Charge Card
A card requiring full balance payment each billing cycle.
Detailed Description
Charge Card
What is a charge card?
A charge card is a payment card that requires the cardholder to pay off their balance in full each billing cycle, without a preset spending limit.
How do charge cards differ from credit cards?
Charge cards require full payment each month, while credit cards allow carrying a balance with interest; charge cards often have no preset spending limit.
What are the benefits of using a charge card?
Benefits include no interest charges, attractive rewards programs, and premium services like travel insurance and concierge services.
What are the drawbacks of charge cards?
Drawbacks include the requirement to pay the full balance monthly, higher annual fees, and potential for overspending without a preset limit.
What is required to qualify for a charge card?
Applicants typically need a good to excellent credit score, along with personal and financial information for a credit check.