Buying first and paying later is a norm for credit cards. This norm is a well-proven method when it comes to credit cards. However, this statement can also be implemented for charge cards. Precisely speaking charge cards are another type of card only just with no maximum limit. But the case is not the same with credit cards. As credit cards have different types of limits present on them such as credit limit, cash limit, etc.

Credit cards are more famous in India and charge cards do not have that good of a market. This reason also gives credit cards the upper hand when it comes to popularity. Indeed, there are some advantages of charge cards such as no unnecessary charges but still, the charge card users are very less.

Charge cards give you more freedom for your purchases since it does not have a limit and the rewards with these are also remarkable. Credit cards are more restricted in the approach since you cannot exceed the credit limit hence giving you

In a nutshell, charge cards and credit cards may look similar and they are up to a certain point but the way they work is very different. You will have to pay off the balance every month in full with a charge card, but with credit cards, you can carry your balance on a month-to-month basis on EMIs.

Let’s take a look into the differences between both cards

Charge Cards –

A charge card is a financial tool used to make credit payments. Here with these cards, there is no limit on the credited amount but the cardholder has to pay the whole amount in the next month. This monthly payout can be said to charge the card back to its original pace every month.

Charge cards are very flexible on payments. They don’t have any credit limit and you can use them for every payment you wish to make. Charge cards are a very good option for business people or entrepreneurs. This charge card can also be very useful for saving money and a good choice for small business owners. This product also helps you cover your day-to-day and recurring daily expenses.

Although charge cards do not have a huge impact on your credit score, they can still play an essential role in making a good credit history for you. If you pay your dues on time every month, this shows your consistent and responsible nature.

American Express is the only bank that issues charge cards in India. There are two variants of the American Express Platinum Card and the American Express Gold Card.

However, the disadvantage here is that charge cards are not very popular in the Indian market and they do not have many options present in the market. And you don’t get the option of incurring more credit after the month until and unless you pay the amount in full in monthly statements.

Credit Cards –

Credit cards are another type of financial tool which is flexible in making payments. Credit cards have a credit limit and even a cash advance limit. But you can choose to make the payments on your own accord. Credit cards allow cardholders to pay for their expenses with the credit limit issued by the card issuers. If you go beyond this credit limit, you will have to clear some of the amounts or it will hit your credit score badly.

Yes, credit cards not only impact your credit history but also lowers your credit score. Credit cards however are very popular in the market as compared to charge cards. There are many credit card options available in the market. Users can choose the one which suits their needs and wants.

Credit cards have many noted benefits such as rewards on every amount spend with the cards, complimentary access to airport and railway lounges, zero liability protection, and much more. Credit cards are pretty much well-defined according to the needs of the user. These credit cards come in a lot of distinguished varieties. For example, there are cards very well suited for traveling, shopping, fuel, cashback premium, super-premium, and basic entry-level cards.

A credit card is a good option for an individual, these types of cards can help you with your daily expenses and you can also choose how you wish to repay the debt.

The disadvantage of having a credit card is the credit limit, although it can be extended by the card issuer, however, it needs to be requested. Credit cards are also very expensive since cash advances can incur a lot of interest rates and charges on the transacted amount. Another disadvantage of having credit cards is that many times credit cards are not accepted as payment methods in such as EMIs, etc.

To get a clearer vision of which card is better, here is a table of Charge cards Vs. Credit Card

FeaturesCharge CardsCredit Cards
Credit LimitNo present Limit, Spending is not limitedYes
Interest RateNo interest rates since the amount is to be paid in full every monthFixed or variable Finance charges
Late FeesYesYes
Annual FeesDepend on the cardDepends on the type of card
Rewards and PerksSometimes it includes rewards, welcome bonuses, and other benefitsOften includes rewards, welcome bonus, and other perks
AccessibilityFewer options are available and the requirements are stricter for approvalNumerous options are available in the market, much easier to qualify for depending on the creditworthiness
Recommended Credit ScoreGood or excellentAll credit ranges.

The main difference between charge cards and credit cards is their credit limit flexibility, payment flexibility, and interest rates charged on them.


Credit cards and charge cards are often mistaken for one another. These two cards do share some similarities as they both are financial tools and have to provide credit to their users as their main feature. Other features that can vary but are present in most credit and charge cards are that they both are inclusive of benefits and rewards.

Both these cards are well-suited to different categories. Such as charge cards are pretty well suited for business, be they small or big, entrepreneurs and credit cards can be issued for business purposes as well along with individuals. But credit cards are much more suited to individual expenses as they have a credit limit.

However, with charge cards, you get very few options in the market, but for credit cards, you can get a variety of options depending on your need. Both charge cards and credit cards have their pros and cons which make them different from each other. But it is up to the user how they manage the cards they hold.

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