Another advantage of charge cards is that while they allow consumers to build a credit record by contributing to payment history and depth of credit, they generally won’t impact another important part of the FICO score: the utilization ratio. According to FICO’s consumer operations manager, the...

One advantage of using a charge card instead of a credit card is that it protects cardholders from accumulating credit card debt, since the balance has to be paid off in full each month. For cardholders who find that they constantly spend more on their credit cards than they intended to,...