Charge Card

Explanation: Many people use the terms credit card and charge card interchangeably, but there is a major difference.

Charge cards are credit cards that require the balance to be paid in full at the end of every month.

Because you cannot carry a balance, a charge card doesn't have an APR or Interest Rate.

Our Thoughts: A partial payment (or no payment) on your charge card might result in a severe late fee, as much as 3% of the balance.

Background: In 1914, Western Union offered the first charge card for consumers. Today American Express is the largest issuer of charge cards. Businesses often use charge cards to pay for and keep track of business expenses. Charge cards that are issued to employees are also referred to as purchasing cards.