Best Charge Cards
A charge card is a card that allows an account owner to make purchases against a line of credit throughout the month and then requires payment to be made in full at the end of the month. Though the terms "charge card" and "credit card" are often used interchangeably, they are very different from one another in terms of how they are structured. Because you are required to pay your balance in full each month, you don't incur credit card debt nor pay interest on your purchases with a charge card. Some of the more popular charge cards are listed below.
The Business Gold Rewards Card® from American Express OPEN
| Intro APR | Intro Period | Regular APR |
| None | N/A | N/A [You must pay your balance in full each month] |
| Annual Fee | Balance Transfers | Credit Needed |
| $0 introductory annual fee for the first year, then $175 | N/A | Excellent |
American Express® Premier Rewards Gold Card
| Intro APR | Intro Period | Regular APR |
| None | N/A | N/A [You must pay your balance in full each month] |
| Annual Fee | Balance Transfers | Credit Needed |
| Introductory annual fee of $0 for the first year, then $175 | N/A | Excellent |
The Benefits of Charge Cards
What is a charge card? A charge card is a line of credit that is used to make purchases. The main difference between a charge card and a credit card is the lack of interest charged by the issuers of charge cards and the relatively higher account fees that they levy. What accounts for these differences? Well, charge cards require balances to be paid in full at the end of the billing cycle rather than allow the balance to be carried over into the following month. One of the most recognizable issuers of charge cards is American Express, who’s Gold and Platinum cards make up a large portion of the charge card population. But do note that other issuers such as Chase may carry charge cards as well. Here are some great features you'll get with a charge card:
- 0% Interest: While many credit cards offer 0% interest introductory rates, charge cards never charge interest on your balances. Why? Because you have to pay them off at the end of every month. This can make carrying a charge card infinitely cheaper than a credit card.
- Flexible credit limits: Most charge cards have very flexible terms when it comes to how much you can charge every month. This is mainly due to the fact that most charge cards are issued to individuals with very good to excellent credit.
- Rewards: In addition to providing flexible spending limits and 0% interest, most charge cards come with built in rewards such as free travel, free goods or services, or other member’s only opportunities.
Of course, carrying a charge card also has its drawbacks. Most come with a hefty annual fee. For instance, the American Express Gold Card charges its cardholders a $125 fee each year while Chase charges $95 a year. While most charge cards remain spending limit free, some issuers have chosen to start adding spending limits to their cards. But note that these limits are generally much higher than what's set for an average credit card.
Another drawback is acceptance. While the Chase Ink card is a Visa card and is accepted anywhere Visa is accepted, many merchants do not accept American Express. This makes using an American Express branded charge card a bit more difficult to carry and use. However, with this being said, there are enough merchants that accept American Express worldwide that having fewer choices is generally not a problem for most.
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