What is a charge card and why use one?

A charge card is a credit card that requires the balance to be paid in full every month.

Many people use charge cards because they force more disciplined spending than credit cards. Because charge cards require payment in full each month, consumers cannot adopt an "I'll pay for it later" type of approach and continue to amass more and more debt. If they do not pay their balances in full by a specific time (usually within 25 days of the bills arrival) they cannot make any more purchases.

Additionally, many people enjoy the rewards and exclusivity garnered from charge cards. Users often earn points on their purchases and receive other perks like concierge service and discounted tickets to concerts and sporting events.