What is a charge card?
A charge card is an alternative to a credit card. If you want greater freedom with your spending, a charge card can provide this because, unlike with a credit card, there is no spending limit, so you can spend as much as you want. However, in return you must pay off the balance in full by the date agreed with your card provider, as there’s no option to spread the payments over several months, as you would with a credit card.
Because you have to pay your charge card off in full every month, there’s no interest rate attached to it, which can make your spending cheaper than with a credit card. However, many charge cards come with an annual fee attached, so take this into account when considering whether it’s the right option for you.
Simply put, whether you decide to take out a credit card or a charge card will come down to your own spending preferences. If you like to clear your balance in full when your bill arrives and are comfortably able to do so, a charge card could be perfect for you. However, if you prefer to have the option of paying back your borrowing in regular instalments you know you can afford, a credit card is probably a safer bet.