If you’re looking for an easy way to pay goods and services without having to pay the interest charges associated with credit cards then a charge card or amex charge card could be perfect for you.
The charge cards UK providers offer work in a different way to traditional credit and debit cards. So, it’s important that you know the differences before you sign up.
There are also lots of charge cards to choose from so it’s important you pick the right one for you.
What is a charge card?
In many ways, charge cards are like credit cards. You can pay for goods and services online or on the High Street using the card and there are also charge cards for use abroad.
However, unlike credit cards, charge cards require you to pay your balance off in full at the end of the month. You can’t roll over some of your balance to a subsequent month as you can with a credit card.
American Express are one of the largest charge card providers in the UK and like all other providers whilst they don't require you to pay any interest on your amex charge card you will generally pay an annual fee.
This is the main cost that you're likely to face when you use a charge card.
What to look for when you choose the best charge card for you
When you’re looking for the best charge card you should take the following factors into consideration:
- Annual fee
- Cash advance fees and international charges
- Perks and rewards
While you don’t pay any interest on the balance of your card, charge cards UK providers offer generally have an annual fee. This differs between cards so always shop around for the best value plastic.
In addition, the fees you will incur for using your charge card for cash advances or for using it abroad will also differ. If you travel a lot and need charge cards for use abroad make sure you pick one with competitive fees.
Many of the best charge cards for business and personal use also come with a range of perks and rewards. Based on your card spending you can often benefit from a reward scheme, travel insurance, free flights or other perks.
While these rewards are attractive, make sure you don’t select a charge card with higher fees simply to take advantage of these benefits. You may be better taking out a card with lower charges as this could save you significantly more in the long term.
