"Charge" vs "Revolving"

Discussion in 'Credit Talk' started by tmitchell, Jun 21, 2001.

  1. tmitchell

    tmitchell Well-Known Member

    Can anyone tell me the difference between these two types of accounts? I have read that "charge" accounts can lower your score by 7-20 points.

    My Target card is listed as a "Charge" account by TU. Is this right?


  2. ble103

    ble103 Well-Known Member

    A charge card is a type of card that requires total amount of charges due in full by payment due as compared to revolving accounts where this type of card lets you pay over time if needed"monthly payments".Now i don't know much about how FICO views these types of cards as far with any charge card account wise.I think charge cards are a rip-off,why would anyone want to pay an annual fee when there are plenty of revolving accounts with no annual fee to choose from?Dosn't make economic sense for anyone to pay annual fees just to use their cards.Just having a visa,and mastercard is all that matters.I would say that revolving accounts are much better for credit scoring wise.
  3. tmitchell

    tmitchell Well-Known Member

    Thanks. Well then that would make my Target a revolving account then (not a charge). Time to write TU and ask about this.


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