Charge cards are no longer considered with respect to credit utilization starting with FICO Score 8 (they aren’t considered by VantageScore, either). 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 don’t have a published credit limit. Debit cards: Debit cards don’t affect your credit history. Charge Cards and Your Credit Score. 3. 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. Charge cards and credit scores. Every time you move, apply for a job, even rent a car, your FICO credit score is checked. There are also several key differences between a charge card and a credit card. Like most credit applications, applying for a charge card will appear as a new inquiry on your credit report, which may temporarily lower your score a few points. Credit cards: Credit card companies report your utilization ratio and payment history, which both affect your credit score. Credit scores are an unavoidable part of life. For example, if you pay off your charge card balance every month, then your credit score is likely to increase. Similarly, if you miss a charge card payment, then your credit score will take a hit. Similar to using credit cards, your charge card usage can have an impact on your credit score. People often use the terms charge card and credit card interchangeably. Credit reporting: Charge cards: Your payment history is reported to credit reporting agencies, but charge cards don’t factor into credit utilization ratios. American Express charges annual fees as high as $550. Both types of store credit cards usually charge higher interest rates than regular credit cards. Because charge cards work a bit differently than credit cards, they have a slightly different effect on your credit score. The Dillards American Express is listed as a credit card. 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. 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. While charge cards don't come with an interest rate, credit cards always do, and it's often high. There are two major scoring differences between charge cards and credit cards, and both relate directly to revolving utilization (also known as credit utilization):. 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