Charge Cards or Credit Cards: Which are Easier to Get?

The terms charge cards and credit cards are usually thrown around as if they are the same item. While they serve the same basic purpose, the way they go about things is different. They have different terms, different maximums, points programs, and even approval rates. One type of card is definitely easier to get than the other. Here are the basics of getting approved for a credit card and a charge card.

Credit Cards

Credit cards are traditionally very easy to get approved for. Most of the time, as soon as you are old enough, you will start being bombarded with credit card offers. Most of the offers say something about you being pre-approved. This means that as long as your credit does not have any significant problems with it, you will be able to get a credit card from that company. They will usually list a customer service phone number on them to call and inquire about getting a card.

Once you get one of these offers, all you have to do is call the number and get approved. The process usually takes place while you are on the phone and then your real card will be sent in the mail. You are then free to use the card anywhere cards are accepted. You can make purchases and the purchase will be subtracted from your available credit limit. You are free to pay off the card as you see fit or leave the balance there for a later date. The interest rates that these cards charge is very high and accumulates on the balance every month.

Charge Cards

Charge cards on the other hand are usually more difficult to get. The approval process is usually a little more detailed and takes a little longer. In order to qualify for this program, you will have to have higher-than-average credit. They usually only allow those with the best credit and sufficient incomes to get this type of card. In many cases, they will extend them to businesses or business owners instead of individuals.

A charge card works a little differently than a credit card. When you purchase something on a charge card, you are basically getting a one month loan. This is not something that you can just buy whatever you want and pay for it over time. You pretty much have to have the money immediately to pay for it. Therefore, to have a charge card, you typically have to have sufficient money in your account and a strong income. This makes it ideal for businesses to keep track of employee expenses and purchases. 

A charge card tends to have a bit of a status symbol attached to it unlike a credit card. Almost anyone can get a credit card but not everyone can get a charge card. You have to be a little better with credit and you have to make more money to get your hands on a charge card. 


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