Credit Cards vs Charge Cards

Charge Cards vs Credit Cards from The Startup Garage
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The main difference between a credit card and a charge card is the lack of interest rates and spending limits offered by charge cards.  Charge cards have no interest rates because the borrower is required to pay off the entire balance on the card each month.  There is no option to pay the minimum amount as with a credit card.  There are however, fees associated with failure of payment. 

Charge cards are a good source of funding for short-term purchases that can be repaid within a limited amount of time.  Some businesses prefer a charge card for a self-imposed fiscal restraint because the card must be paid off in full every month.  Depending on the issuer, some charge cards have greater reward benefits or other advantages like enhanced tracking, though this is dependent on the issuer.  American Express is the only major credit card issuer to offer charge cards.

Whether you have a question about Credit Cards vs. Charge Cards, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!
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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.