Question

Credit cards and charge cards differ in two important ways. One is the method of payment. What is the other difference? A. You earn interest when you use a credit card but not a charge card. B. You earn interest when you use a charge card but not a credit card. C. You have to pay interest on credit cards but not on charge cards. D. You have to pay interest on charge cards but not on credit cards.

Answer 1

B You earn interest when you use a charge card but not a credit card.

Answer 2

The correct answer is Option C, You have to pay interest on credit cards but not on charge cards.

Step-by-step explanation:

There are two common methods of payment through cards. One is Credit card and the other is Charge or Debit Card. The main difference between the two cards is the method of their payment. The other difference is that, when credit card is used, the credit card holder actually buys things on credit and pays back to amount later with a percentage of interest on that purchase, whereas charge cards use the direct debit payment method in which the person pays the bill directly from his account and there is no interest involved.