Welcome back to the channel today's videos gon na, be about the five different things that are different between a credit card and a charge card. I want to kind of get this video out because there's a lot of misconception, people say charge cards or credit card or debit card or whatever. So today's videos gon na, be about the difference between a credit card and a charge card. Five of the most obvious differences, I'm sure there are a lot more reasons out there, but the more the most fived in the most common.

I'm sorry the most common five reasons: okay and I'm also gon na - do again make sure you're subscribed if you're new, we're doing an Amazon gift card. Giveaway four of you will be receiving a $ 25 Amazon gift card, so make sure you click that subscribe button. So you don't miss anything and also, let me know that you subscribe by commenting on this video, so I can enter you into the drawing. Let's get right into this video number one is the no preset limit charge cards with charge.

Cards are just only at this point. American Express that is the only company that offers charge cards. American Express's cards don't have a preset spending limit when your traditional credit card will you wouldn't know what your credit limit is and that will obviously be whatever your limit is. So if you have a credit card from Chase for $ 10,000, you know you cannot spend more than ten thousand dollars unless you get a credit limit increase and if you want to see a video on how to get a credit limit, increase I'll put that video At the end of this, I can show you guys how to get a credit limit increase with you know, I'm pretty much any bank so keep that for the end, I'll put the link into the description as well, but back to this video, so credit card, you Have a limit and a charge card? You don't have a preset spinning limit.

That does not mean, though, that you have no limit the only card that I've kind of heard. Rumors about is the Amex black card, and that is for the you know the wealthy and the rich. They may not have a limit okay, they may not. I'm not too sure.

Don't quote me on that, but your green card, your gold card in your platinum card. There is no preset spending limit, but American Express does have a specific limit for you that they only have information in access to. But you can always go on American Express's website to seek, and I don't recommend this and I'll - tell you why you could always go on our website. They have a tool where you can see how big of a purchase you can.

You can swipe for the billet. The most I got was about thirty thousand dollars. I don't recommend doing that, because that can probe a financial review, which means it will freeze your account, ask for some financial documents etc. If they see somebody is trying to spend thirty to forty to fifty or even a hundred thousand, I mean I've seen people even try that they're going to be very curious as to why you're trying to make that purchase, and you know, if you do that, and Then kind of just leave the bank they're in a big hole, so just kind of stay away from that.

But that's number that's number one. No preset spending limit number two: a Charge Card. You have to pay the balance in full and a credit card. You don't have pay the balance in full now.

I know American Express now. Has this pay overtime, balance or pay later and that's awesome, but traditionally our charge card was meant to pay a fool each and every month. When your statement was due and a tradition of credit card, you don't have to pay the full amount. So an example: if you have a credit card for $ 10,000, you can only pay, you can only pay either and sorry not only pay.

You can pay one of two options: the minimum payment or the full balance, or maybe something between. So, let's see your minimum payment was $ 35, but you owe 600 bucks. You can either pay $ 35 and that's all you need to really pay what you're going to get interest charge to you or you could pay $ 300, because maybe that's all you have or you could pay the balance in full $ 600. If you pay the balance 1/4, there's no interest if you pay the balance of the minimum, or maybe a little bit above the minimum you're going to get interest accrued to you.

So all that interest - I was recruited about a month you're going to get hit with that. If you don't pay it in for even if you don't pay that balance in full by $ 10 you're going to get hit from the entire balance, because you didn't pay the balance of for the difference between a charge card and a credit card, traditionally a charge Card you'd have to pay the balance of fool. The pro to that is you don't have to worry about interest another pro to that is you're controlling yourself most of the time, because you know at the end of the month, you have to pay back anyway. So that's number two: you have to pay them out as a fool traditionally now with this pair of a time you don't have to, but the interest is going to be a lot higher and when a credit card would be number three annual fees.

Okay, so again American Express all of their charge cards the green, the gold to platinum, the black. They all have annual fees. You cannot avoid it they're going to hit you and your fee, so that is pretty straightforward credit cards depending on the type of cards you have depending on you know the type of tier car. You have maybe got a starter card or something like that.

You may not have annual fee, so it has number three pretty straightforward: the annual fees American Express you will have annual fee and, depending on the type of credit cards you may have with a bank you may not have, or you may have an annual fee number. Four utilization charge cards be honest with you, utilization really doesn't exist, and what I mean by that is you have no preset limit. You have no limit to kind of go off of so you're, not necessarily under or over 30 %, and you most of the time have to pay the balance of for a credit card. You do have a utilization kind of factor that is gone and actually with vantage score and FICO a charge card.

Credit utilization isn't in the formula, because there's really no limit that they're going off of to kind of give you if you're over 30 percent or under 30 percent or whatever credit card you do so again, example $ 10,000. 30 % of that would be 3000. That will either hurt or help you. Now I get him your 30 % under that's going to help you with the credit card charge cards, you don't have anything to kind of go off of so in FICO and VantageScore and the methods at this current time.

When this video is recorded, it is not a factor in that area when it's as far as your credit score being reported because there's nothing to go off of so that's number four utilization number five and I know people get utilization, an increase sometimes messed up. So again, number forwards increase and that's the 30 % with a credit card versus nothing to kind of go off with with a charge card, but number five with the inquiries. Both of these cards will definitely still give you an inquiry. If you are applying as a newbie and what I mean by that is specifically with American Express, if you apply as a newbie with this card, it will be an inquiry.

Hard inquiry on your credit report. There's no way around at both of these, so American Express versus any other bank or Amex refers Amex. If you get a charge card and a credit card from Amex, they will do a heart increase on your score will put a slight ding on it. So that is probably the most common thing that is similar to them and again you won't be able to really tell you know based off of how do you look unless you know what a charge card is you're not going to be to tell the difference.

So that's probably the only thing: that's really similar to them now American Express from what I hear, especially when you're kind of in the American Express ecosystem. So, like, let's say you want to get a American Express credit card and you that you got hit with the heart inquiry, but now you ain't want to get another one. Typically, it's a soft pool or if you wanted to get along with American Express typically it is a soft pool. So when it comes to American Express as a bank, if you're already in it, you don't have to really worry about getting another heart inquiry, which is pretty awesome as long as you're again applying under your information and stuff like that, so those are like the five Biggest differences, in my opinion, if you have any feedback, if you have anything that you want to questions on, I want to kind of clarify.

Let me know, and you have any other differences or any you know pros and cons to having a charge card or credit card. Let me know below again I'm doing a I'm sorry, not for Amazon gift card giveaways. Okay, all you got to do is subscribe. If you have a subscribe, you definitely want to do that now.

Let me notice you subscribed comment it. I like this video, if you found it helpful again thanks so much for tuning in have a great day.