The Benefits of a Charge Card

There are benefits to owning a charge card, regardless of all the discussion around how evil they are. If a charge card is used appropriately, it can be extremely helpful to a household. A charge card is very similar to a credit card but it is important not to confuse the two. A charge card has to be paid in full at the end of each month. Some examples of charge cards are American Express, Diners Club cards and some gold cards.

Paying the Balance in Full

Paying your balance in full on a monthly basis is helpful in avoiding finance charges or other charges that would accrue if you used a credit card. It is important to remember not to charge more than you can afford to pay at the end of the month as the penalty charges will be higher than a credit card, making a benefit a consequence. This is also helpful in budgeting on a monthly basis how much you can afford to spend. Aside from budgeting, having your monthly charge card statement allows you to track your spending and if you need to cut costs you will be able to see where you can do so.

No Limit

Another benefit to having a charge card is that there is no limit amount placed on how much you can spend. As long as you are disciplined enough to pay off your card at the end of the month, then this is a convenient feature to have. This is extremely helpful in emergency situations because it allows you some freedom you may not otherwise have. 

Easy Purchasing

Having a charge card makes purchasing very convenient in many ways. You are now able to make purchases online instead of having to stand in line at a retail store during the holiday season. You can also receive privileges, depending on the card, that include free travel insurance, extended warranties, purchase protection or access to business lounges in airports. Charge cards allow travelers to be comfortable no matter where they go, whether business or pleasure. You can also use your charge card for everyday necessary purchases, such as gas, to avoid bank charges from using your debit card. Lastly, having a charge card for purchases decreases the amount of money you need to carry on you.

Having a charge card is a personal choice in many aspects. It is important to evaluate your ability to budget your finances and make a monthly payment. With a charge card the fee is annual which can be easier to budget but difficult to pay as a larger sum. If you are a person that is unable to pay their bills on time or always ends up short at the end of the month, then a charge card may not be for you. Take the time before making a decision to think about what will work in your best interest.

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