Charge Cards

In the chart below you will see a selection of charge cards for you to compare. Charge cards are a type of credit card, yet with higher or no credit limits – giving you greater financial freedom. The balance on charge cards must be paid off at the end of each month, so make sure you have considered whether you could afford to deal with charge cards. Most providers of charge cards will have a strict set of requirements which you must pass in order to receive charge cards. This may include having an excellent credit score – find out the terms of charge cards before you make your application. Use the chart to compare the main benefits of each offer. Charge cards are easy to apply for but make sure you always read the small print.

A Charge Card can be an excellent alternative to a credit card but make sure you know the facts before you apply.

What is a charge card?

A charge card is very similar to a credit card in that you can make purchases almost anywhere using the credit provided by the company which provides you with the charge card. However, unlike a credit card, the outstanding balance of a charge card must be paid out in fill each month. Charge cards give you the financial flexibility of no pre-set spending limit

What are the advantages of a charge card?

Not all charge cards have a credit limit so you are often able to make far larger purchases with a charge card in comparison to what you would be able to purchase with a credit card. Credit cards usually do have a limit and if you go beyond your credit limit there are a likely to be expensive penalty fees to pay.

You don’t have to pay any interest with charge cards which can be a good advantage. However if you do not pay the balance back in time during the correct period you may face a late fee which could be expensive. Charge cards can often come with additional benefits such as insurance, extended warranty, 90 day purchase protection and much more.

What are the disadvantages of charge cards?

Charge cards often have an annual fee which can be expensive. Charge cards are often not as flexible as credit cards. For example usually it is not possible to perform a balance transfer or withdraw cash with a charge card. In most circumstances you need a really high credit score in order to get a charge card. American Express issues more charge cards than any other company.

Finding a Charge Card

You are more likely to be approved for a charge card if you have a very good credit score. It is important that you take the time to research the market to find the card that best suits you and your finances. Use the table above to compare different charge cards looking at all the main features and any additional benefits. Before applying make sure you read the terms and conditions fully, are aware of any fees involved and that you understand what the consequences are of missing payments. Don’t be afraid to ask the card provider any questions you may have before you apply.