CHARGE CARDS INFORMATION

Please see information below on Charge Cards.

Charge Cards
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Charge Cards

For a new way to look at spending and saving, consider charge cards – the alternative to traditional credit cards.

What are Charge Cards?

Charge cards are just the same as credit cards, right? Wrong. Charge cards are not exactly the same as credit cards, because they do not offer the holder a line of credit. Put simply, with a charge card you must pay your balance off in full at the end of each month.

Most credit cards allow you to carry a balance from one month (or billing cycle) to the next – you will have to pay interest on that balance. In most cases you will also have to pay at least a part of your balance each month.

Charge cards do not allow you to roll your balance over to the next month. As you are unable to carry a balance you will not be subject to an annual or periodic percentage rate.

Who Can Apply?

Charge cards are often associated with exclusivity – the American Express Centurion Card is the most famous example of a charge card that is only available to high-earning customers that also have an excellent credit rating (annual fee of $2,500 plus a joining fee of $5,000).

However there are plenty of excellent charge cards on the market which are available to customers who aren't in the high income bracket. Use the comparison pages to find out which card could suit you – though you may have to fulfill some requirements, including:

Minimum age
Permanent resident of Canada
Minimum income
Good credit score

Credit checks are carried out on most regular credit card applications, and the same applies to charge cards. Make sure you have considered your decision carefully before you apply.

What are the Benefits?

There are plenty of benefits offered with charge cards – to begin with it is a bonus knowing that you are not subject to annual percentage rates and purchase rates. There are often other advantages, including special services or reward programs. You could receive free insurance, travel benefits or other great beneficial features.

Charge cards are great for people that don't wish to be stuck with a long-term debt. However, this card type does require good money management – if you fall behind on your card payments then you could be landed with high penalty fees. Some charge cards do carry special features which allow you to pay off your balance in installments.

What are the Disadvantages?

Charge cards carry many benefits but they do require careful management. If you cannot afford your monthly bill, you could face high penalty fees and of course a damaged credit rating.

You may also find that there are additional fees that are unattractive – so always make sure you compare carefully and choose wisely.