Charge Cards
A charge card works the same way as a normal credit card except that the balance must be paid off in full every month, rather than paid off at leisure. The card can be used to purchase items in shops, over the phone or on the internet and can often also be used to withdraw cash. These types of card are often used by businesses or are sometimes offered to people who might have a bad credit history. Conversely, they are also used by the affluent who might want to take advantage of the limitless credit such a card offers.
As the credit is revolving credit (i.e., the balance is not carried forward to the next month), if the balance is not paid in full each month as agreed then the user can incur heavy penalties. American Express is one of the most famous brands of charge card used in the UK today.
