Sunday, January 11, 2009

What is Charge Card?

Charge card are almost similar to credit cards but they don't have a monthly spending limit like $500, $5,000 etc. Its holder can make an unlimited number of purchases with his card, but he needs to pay back the entire balance in full each month or year as per policy.

Charge cards generally impose a fee and tack on penalties to discourage its holder from not paying back the balance. The cost of having a charge card is often significantly lower than the cost of having a credit card. For many consumers this is due to the interest related debt that can be racked up with the credit card.

No comments:

Post a Comment