Should I Get a Charge Card?

07 April 2011 - Which Way To Pay

Should I Get a Charge Card?

A charge card is a type of credit card, so just what do they offer and should you be considering one?

Charge cards are fairly popular in Canada and the US, and carry most of the main features of a regular credit card:

- More financial flexibility
- Pay anywhere at home or abroad – and online
- Easy to monitor for fraud
- Security

A charge card has a few major differences to a normal credit card.  Firstly, there is no rolling credit aspect – instead, the card holder must pay off the card balance in full at the end of each month.  They may not carry balance forward into the next month.

Many charge cards carry no credit limit – that means unlimited spending throughout the month, as long as the card holder can then pay the full bill once the month comes to an end.  Some charge cards do have a credit limit, but they are usually very high.

Not surprisingly, charge cards are oftentimes aimed at the ‘luxury’ consumer, due to the high spending power involved.  Some are offered only to people with very high income levels and your credit rating must be of the highest standard to get one.

If you are in a lower income bracket, why not consider a reward card instead?  They carry all the features of regular cards but with additional reward schemes.  Compare charge cards and other types of credit cards on Which Way To Pay today!