Charge card意思

"Charge card" is a term that refers to a type of credit card that was more common in the early days of credit cards. Unlike modern credit cards, which typically have a revolving credit line and a due date for repayment, charge cards require the balance to be paid in full each month.

Here are some key points about charge cards:

1. Full Payment: Charge cards require the cardholder to pay the full balance each month, rather than making minimum payments.

2. No Pre-Set Limit: Charge cards often do not have a pre-set credit limit, but instead, the cardholder's spending limit is determined by their creditworthiness and the issuer's discretion.

3. Higher Spending Limits: Charge cards may offer higher spending limits than traditional credit cards, as they are designed for individuals who manage their finances well and can pay off their balance in full each month.

4. No Interest Charges: Since charge cards require the balance to be paid in full, there are typically no interest charges. However, late payment fees or other penalties may apply.

5. Prestige and Exclusivity: Charge cards are often associated with prestige and exclusivity, as they are not widely available and may be more difficult to obtain.

Examples of charge cards include the American Express Centurion Card (also known as the Amex Black Card) and the J.P. Morgan Reserve Card. These cards are typically targeted at high-net-worth individuals and come with a range of premium benefits and services.

In modern usage, the term "charge card" is less common, and the distinction between charge cards and traditional credit cards has become less clear. Many credit cards now offer the option to pay the balance in full each month, and some charge cards have evolved to include features similar to those of traditional credit cards.