The main differences between charge cards and credit cards come down to the amount you can spend and how payments are structured. Charge cards come with no preset spending limit and require you to fully pay off your balance each month. Credit cards allow you to carry a balance, but they specify a credit limit and may charge interest.

The defining difference between credit cards and charge cards lies in your ability to carry a balance — that is, roll debt over from one month to the next. Traditional charge cards don't let you do that; you must pay the balance in full every month. Credit cards let you pay for purchases over time, usually with interest.

A charge card is similar to a credit card. But a big difference is that a charge card’s balance often has to be paid in full each month. Charge cards typically don’t have a preset credit limit like credit cards do. Instead, the card issuer might approve purchases based on financial patterns and habits.