Charge Accounts
- Loans for goods or services that must be paid in full upon presentation to the debtor.
- No grace periods, no minimum payments.
- These accounts vary greatly in regards to fees or charges for maintaining the account.
- Generally a charge account is an unsecured debt
Many have no additional cost if the account is kept in good standing by paying in full upon receipt. These can include merchant accounts, wireless phone bills, gasoline cards, diners or travel cards. Rent-to-own store accounts are actually in this form of credit.
This is a complicated area of law and an attorney should be consulted on all matters relating to bankruptcy. The information on this website is provided with the understanding that the authors and publishers are not herein engaged in rendering bankruptcy, legal, insolvency, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional bankruptcy, insolvency, tax, legal or other competent advisors. While we have made every attempt to ensure that the information contained in this website has been obtained from reliable sources, Credit Advisors Foundation and Arbor Investment are not responsible for any errors or omissions, or for the results obtained from the use of this information.