The Dillards American Express is listed as a credit card. And since charge card … The interest rate is one of the most important credit card features since the rate directly influences how much you pay for carrying a balance on your credit card. There are also several key differences between a charge card and a credit card. Similar to using credit cards, your charge card usage can have an impact on your credit score. Charge cards require good to excellent credit — meaning a score of 690 or higher — while some credit cards will approve you for an account if yours is less than stellar. The average annual percentage rate (APR) on retail credit cards in 2018 was 26.4%, compared with 20.3% for traditional credit cards, according to the Consumer Financial Protection Bureau. Both can offer perks: Both charge cards and credit cards can offer rewards and perks, such as cash back, travel benefits, free access to your FICO score, and much more. The Macys American Express is listed as a credit card, but the store card is listed as a charge card. Credit reporting: Charge cards: Your payment history is reported to credit reporting agencies, but charge cards don’t factor into credit utilization ratios. Such benefits vary by card, so check with your card issuer to find out how your spending is rewarded and what bonuses you get for being a … Both card types usually come with similar features, including earning rewards and travel perks. While charge cards don't come with an interest rate, credit cards always do, and it's often high. They Typically Have Hefty Annual Fees & Top-Notch Perks. Charge cards and credit scores. Late credit card payments hurt your credit score, and late charge card payments may do so too – that is, if the card company reports it to the credit bureaus. You can avoid paying interest on a credit card by paying the balance in full each month before the grace period ends. Charge Cards and Your Credit Score. Charge cards are no longer considered with respect to credit utilization starting with FICO Score 8 (they aren’t considered by VantageScore, either). American Express charges annual fees as high as $550. People often use the terms charge card and credit card interchangeably. ; Charge cards don’t have a published credit limit. For example, if you pay off your charge card balance every month, then your credit score is likely to increase. Most notably, charge cards do not factor into your credit utilization ratio (the amount of debt you have compared to your overall credit limit) because they don’t come with a credit limit. Similarly, if you miss a charge card payment, then your credit score will take a hit. Debit cards: Debit cards don’t affect your credit history. The institution behind the card has nothing to do with if it is a credit card or a charge card. Both types of store credit cards usually charge higher interest rates than regular credit cards. 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