Charge Credit Cards & Controlling Your Debt - Articles

A charge card is a credit card that must be paid in full when the bill comes. Instead of a minimum payment and the option to roll your balance over from month to month, the balance on a charge card is due all at once each month. This is similar to many other bills, such as an electric bill, cable bill, or rent payment. Some charge cards don't have a pre-set spending limit. This means that the card issuer has not assigned a specific limit to your account. While this does not mean that you can spend a million dollars on the card, it does give you a bit of flexibility.

There are two important things to keep in mind when using a charge card with no pre-set spending limit. The first is that you may have to get permission before you can complete large purchases, which can be time consuming and even embarrassing for some, especially if the charge is declined. Second is that you will have to pay the entire bill when it comes, so make sure that you can cover all purchases that you make instead of going wild just because you have no pre-set limit.

There are some great things about having a charge card as opposed to a credit card. This first is that you don't have to constantly deal with interest and interest rates; but, if you default on a payment, the card issuer may add interest to the balance until you pay it off. This is why it is good to know the potential interest rate on the card, even though it is a charge card.

Another great thing is that you won't put yourself further and further into debt on the card. You know that the balance is due and if you don't pay the balance, you have a good shot at having your card shut down. This is a lot different than credit cards that allow you to pay a small minimum payment, allow you to keep using the card, and keep piling more and more interest onto your debt.

So, a charge card can help you stay out of major debt (unless you go on a shopping spree one month and your card issuer does not decline the card at some point) and can help you learn to manage your finances, since you will have to learn to spend what you are able to pay back and pay the bill in full each month. These are two great financial advantages that will help you down the road. Even so, a charge card can offer you more than that.

Many charge cards also have a rewards program, just as many credit cards do. A charge card rewards program also works just like any other credit card rewards program. The charge card reward you receive will depend on your preferences and the reward selection offered by your charge card company.

American Express offers several great charge cards, some of which also offer a charge card rewards program. Two of their most popular charge cards are the American Express Preferred Rewards Green card and the American Express Preferred Rewards Gold card. Both of these cards offer a great charge card rewards program.

With the American Express Preferred Rewards Green card, you can earn one reward point for every dollar you spend. You can then take those points and trade them in for things like frequent flyer miles, which is one mile per point (so you will basically get one mile for every dollar you spend). They even give out bonus points after the first purchase when they have a promotion running.

The American Express Preferred Rewards Gold card also offers a variety of great rewards for you to take advantage of. They even offer some rewards that are exclusively for Preferred Rewards Gold cardholders through their Gold Card Event program. The events that are part of this rewards program are not offered to American Express Preferred Rewards Green cardholders or through any of their other rewards programs.

Both cards also offer services that help protect you, your card, merchandise that is purchased with your American Express card, and your money. Such programs include fraud protection, to ensure that you will not be held liable for unauthorized purchases made with your card and the Purchase Protection Plan, which will protect you if an item that is purchased with your American Express card is stolen or damaged within 90 days of purchase. So, what can be better than all of that? The fact that they don't put a cap on how many points you can earn each year, as some credit card rewards programs will, and your points never expire. This means that you can continue to accumulate points for the rewards you want, no matter how long it takes you.