Find the best charge card

  - Want more from your flexible friend? A charge card can offer a rewarding alternative to credit cards, providing you repay your balance each month.
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Annual FeeMinimum IncomeAdditional InformationSearch all210 Credit Cards
 
American Express


Preferred Rewards Gold Card
None£20,000.00
  • Spend £2K in first 3 months for 20,000 bonus points
  • £125 annual fee, not charged in first year
  • Manage your card online
Details... 
American Express


The Green Card
£60.00£20,000.00
  • Virtually 1 point for every £1 spent
  • £60 anuual fee
  • Manage your card online
Details... 
American Express


The Platinum Card
£450.00£40,000.00
  • Virtually 1 point for every £1 spent
  • High cash withdrawal charges at 3% (min £3)
  • At renewal you can use points to pay card fee
Details... 
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Last Updated: Saturday 19 April 2014 00:20

Moneyfacts.co.uk Best Buys show the best products chosen by our independent experts. Where we have been able to we have also provided a link for you to apply online today. Products shown with a yellow background are sponsored products.

Disclaimer:
Fees and rates subject to change without notice. Check all rates and terms before borrowing. Assumptions have been made in calculating savings/costs. The figures should be used to illustrate potential savings and should be confirmed with credit card providers.

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What are Charge Cards?

A charge card lets you borrow money during the month for purchases or by withdrawing cash. Unlike a credit card, with a charge card you must clear this balance at the end of the month, in full. In this way they can be useful if you don’t want to get into debt as you can’t carry balances over from one month to the next.

Charge cards don’t advertise interest rates – as technically you don’t get charged interest. You will normally also face charges if you withdraw cash on a charge card, as well as if you use it for purchases or cash withdrawals abroad.

Charge cards don’t tend to have a credit limit, so it’s up to you to spend within your means. If you don’t clear your balance in full every month, you will have to pay late payment fees.

Because of way a charge card works, they are usually aimed at higher earners and/or those with a very good history of managing credit.

You’ll normally have to pay an annual fee, which can be quite hefty. However, this fee can be in return for a range of benefits that come with the charge card. You might also find that a reward scheme for spending on the card is offered as well.

If you use your charge card regularly and make the most of any benefits, it can be possible to get more value than you are paying on the annual fee.

Charge cards vs. credit cards

The main difference between a credit card and a charge card is that with a charge card you have to pay the balance off in full every month. With a credit card if you can’t or don’t want to pay the balance off in full, you don’t have to. However, even with a credit card you are required to make at least the minimum payment each month.

So, if you have a large purchase coming up, a credit card may be a smarter bet as you will have more than a month to repay what you borrow. If you take a 0% purchase credit card – providing that you are disciplined – you can spread the payments without being charged interest.

However, if you’d prefer not to have the worry about getting into debt, a charge card can be a good alternative to a credit card.

That said, a charge card requires more discipline than a credit card, as without a credit limit, you will need to monitor your spending to make sure you don’t always end up living a month ahead of your wages.

 

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