While these two credit terms are sometimes used interchangeably in the popular press, yes, there is a difference. A charge card requires users to pay their bill in full each month. In addition, many charge cards have annual fees. Credit cards, on the other hand, only require users to make at least the required minimum payment, which is often 3% of the outstanding balance. A credit card user can decide to pay just the minimum payment, make payment in full, or pay any amount in between. Interest is, of course, charged on the unpaid balance.
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