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A charge card is a means of obtaining a very short term (usually around 1 month) loan for a purchase. It is similar to a credit card, except that the contract with the card issuer requires that the cardholder must each month pay charges made to it in full—there is no "minimum payment" other than the full balance. Since there is no loan, there is no official interest. A partial payment (or no payment) results in a severe late fee (as much as 5% of the balance) and the possible restriction of future transactions and risk of potential cancellation of the card. In contrast, a credit card is a revolving credit instrument which does not need to be paid off in full; no late fee is charged as long as the minimum payment is made, which carries a balance forward as a loan charging interest. Many people are not aware of this distinction however, and often the two terms are used interchangeably to describe any card which can be used as payment. Many charge cards have the option for its users to pay for some purchases over time. American Express charge card customers, for instance, can enroll in the Extended Payment Option (internally referred to as EXPO) to be able to pay for purchases over $200 over time,[1] or in Sign & Travel to be able to pay for eligible travel-related expenses over time.[2] In 1914, Western Union offered the first charge card for consumers.
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Charge Card Subcategories
Charge Card Articles
Avoid Overpaying For Credit Card Charges
by Devora Witts
Dec 09, 2008
Nobody likes to overpay on anything and least on credit card fees or charges. There are few things that people hate more than purchasing something and l...
Why Does United First Financial Charge So Much?
by Steve Herman
Aug 19, 2007
Alot of attention has been brought to United First Financial about their strategy to pay-off a mortgage in one third the time. The company seems to be bringing in many affiliates to help share this information to consumers on how to become mortgage f...
How To Fight Late Charges
by Joe Hanoa
Sep 24, 2006
You paid your credit card on time, perhaps as long as one week before it was due. The next month you check your statement and see a $39 charge for a late payment. Angered, you call the credit card company and learn that the payment was credited to ...
Mortgage Brokers - Best Service Tips
by Samantha Anniston
Apr 06, 2006
Most of us have been there before, looking to buy a new home. Can you picture the situation now? You see a photo in the estate agents window, and you nip in for a schedule. As soon as the agents know you’re looking to buy a property, they will offe...
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