Thread: Credit vs. Charge Card

There's three reasons for this going on.

First of all charge card limits are not reported on your credit file. We actually have more incentie to use credit cards instead of charge cards in order to better our credit score. No wonder we're in a mess.

Second reason is Americans like buying stuff they can't afford. They always tell themselves they will pay it off at the end of the billing cycle. Then it turns into two billing cycles, three, and so on.

Third reason is there's more money to be made with credit cards. The only revenue on charge cards are the transaction fees. Amex is a card issuer so they make money off the transaction fees and interest. A bank of financial institution would have no real reason to issue a charge card because most of the money would be going to Visa or MC for transaction fees and the bank would only get a small cut of that.

I do agree we need charge cards to become more popular again. If that's the only way for Americans to keep their spending in line then I'm all for it!

Well at the end I think charge cards are the better way to control your own spending. It has to be paid off..... that's the great thing about it