Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
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  • Difference between Credit cards and Charge cards is Rated as "Excellent!" by 94019 Users

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    Difference between Credit cards and Charge cards

    Credit cards are one of the most popularly used financial products used by individuals across the world today. Credit cards are basically products that allow customers to borrow money against a ‘line of credit’ and repay the same every month, along with a nominal rate of interest. Credit cards are a boon to individuals as they can purchase all their favourite high end products and services while paying for the same in instalments. However, individuals will have to note that there is a limit imposed on the amount that they can spend.

    A Charge card on the other hand, is slightly different. Customers using Charge cards can also buy products but a line of credit will not be extended to them. They cannot repay the amount in instalments but will have to pay back the entire amount that they’ve spent in one go. In case this is not done, a penalty amount will be levied. Unlike Credit cards, Charge cards do not have applicable interest rates and do not impose limitations on customers regarding their spend limit. Charge card customers are usually privy to a number of offers and perks.

    The concept of Charge cards is supposed to have been founded by the card company that issues Diners Cards called Diners Club International. Other providers include Amex, MasterCard and Visa.

    Charge cards in India are not as commonly used as Credit cards are and this is mainly because most individuals are not aware of this concept.

    Both of these cards allow customers to delay their payments. Individuals will have to repay the amount within a set period of time else a predetermined penalty will be levied.

    However, despite some of their similarities, these cards are not the same. Given below, are some of the important differences between the two.

    Rate of Interest

    Interest rates are applicable on Credit cards. It is calculated as an Annual Percentage Rate or APR and is determined by the credit card type that the customer has, such as travel cards, dining cards, and so on. However, interest rates do not apply to Charge cards. This is because the balance is not carried on a month-on-month basis and there is no credit offered as such.

    However, regardless of the interest rates, customers should pay off their balances prior to due date. Most individuals only pay their minimum balance, but this is financially quite harmful, as these balances will keep accumulating, resulting in a huge pile of debt later on. Additionally, it also has an adverse impact on the individual’s CIBIL score. By not delaying payments, individuals will also not have to pay a lot of interest.

    Limit of Credit

    Credit cards have spend limit imposed on them which is decided based on the customer’s requirements and their credit score and rating. These factors determine an individual’s eligibility to procure a card. In order to make the best use of their Credit cards, customers will have to use it prudently. As long as they use an amount that is within the imposed credit limit and the amount that they pay back each month is above the minimum amount, their credit score will be quite high.

    On the other hand, customers will not have any restrictions or a limit on their Charge cards. There is no credit involved, when it comes to Charge cards, hence customers can use their Charge cards without worrying about credit limits. However, there is a high penalty fee levied on customers incase they do not repay the amount that is owed hence encouraging individuals to repay the amount as quickly as possible. Customers should also note that, judicious use of their Charge cards will result in a higher credit score.

    Balance on the Cards

    Balances on Credit cards accrue every month. Based on the type of Credit cards procured as well as their usage, interest rates applicable vary. These uses include cash advances, balance transfers and so on. Customers need to know that an interest rate will also be charged on to the outstanding balance on their credit card.

    When it comes to Charge cards, the outstanding balance is paid directly from their bank account and many choose this route so as to avoid paying a hefty interest amount.

    Card Charges

    This varies based on each card. Some cards do not have annual fee but others do. However, interest is charged on all Credit cards for cash advances, transfer of balance and so on.

    Charge cards provide numerous unique benefits to cardholders but an annual fee is charged.

    Both these cards come with their own set of advantages and disadvantages. Their usage determines their rate as well as the needs of the customer. While procuring either card, applicants must understand their needs and necessities and only opt for those cards that they will use and are advantageous to them.

    Credit Card Reviews

    • HDFC Bank Credit Card
      "Good for travelling"
      0.5 4.0/5 "Great!"
      I took HDFC Platinum card through online. For my credit card there is no charges because it for the business. I am not sure about the interest , I used to pay on time, there are lots of offers even if I try to travel in flight there is privilege offers and discount on ticket.
      Was this review helpful? 1
      , ahmedabad
      Reviewed on Dec 07, 2018
    • review Credit Card
      "GOOD"
      0.5 4.0/5 "Great!"
      The features are good with this card as they provide the flexible pay for the bulk amount of usage with the credit card of STATE BANK OF INDIA. The option of converting the EMI is very good and with the simple procedure. The rate of interest is nominal.
      Was this review helpful? 2
      , bangalore
      Reviewed on Dec 07, 2018
    • HDFC Bank Credit Card
      "GOOD"
      0.5 4.0/5 "Great!"
      The best feature is that they are providing the jumbo loan, instant loan from this credit card. I am using it from past 5 years the credit card with the HDFC BANK. The credit limit is satisfactory also added on that they are offering with the good offers.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 07, 2018
    • HDFC Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been using HDFC credit card for long time, they have charged me annual fee in this card, and i have no idea is there waived off option available in this card and i am happy with my credit limit they have given me in this card and they have given good offers in maximum products.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 07, 2018
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service for first time, the best part in bank bazaar is that they are responding very well, i have applied for credit card they have responded me time to time and i came to know about bank bazaar service through on line and i have been using mobile application it is easy to access.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 07, 2018
    • IndusInd Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have applied INDUSIND bank credit card through on line, they have charged me annual fee in this card, and i have no idea that there is waived off available in this card or not, and i have not check credit limit how much they have given me in this card as i have not activated the card yet.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 07, 2018
    • Bank Bazaar Credit Card
      "Good website"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar is providing very good service to the customer. Last 7 months i have come to know about the bankbazaar. One of my colleague has referred me about bankbazaar website. Customer care people are very helpful and polite given me a proper service
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 07, 2018
    • ICICI Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using ICICI bank credit card, it is basic card, there is not much offers available in this card, i got this credit card through bank itself as i have my salary account so they have given me credit card from this bank and they have not charged me annual fee in this card, and i am happy with my credit limit which they have given me in this card.
      Was this review helpful? 2
      , mumbai
      Reviewed on Dec 07, 2018
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service from past one year, i came to know about this bank bazaar service through on line,i am happy with their service and i have applied for credit card from them, i have not faced any issue or difficulty in that getting my credit card, whole process when smoothly and i have used mobile application it is easy to access.
      Was this review helpful? 0
      , chennai
      Reviewed on Dec 07, 2018
    • Kotak Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have applied for Kotak mahindra credit card recently through on line , it have been just one month only i have started using this bank credit card, they have not charged me annual fee in this card and i am happy with my credit limit but i am expecting that they should increase my limit after 2-3 months, it is too early to comment about this bank card.
      Was this review helpful? 1
      , chennai
      Reviewed on Dec 07, 2018
    • SBI Cards Credit Card
      "Average card"
      0.5 3.0/5 "Satisfactory"
      I have been holding SBI credit card for long time, there service is not up to the mark, they have charged me annual fee in this card, and there is no waived off option available in this card, they have not given much credit limit, offers is not good.
      Was this review helpful? 1
      , lucknow
      Reviewed on Dec 07, 2018
    • HDFC Bank Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      The service is very good with the HDFC BANK so that i have taken the personal loan with this bank. The loan amount is satisfactory with this loan and also the rate of interest is 12% which is nominal and satisfactory also the duration is for 4 years to pay the loan.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Dec 07, 2018
    • Union Bank of India Credit Card
      "Good response for credit card"
      0.5 5.0/5 "Blown Away!"
      Recently I have taken the Union bank credit card for the ITR paper, I submit the credit card they done the process. even the processing fee is low. If I use the credit card there is no charges. Bank response is good they provides some offers on the card.
      Was this review helpful? 0
      , vijayawada
      Reviewed on Dec 07, 2018
    • Bank Bazaar Credit Card
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using bank bazaar service from past 2 months, i came to know about bank bazaar service through on line, as i was searching for some credit card and the best part in bank bazaar service is that they use to update time to time about the financial product whichever i have taken from them and i have been using website it is easy to access.
      Was this review helpful? 0
      , lucknow
      Reviewed on Dec 07, 2018
    • HDFC Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have been applied for HDFC credit card recently through on line, the best part i like in this card is that they have given me good credit limit in this card and there offers part is good, they have given me good offers in maximum products, but one issue is this bank is that i can not convert my Emi option , apart from that there service is good, they have charged me annual fee in this card but from second year 1000 for first year it is free.
      Was this review helpful? 0
      , lucknow
      Reviewed on Dec 07, 2018
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service for first time, and i came to know about bank bazaar service through on line as i was checking for some financial products and i have been downloaded mobile application it is easy to access.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 07, 2018
    • HDFC Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have applied for HDFC credit card recently, they have charged me annual fee in this card they have charged me up to 1000 , they have given me waived off option or not i have no idea, and i am happy with my credit limit it is sufficient for me, but one thing was disappointment with me is that i can not convert Emi option , apart from that there service is goof and they give good offers in maximum products.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 07, 2018
    • SBI Cards Credit Card
      "Poor service"
      0.5 1.0/5 "Really Bad"
      I have been holding SBI credit card for long time, there service is not up o the mark, there customer service does not co-ordinate with me well and without my knowledge they have deducted and i asked for what reason they have deducted even customer service team donâ??t have proper knowledge about that and they have charged me annual fee up to 500 and there is no waived off option available in this card.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Dec 07, 2018
    • ICICI Bank Credit Card
      "Good service"
      0.5 4.0/5 "Great!"
      I have been holding ICICI bank credit card for a while, they have charged me annual fee or not i have no idea, i think they have not charged me annual fee, and there credit limit they have given in this card was sufficient , i am happy with my credit limit and they provide good offers in this card.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Dec 07, 2018
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service from past one years, for comparing different bank financial products and to check my credit reports but i have applied from bank bazaar this year only and i came to know about bank bazaar service through my friend as he had referred me, i have been using website it is easy to access.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Dec 07, 2018
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