Are charge cards good for building credit history?
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Are charge cards any good for building your credit? Or are they like debit cards that don’t build credit? Tnx..
Yes, they build credit
A charge card is a specific kind of credit card.
The only difference between a “regular” credit card to a charge card is that while regular credit card enables you to make a minimum payment and roll your balance to the next statement, with a charge card you must pay the statement in full and can’t carry a balance.
A charge card is a credit account, and as such it helps you to build good credit exactly like a regular credit card would.
Two good examples for this type of card are Dinner’s Club and American Express.
B.T.W, Although I use a Visa, I always pay my statements in full and NEVER carry a balance on it because I don’t want to pay interest, and I don’t want to use more credit than what I can afford, so from a practical point of view I use my Visa as a charge card.
Hope this helps
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