What is the difference between a charge card and a credit card?(1 point) Responses A charge card has zero interest while a credit card has a high interest. A charge card has zero interest while a credit card has a high interest. A charge card is issued by a bank while a credit card is issued by a merchant. A charge card is issued by a bank while a credit card is issued by a merchant. A charge card is paid off each month while a credit card has a revolving credit line. A charge card is paid off each month while a credit card has a revolving credit line. A charge card has a revolving line of credit while a credit card is paid off each month.
A charge card is paid off each month while a credit card has a revolving credit line.
The difference between a charge card and a credit card is that a charge card is paid off each month, while a credit card has a revolving credit line.
The correct response is:
A charge card is paid off each month while a credit card has a revolving credit line.
To understand the difference between a charge card and a credit card, it is important to know how they work.
A charge card is a type of payment card that allows you to make purchases on credit, but you are required to pay off the full balance each month. This means that you cannot carry a balance from month to month, and there is no interest charged on the unpaid balance. If you fail to pay the full balance by the due date, you may face late payment fees or penalties.
On the other hand, a credit card provides you with a revolving line of credit. This means that you can carry a balance from month to month, and you have the option to pay off the minimum payment or a larger amount. However, if you choose to carry a balance, interest will be charged on the remaining balance, and the interest rates on credit cards can be relatively high compared to other forms of borrowing.
In summary, the main difference between a charge card and a credit card is in how the balance is handled. With a charge card, you must pay off the full balance each month, while with a credit card, you have the option to carry a balance and pay interest on the remaining amount.