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Charge Card and Credit Card: Which one is better?

People usuallygetconfused wheneverthe bank offers a choice betweena credit card and a charge card. Most of them don’t even know what those are, yet still, easily get captivated and agree without any consideration – it’s quite unsafe!

The two types look similar at first glance, as they have the same function, which is to pay your today’s bill for next month. Nonetheless,some major traits completely distinguish them.If you don’t know the regulations and limitations, there are possibilities of obtaining additional fine or tax. Nobody wants that, right?

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Fortunately, we are here to educate you about the differences between these services. Let’s take a look at them.

Although the cards look the same, they have plenty of differences.

Fee Differences

First of all, the monthly cost between charge and credit card may vary, and it is based on the bank’s policy. Both of the services also demandan additional fee for every late payment.

Here is what distinguishes them apart. The penalty of charge card is generally much higher than its rival. For the annual fee, a credit card also has the advantage, because many financial corporates offer much lower outlay, or sometimes they evengo free!

The One with Better Rewards

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In this aspect, the charge card shines brighter than its mortal enemy. Why? Chris Carrillo, one of the finance experts, mentioned that the credit card proposes more insignificant gifts, especially the one without annual payment. Even the paid CC’s freebies are still lacking compared to the charge card.

A charge card enables you to shop without any interference.

Usage Limits

One of theirsignificant differences lies inthis aspect. Charge card doesn’t have any usage limit, and the holders are able to buy anything they want for a month without worry. Meanwhile, a credit card sets a maximum purchase for one month based on your capabilities.

The freedom to use the card without restriction has one fatal flaw, though! It is not suitable for irresponsible persons with inconsistent jobs and shopping addicts. Such convenience only makes them pile up on debt, especially if they don’t have enough money to pay their purchases.

So, if you are willing to use a charge card for daily necessities, use it wisely!

For a low-middle income person, a credit card is more beneficial.

Last Question – What Card Is Suitable for You?

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As the experts suggest, a credit card is a better choice for one who has a lower yet consistent income and expenditure. But if you are the owner of prominent enterprises or a super-rich person who often spends a bunch of money for many luxury goods and services, the charge card is suitable for you.

Well, have you decided which one you will pick?

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