Do charge cards still exist?

Yes, charge cards do still exist. Charge cards are currently offered by high-end credit card brands such as American Express, though they are reserved for consumers and small business owners with good or excellent credit. The best ones offer generous welcome bonuses, high reward rates on purchases, and in some cases, $0 annual fees.

Examples of Popular Charge Cards

A charge card is a rare type of credit card that generally requires the cardholder to pay the entire balance each month. However, the category has evolved to include hybrid cards that allow cardholders to pay for certain purchases over time with interest. In addition, charge cards usually don’t have preset spending limits, while most regular credit cards come with a specific limit on how much you can charge to the account.

Key Things to Know About Charge Cards

Most charge cards require payment in full every month.

Cardholders must pay off their statement balance each billing period, in most cases. Some charge cards may assess a late fee and a higher APR on unpaid balances, in addition to restricting spending privileges until a payment is made.

There is usually no preset spending limit.

Charge cards with "no preset spending limit" can adjust your spending power from month to month, based on how you use the card. There’s still a spending limit, but you might not know exactly what it is. That does not mean unlimited spending, though. 

Charge cards report to credit bureaus and affect your credit score.

Charge cards report your account activity to the credit bureaus, so how you manage your charge account will directly affect your credit score.

If you’re not sure where your credit stands, you can check your score for free right here on WalletHub.