Charge Cards can offer you the benefits of credit cards with no credit limit.
What is a Charge Card?
Charge cards are different to credit cards because they give you financial flexibility and no pre-determined spending limit. You can still use the card as you would any other credit card, making purchases online, over the phone, in shops, restaurants and they have worldwide acceptance. But with a charge card you must make sure that you pay off the balance in full each month.
What are the benefits of a charge card?
Charge cards can aid you in rebuilding your credit rating if you have had financial difficulties in the past
As many charge cards do not come with a set credit limit you are able to buy almost anything and make far more significant purchases in comparison to what you would with credit cards which have set spending limits. You will not have to deal with expensive fees for going over your credit limit in the way that you would with a charge card.
There are a huge variety of rewards that you can earn with charge cards including discounts and offers in a variety of outlets, airmiles and deals on hotels .A lot of charge cards also often come with additional benefits such as insurance, extended warranty, 90 day purchase protection and much more.
What are the risks?
The annual fees associated with charge cards can be expensive which may put some people off. However, many feel that the benefits outweigh this. You may also find that charge cards are not as flexible as credit cards as you may not be able to withdraw money from an ATM with a charge card.
Finding the right Charge Card?
You are more likely to be approved for a charge card if you have a very good credit score.
It is important that you shop around and take the time to research the market to find the card that best suits you. Use the table above to compare different charge cards. Before applying make sure you read the terms and conditions fully, are aware of any fees involved and that you understand what the consequences are of missing payments.