A woman using contactless payment with a credit card to pay at a restaurant.

What is a Charge Card?

6 min read
Published September 3, 2025

Key Takeaways

  1. A charge card doesn’t have a set credit limit. Instead, you pay your balance in full each month.
  2. Like traditional credit cards, charge cards affect your credit score as long as your activity is reported to a major credit bureau.
  3. Your charge card balance won’t accrue interest charges, but late payment fees are typically very expensive.

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