Closing Credit Card accounts

[disneysteve]

Charge card is a card that you have to pay the amount of money that you charged every month... Technically there is no limit

What advantages does this offer over a credit card? My CC has a limit, though realistically it doesn't because it is so high we would never possibly charge that much (over $30,000). Do the charge cards offer better rewards programs or provide other benefits?

[nextel500]

What advantages does this offer over a credit card? My CC has a limit, though realistically it doesn't because it is so high we would never possibly charge that much (over $30,000). Do the charge cards offer better rewards programs or provide other benefits?

When you charge $100, you need to pay that right back within a 30-day grace period especially if you do not qualify for those extended payment plans at a very high interest. If you are late your credit gets hurt a lot but if you pay on time your credit rating increases quickly. They also trust you more increasing that “no limit” to a higher “no limit”. Your CC also has a limit, which means the more your balance goes closer to your available limit that means your FICO score will go down. Not true with Charge Cards as there is no limit. Well, $30k limit these days are not that much but you still have a limit.

Usually, higher the annual fee you pay the more services/programs/rewards you get. I am not an expert on this but from experience, the answer is yes given the nature of what the cards I had both charge and credit cards. perhaps someone who has more knowledge on this should elaborate further, but I am just speaking from experience. Chances are the Charge Card’s customer service will help you more than the credit cards because you pay more on the charge cards than the credit cards.