Is there a difference between a credit card and a charge card?

While these terms are sometimes used interchangeably, there is a difference between the two.

In short, a charge card (primarily issued by American Express) requires the cardholder to pay off balances in full each month. There are no interest rates, but there are annual fees. With a credit card, interest is charged and there is a preset credit limit.

To even qualify for a charge card, you'll need to have at least a "good" credit score – if not "excellent."

Both credit cards and charge cards can positively or negatively affect the cardholder's credit score, and both often offer rewards.