09 Jan Credit Cards Versus Charge Cards
As most people know, credit cards authorize purchases on credit. Most credit card accounts allow you to carry a balance from one billing cycle to the next. You may have to pay interest on that balance. Typically, you have to pay at least a certain amount of your balance each time you receive a bill.
A charge card is a specific kind of credit card that requires payment of the entire account balance upon receipt of the statement; usually, the a balance cannot be rolled over from one billing cycle to the next. Because you can’t carry a balance, a charge card does not have an annual interest rate. Examples of charge cards are American Express and Diners Club.
The site “Life After Bankruptcy” suggests that a charge card can be a good way for people recovering from bankruptcy to discipline themselves to pay their bills monthly. A charge card will force you to pay off the complete balance monthly and will prevent you from going into debt by carrying a balance. If you don’t have a charge card right now, try managing your credit cards using the principle of the charge card. Personal financial management in this manner may accelerate the recovery of your FICO score and will set you on the road to mastering your cash flow.
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