shopping for a credit card

Store, Premium, and Charge Cards

Store credit cards can only be used at a specific chain of stores or for a specific purpose (i.e., Sears, Lowe's, Exxon, etc.) Premium cards, such as Gold and Platinum Cards, are credit cards that offer perks or benefits, such as cash-back options, free airline miles, or insurance coverage. They also may have a lower interest rate than standard credit cards. What are charge cards?

  1. Those that allow you to charge an unlimited amount.

  2. Those that do not have interest charges, because the balance must be paid in full each month.

  3. Cards that cannot be used to make gasoline purchases.

"B" is correct. American Express traditionally has offered this type of card. Charge cards often require an annual fee.