Classic credit cards, such as Visa, MasterCard, Discover, and American Express Blue, let you charge purchases up to your credit limit, a specific dollar amount that may be increased over time, if you’re using your card responsibly.

You’re required to pay the minimum amount of your outstanding balance every month, though you can always pay more than the minimum if you want. If you pay less than the minimum, be prepared to pay a penalty fee in addition to your balance. If you consistently underpay for several months, your debt will mount and your borrowing privileges may be cut off.

Charge cards, such as American Express, Diners Club, and Carte Blanche, work a little differently. There’s no predetermined credit limit, though you have to pay off whatever you spend each month. If you don’t, you will incur a finance charge. And you may find your account frozen so that you’re unable to use your card for additional purchases.

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