Charge Cards

When you look at a charge card vs. a credit card, the most important difference is that charge cards don’t allow you to carry a balance between months, while credit cards do. Both types of cards allow you to buy now and pay later, but charge cards require that payment to be for the full amount you owe at the end of the billing cycle. Traditional credit cards require you to pay just a portion of your balance by the due date each month to keep your account in good standing.

It’s important to note that a charge card actually is a type of credit card – just a unique one. Charge cards and other credit cards are different in more ways, too. For example, charge cards are more likely to have no preset spending limit. That doesn’t mean you have no limit, just that you won’t know your limit.

It’s good to be aware of all the major similarities and differences between charge cards and credit cards so you can make an informed decision about which to get.

Charge Card vs. Credit Card:

One more major difference between charge cards and other credit cards is the consequence of not paying your monthly bill in full. With a credit card, if you don’t pay in full but make the minimum payment, you’ll just owe interest on the remaining balance. But if you don’t pay a charge card in full-, you’ll get hit with steep late fees and may be unable to make new purchases until you pay your balance.

Some charge cards do have short-term financing. For example, American Express has a feature called “Pay over Time” on some of their charge cards. That lets you carry a balance between months on certain charges of $100 or more. You must also call Amex and have them approve the charge as “pay over time” after you make it. There is no overall time limit to pay your charges back, but you will have a monthly minimum payment. Not all cardholders are eligible.

Now that you’re familiar with the fundamental differences between charge cards and credit cards, you can take a look at some of the best that both types have to offer.

Best Charge Cards vs. Best Credit Cards

Overall, credit cards tend to be better than their charge card counterparts for most people. Credit cards provide financing capabilities, for one thing, and some of them are much easier to obtain. Charge cards can be very attractive to a certain segment of the market, though – people with good or better credit who always pay in full and want premium rewards.

Many people refer to store cards as charge cards. It’s common to hear reference to a Walmart charge card, a Kohl's charge card or a Target charge card as a result. But store cards are credit cards on which you can carry a balance from month to month, not charge cards whose balance must be paid in full each month. A good rule of thumb to remember is that if it has an interest rate, it's not a charge card.

There are no charge cards for bad credit.

Unfortunately, if you have bad credit, your credit card options are limited and at the present time to secured credit cards and unsecured credit cards for bad credit.

The Discover it Secured might be your best option. No annual fee and rewards.

The two most important factors to consider when selecting a charge card are the rewards and the annual fee.

In addition to earning points on your spending, some charge cards offer relatively extensive additional benefits such as a 24/7 concierge service, discounted tickets to concerts and sporting events, and airline and hotel perks. However, the more rewards a card provides, the higher its annual fee will likely be.

So before applying for any charge card consider whether you will truly make use of its additional benefits. If you expect to only take advantage of the points earned on purchases, concentrate on finding the charge card with the lowest annual fee.

A charge card with No Preset Spending Limit is one that does not have a pre-determined credit line. This does not mean that consumers will be able to spend limitlessly with No Preset Spending Limit credit cards and charge cards though.

An issuer uses various factors including your income, credit score, payment history and spending patterns in order to determine how much money you can spend in a given month. This amount may change from month-to-month and you may not be able to find out what it is.

There are benefits to using both charge cards and debit cards. Charge cards allow you to build credit history and do not require immediate payment for purchases, which provides both flexibility and added protection from fraud. You must simply pay your balance in full at the end of each month in order to retain purchasing privileges and avoid late fees.

Additionally, charge card accounts provide far more lucrative perks and rewards than do debit cards. The only benefit that a debit card has over a charge card is that it makes it impossible to spend more than you can afford. Therefore, you should only use a debit card if you seek this type of inherent discipline.

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.

There are no charge cards on the Visa network. Only American Express offers charge cards in the U.S. right now. Charge cards are a special type of credit card where you must pay the balance in full each month. All the Visa credit cards are regular credit cards that require only a minimum monthly payment.

You can carry the remaining balance to the following month, but in most cases, you’ll pay interest on the unpaid balance. You do have the option of paying a credit card’s entire balance each month to avoid interest charges.

There aren’t any Capital One charge cards. All Capital One credit cards allow users to carry a balance from month to month. A charge card requires full payment by the due date each month, with some minor exceptions on some cards. If that’s what you want, try Amex Platinum or Amex Green.

You should really use all Capital One rewards cards like a charge card, though. They have high regular APRs, like rewards cards from any issuer, so you don’t want interest to rob your rewards.

There are no Chase charge cards. A charge card is a type of credit card where the cardholder must pay off the balance in full every month. Chase does not offer any cards that meet this description. All Chase credit cards allow the cardholder to carry a balance between months in return for paying interest. American Express is the only major credit card issuer that currently offers charge cards. Chase does have a range of excellent regular credit cards, though.

Best Chase credit cards to pay in full every month:

• Chase Sapphire Preferred® Card
• Chase Sapphire Reserve®
• Ink Business Preferred® Credit Card
• Chase Freedom Unlimited®
• Chase Freedom®
• British Airways Credit Card

Even though Chase cards don’t make you pay in full every month, you can still say that you “charge” purchases to your Chase credit card. Chase cards can also be used to make a “charge” indirectly through Chase Pay. The app lets you make purchases without swiping, dipping or waving your card, but the purchases still get charged to your account like normal.