Credit Card versus Charge Card

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This is one of the most important question that a user must answer first before embarking to get a 'plastic'. The benefits are different for each type (as well as the downside) and therefore, potential users must not get confused.


If you are a transactor (definition: someone who uses it only as a medium of exchange), best to get the charge card or the credit card if need be.


If you are a revolver (definition: someone who uses it for the credit facility), best to get the credit card. Do not get the charge card.


A charge card does not need to follow the standard interest rate (as set by Bank Negara Malaysia and the Association of Banks) for any amount outstanding since it is not a credit card. If any of its users have an amount outstanding, charge card starts charging penalty fees which can be more exorbitant than credit cards. Moreover, you will be barred from making further purchases using the card.