Thank you for clarifying that you need to only pay the statement balance in full and not necessarily the entire balance (statement + new charges, But by all means you can if you have the funds). This was what I was confused about when I first got my charge cards and whether just pay the statement balance or entire balance
The bad thing about paying your full balance. You can lose out on points. I noticed this with some cards, if you don't let the issuer create a statement for that balance, you don't gain points. So be careful with that you might lose out on money.
A charge card is a type of credit card that enables the cardholder to make purchases which are paid for by the card issuer, to whom the cardholder becomes indebted. The cardholder is obligated to repay the debt to the card issuer in full by the due date, usually on a monthly basis, or be subject to late fees and restrictions on further card use. Charge cards are distinct from credit cards in that credit cards are revolving credit instruments that do not need to be paid in full every month and a balance may be carried over, on which interest is paid. Charge cards are typically issued without spending limits, whereas credit cards usually have a specified credit limit that the cardholder may not exceed. Most charge cards are held by businesses, corporations or executives thereof, and are issued to customers with a good or excellent credit score.
I actually dislike that charge cards don't affect credit score. Sounds like treating a credit card as a charge card might be more beneficial. I know amex platinum has some nice benefits, but I really don't care for them too much.
Matthew Thank you for that video yeah charge cards and credit cards can be confusing. I have the AMEX Green Corporate Card from my company I love it. But yeah it is different to know you pay your bill in full every month. Takes a little to get used to but its a good training tool to always pay credit cards off every month
I love my Amex Gold charge card my daily driver card. I prefer using the charge card because I know how to control my spending habit on a monthly basis.
I have one with America Express. You build your spending power. That means. They see how you spend and increase the limit. Sounds crazy. But they do that.
I think for beginners it’s better to use credit cards since a spending limit gives most people a better understanding of how credit works. But after getting a few cards or if your spending increases a lot due to raise in income then charge cards are really nice since a high/no limit can benefit your credit score
Then why use a charge card? There’s gotta be some benefit other than not attracting creditors. If you plan to use both like a charge card and what are the benefits of a charge card? might as well just use a credit card since it can help you if you useit right. Do charge cards give better bonuses. I don’t know. Kind of hoping you would’ve explained that.
In the UK, you just set your credit card to take the statement balance at the end of the month. Do you not have that there? The only time you wouldn't do that, is if you have a 0% promotional rate (12 to 24 months). Then you pay the minimum and save the payments in a high rate savings account. These are next level in terms of keeping on top of finances. Charge cards seem inferior
Thank you! I’ve been wondering about credit utilization regarding charge cards and wasn’t sure how that worked. So seriously, thank you for covering that. Updated question: Does using charge cards positively impact you score at least?
It's really surprising that in the year 2019, a lot of people still don't know the difference between a charge and a credit card! the American educational system at its finest!🤯💳
You said that with a charge card you have to pay off your full balance then you said not the full balance but the statement balance..if that is the case isn't that the same as paying the minimum balance like with a credit card? Or do you mean that there is no monthly minimum payment with a charge card but if I spent $500 this month and another $500 next month the statement may only show the first $500, not the total, so you would have to pay that off not the whole $1000 because it's not on the statement?
I don’t want charge cards!! If I’m going to invest with my cards I need time for my investment to mature…some investments take 30-60 days so charge cards will not be a good thing for me
When I got a purchase on a charge card my score dropped 27 points and my credit useage went up to 67% and although I paid the statement balance it only rebuild 2-5 points at a time and if the payment is late it drop faster. A charger card is for big purchase items ex refrigerator, medical procedures, where a personal loan couldn’t happen.
I wish to add to the discussion, I just got a Chase freedom card. The promotion available to me was no intrest on spending or balance transfers made in the first 60 days for 15 months. So carrying a balance doesn't always mean paying interest. Agreed credit card debt is generally bad but if you are smart about it you can do okay.
Do you prefer using charge cards or credit cards? Remember to hit the like button on this video and subscribe for more videos like this one!
I don't have a charge card yet, but I treat all of my credit cards like charge cards. 👍🏻
That is smart, glad to hear that there are smart people in the world
When you are at the charge card level, You know how to run your finances(most people)
Most people don't know how to run their finances.
Thank you for clarifying that you need to only pay the statement balance in full and not necessarily the entire balance (statement + new charges, But by all means you can if you have the funds). This was what I was confused about when I first got my charge cards and whether just pay the statement balance or entire balance
The bad thing about paying your full balance. You can lose out on points. I noticed this with some cards, if you don't let the issuer create a statement for that balance, you don't gain points. So be careful with that you might lose out on money.
A charge card is a type of credit card that enables the cardholder to make purchases which are paid for by the card issuer, to whom the cardholder becomes indebted.
The cardholder is obligated to repay the debt to the card issuer in full by the due date, usually on a monthly basis, or be subject to late fees and restrictions on further card use.
Charge cards are distinct from credit cards in that credit cards are revolving credit instruments that do not need to be paid in full every month and a balance may be carried over, on which interest is paid.
Charge cards are typically issued without spending limits, whereas credit cards usually have a specified credit limit that the cardholder may not exceed.
Most charge cards are held by businesses, corporations or executives thereof, and are issued to customers with a good or excellent credit score.
I never knew that charge cards had to be paid at the end of the month! Thanks for the video man
No problem, thanks for watching!
Change cards help you stay more discipline with your spending.
True, I feel like a lot of people would learn how to really use a credit card with a charge card.
I actually dislike that charge cards don't affect credit score. Sounds like treating a credit card as a charge card might be more beneficial. I know amex platinum has some nice benefits, but I really don't care for them too much.
Matthew
Thank you for that video yeah charge cards and credit cards can be confusing. I have the AMEX Green Corporate Card from my company I love it. But yeah it is different to know you pay your bill in full every month. Takes a little to get used to but its a good training tool to always pay credit cards off every month
I love my Amex Gold charge card my daily driver card. I prefer using the charge card because I know how to control my spending habit on a monthly basis.
I have one with America Express. You build your spending power. That means. They see how you spend and increase the limit. Sounds crazy. But they do that.
Yes, that is correct. It does not sound crazy at all.
I think for beginners it’s better to use credit cards since a spending limit gives most people a better understanding of how credit works. But after getting a few cards or if your spending increases a lot due to raise in income then charge cards are really nice since a high/no limit can benefit your credit score
Every card should be used as a charge card. Pay statement in full every month unless you have a no interest for 3 to 6 months
I agree
Then why use a charge card? There’s gotta be some benefit other than not attracting creditors. If you plan to use both like a charge card and what are the benefits of a charge card? might as well just use a credit card since it can help you if you useit right.
Do charge cards give better bonuses. I don’t know. Kind of hoping you would’ve explained that.
In the UK, you just set your credit card to take the statement balance at the end of the month. Do you not have that there? The only time you wouldn't do that, is if you have a 0% promotional rate (12 to 24 months). Then you pay the minimum and save the payments in a high rate savings account. These are next level in terms of keeping on top of finances. Charge cards seem inferior
If it doesn’t show up on your credit score right, so you’re saying it doesn’t help build my credit if I’m using it responsibly either ???
A teacher at my job told me to research charge cards. So here I am.
Thank you! I’ve been wondering about credit utilization regarding charge cards and wasn’t sure how that worked. So seriously, thank you for covering that.
Updated question:
Does using charge cards positively impact you score at least?
Great video. Thanks for the clear understanding on charge cards.
No problem, Thank you for watching.
So basically charge cards dont help for rising ypur credit score and credit cards do right?
Nice video! I don’t think I’ll get a charge card now
Charge cards are not bad, you are just forced to be more discipline.
Good video again, Matthew :)
It's really surprising that in the year 2019, a lot of people still don't know the difference between a charge and a credit card! the American educational system at its finest!🤯💳
Hey, you are not wrong on this one.
it’s 2021 now but i still dont get it 🥺
@@101downut Wow!! Really!?
Thank you!
yessirrr thanks for helping me study
Thank you learned something new
Sorry for watching it a little late. enjoyed this video too 👍 thanks thanks
Your videos are helpful
Thanks for the information
you wont pay interest with the charge card just a late fee if not paid on time 39 bucks
Can you get cash with charge card.. cash advance? And is there high apr ?
With charge cards can you set a limit say if I wanted it to be $5,000 can I set it at at that with Amex?
Yes, you are correct you can set a limit but they do not preset your limit for you.
Great info...
Great video 👌
You said that with a charge card you have to pay off your full balance then you said not the full balance but the statement balance..if that is the case isn't that the same as paying the minimum balance like with a credit card? Or do you mean that there is no monthly minimum payment with a charge card but if I spent $500 this month and another $500 next month the statement may only show the first $500, not the total, so you would have to pay that off not the whole $1000 because it's not on the statement?
So what happens when you dont fully repay the charge card?
Great video
Thanks for this
Thanks you for sharing
Thank you for watching
I don’t want charge cards!! If I’m going to invest with my cards I need time for my investment to mature…some investments take 30-60 days so charge cards will not be a good thing for me
Working on getting a charge card.
Yeah, They are great
When I got a purchase on a charge card my score dropped 27 points and my credit useage went up to 67% and although I paid the statement balance it only rebuild 2-5 points at a time and if the payment is late it drop faster. A charger card is for big purchase items ex refrigerator, medical procedures, where a personal loan couldn’t happen.
Good video
❤helpful info❤
Intresting
I wish to add to the discussion, I just got a Chase freedom card. The promotion available to me was no intrest on spending or balance transfers made in the first 60 days for 15 months. So carrying a balance doesn't always mean paying interest. Agreed credit card debt is generally bad but if you are smart about it you can do okay.
Charge card are better
so far ive paid 0$ in credit card interest so a charge card might be good for me
What happens when you forget to pay off the charge card balance? Thanks
Batman breaks into your house and beats the shit out of you
@@FalconTheFries 😂🤣🤣
👍🏿😃🍵
Waste of time and no useful information, you are just selling your Manjan 👎
So basically charge cards dont help for rising ypur credit score and credit cards do right?
So basically charge cards dont help for rising ypur credit score and credit cards do right?