to
save an extra 2% on your monthly spending. Lastly, you run less of a risk of racking up a
bunch of debt since your monthly balance cannot be carried forward. This is the main

reason people turn to these cards. They sort of force you to behave properly and only spend
what you earn, which is the key to finding lasting success with you finances, isn't it? Know
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