American Express is one of the world’s most iconic financial services names. For over fifty years they have been offering American Express charge cards which offer a wide range of perks and benefits.
But how do American Express charge card UK products work? And what do you look for when you undertake an Amex charge cards comparison?
How do American Express charge cards work?
American Express cards work in a very similar way to a traditional credit card.
You can buy goods and services online or in shops that display the American Express sign. You will then receive a bill at the end of every month detailing what you have spent on your card.
However, the main difference between a charge card and a credit card is that you have to pay your Amex charge card balance in full every month. You can’t pay part of your bill and roll over a balance like you can with a credit card.
There are several types of American Express charge cards available. The Amex gold and Amex platinum charge card are two of the most popular.
How to find the best Amex charge cards UK offers
When you’re looking for the best Amex charge cards UK offers you should compare the following factors:
- Annual fee
- Other fees and charges that may apply
- Any minimum income requirements
- Whether an Amex charge card UK rewards scheme applies
As you have to pay your card balance in full every month, you don’t pay any interest on American Express charge cards. Instead, you will often find that you pay an annual fee for the privilege of holding the card. Make sure you compare fees before you sign up as these can represent a substantial cost.
In addition, you may find that the Amex gold and Amex platinum charge card also levy charges for cash advances and international transactions. Again, always shop around for the best deal for you before you apply for a charge card so you're not caught out.
Furthermore, many of the American Express charge card UK deals have a minimum income requirement. Be careful not to apply for the wrong card if you don’t meet the income criteria as your application will simply be refused.
Finally, it is worth shopping around to compare the Amex charge card UK rewards schemes that are available. These schemes award you points every time you use your card and you can then redeem these points for benefits including flights, gifts and vouchers. Many charge card schemes also offer additional perks such as a concierge service or free travel insurance.
However, you shouldn't base your decision on these perks alone, but instead look at which charge card will work out most cost effective for you.
