How are charge cards different from credit cards?

I

Ivanna

Member
Is it true that by using charge cards you actually avoid credit card debt? How are they different? They say they don't charge fees if you pay the bill in time and they don't have a credit limit, so how come charge cards aren't more popular than credit cards? What's the catch?
 
I've been wondering about these charge cards myself. So I read a thing or two about them. This is what I gathered on charge cards so far:
- a charge card is a credit card, but has some specific features (like, you pay an annual fee for it)
- the payment of the debt is made in full, it cannot be rolled over to the next billing cycle
- the reason above is probably what makes you think you can't get into debt. You buy something, you pay with your charge card, but you'll pay the debt in full when you receive your next statement. And you won't pay interest like you do with a credit card.
 
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