What is a Charge Card?

Electronic payments have taken purchases and payments to another level. And a Charge Card is one of those electronic payment cards that makes your purchases and payments easier than you can ever imagine. However, many of us are not sure what exactly it is and we keep searching What is a Charge Card?

In here, you will get to know what, precisely, a charge card is, how to apply for Charge Card, how is it different from a credit card; Charge Card Vs Credit Card, and what special Charge Card Benefits are there.

What is a Charge Card

What is a Charge Card?

A Charge Card is an electronic payment card with neither a spending limit nor an interest. However, cardholders have to pay the full balance in one payment, which is mostly monthly. Charge Cards authorize the cardholder to make an instant purchase and the balance needs to be paid om full. It is mandatory to pay the balance in full on the due date, monthly while using Charge Cards in order to avoid penalties or late fees.

  • No Spending Limit
  • No Interest
  • Need to clear debit | full balance each month
  • Late payment fees

Charge Card Benefits | Advantages

Having a charge card, either for individual usage or business usage, have plenty of advantages over credit and debit cards. Followings are the benefits of having a charge card;

  1. No interest rates
  2. No spending Limit
  3. Low annual fees
  4. No debt spiral
  5. Generous benefits points & rewards

For detailed benefits, and Charge Card Advantages & Disadvantages, please refer to the below article;

Charge Card Benefits- Pros & Cons of Charge Card

Charge Card Vs. Credit Card

Charge Cards and credit cards are two very different types of electronic payment cards and trust me, it is kinda hard to get charges, even than a credit card. However,  There are some likenesses in both the types of cards, but can be differentiated with the following;

Credit Cards Charge Cards
Preset Spending Limit Fixed spending limits and varies as per credit score. No spending limits.
Interest Rates Decided interest rates; varies as per cards. No interest rates.
Payment Methods Can pay in EMIs (monthly installments). The full balance must be paid in one payment, usually monthly.
Late payment fees Yes, there will be late payment fees. Yes, late payment fees are applicable.
Yearly/Annual Fees Yes, there is a fixed yearly or even monthly charges. Yes, yearly charges are there.
Credit Score Late payments will affect your credit score and it might be difficult to get loans in the future. No, it won’t affect your credit score.

Moreover, for the better understanding of the difference between a Charge Card & a Credit Card, please refer to the below article and assist yourself.

Charge Card Vs. Credit Card

How to Apply Online

To get a Charge Card, it is mandatory to need the prequisites such as;

  • One must be a legal residents of the United Kingdom.
  • Besides, applicants should be at least 18 years (some card issuers might ask 21 years).
  • Also, one must be employed or business holder.

Once you meet the requirements, please follow the simple procedure to get yourself a right Charge Card;

How to get a Charge Card?

  1. Select the issuer (company/enterprise) from whom you would like to have a card.
  2. Select the right card for you.
  3. Proceed for the card application online with satisfying documents.
  4. Complete the application and get your card.

People also ask;

  • What is a charge card and how does it work?
  • What is the point of a charge card?
  • Is charge card same as credit card?
  • Amex Charge Cards
  • What are charge cards examples
  • Is Visa a charge card?
  • Are charge cards easier to get?

Final Words

Hopefully, this article helped you comprehending what is a Charge Card, and how to get a Charge Card. Also, if you are still not sure how to which is the best charge card for you, please ask us in the comment box. And we will surely assist you with the list of charge cards and help you select the right now.

Reference:

  • https://www.americanexpress.com/au/credit-cards/about-credit-cards/what-is-a-charge-card/
  • https://inkismyperfume.com/
  • https://inkismyperfume.com/charge-card-vs-credit-card/
  • https://inkismyperfume.com/charge-card-benefits/
  • https://www.forbes.com/advisor/credit-cards/charge-card-vs-credit-card/

Leave a Comment