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Difference
between a credit card and a charge card.
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Charge cards are often
gas and department store cards, plus a few
other brand-name cards. They demand that you
pay your balance in full each month, and penalties
for non-payment can be severe. |
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Credit cards are somewhat more forgiving.
They allow a cardholder to carry a balance from
month to month. Although it’s advised
that you pay your complete balance each time
you get a bill. |
The best reasons to use a credit card are for convenience,
flexibility, and for the purchase benefits that many
new cards offer.
Who's in Charge
Make sure YOU manage your credit card; it shouldn’t
manage you.
A credit card is like a short-term loan. It’s
is the most popular form of personal credit, but also
the least understood. Although it might seem easy
to use — just swipe, right? — there’s
a right way, and a wrong way, to use a credit card.
The Right Way to Charge It
There is a school of thought that believes that a
credit card can be used for all kinds of purchases.
However, you could manage your spending better if
you charged major expenses on your credit card, as
it provides a good indication of your monthly expenses.
Another good way to use your credit card is for purchases
that are linked to “offers” or “points”
that can be redeemed at a later date.
It is advisable that you use your credit card as a
convenient and valuable purchasing tool, rather than
as a matter of habit. Remember, your card is meant
to be a help, not a hindrance.
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