Question

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

Answer 1

B. You have to pay interest on credit cards but not on charge cards.

Explanation:

Credit cards and charge cards differ on the method of payment and on the interest credit cards charge you when you don't pay your full balance.

A credit card allows you to get credit and carry-over a balance at the end of the month, that's why you are charged an interest.

Charge cards don't extend you credit and are expected to be paid in full each month.