Charge Cards vs. Credit Cards: Key Differences And Which One Is Right For You?

Charge cards and credit cards may seem similar, but they function differently in key ways that impact spending, payments, and rewards.

1. Payment Requirements

• Charge Cards: Require the full balance to be paid each month. Some have a “Pay Over Time” feature for select purchases.
• Credit Cards: Allow carrying a balance, with interest charged on unpaid amounts. Note, for individuals, if you will incur interest on your purchases, reconsider having a credit card and consider a debit card.

2. Spending Limits

• Charge Cards: No preset spending limit, though purchases are approved based on financial history and spending patterns.
• Credit Cards: Have a set credit limit.

3. Interest Charges

• Charge Cards: No interest since full payment is required, but late fees apply.
• Credit Cards: Interest is charged on carried balances.

4. Rewards & Perks

• Charge Cards: Premium perks, strong travel and business rewards.
• Credit Cards: Reward structures vary, offering cashback, travel points, or business benefits.

5. Annual Fees

• Charge Cards: Higher annual fees, but benefits can offset the cost.
• Credit Cards: Fees range from $0 to premium levels.

Charge Cards & Premium Business Cards That Are Like Charge Cards

These cards offer top-tier rewards, travel perks, and flexibility, making them ideal for high spenders, business owners, and frequent travelers.

American Express Charge Cards

1. American Express® Green Card

• Best For: General travel and everyday spending
• Earning Rates:
  • 3X points on travel (including flights, hotels, transit, and rideshares)
  • 3X points at restaurants
  • 1X points on other purchases
• Key Benefits:
  • $199 CLEAR Plus credit (expedited airport security)
  • $100 LoungeBuddy credit for airport lounge access
  • No foreign transaction fees

2. American Express® Gold Card

• Best For: Dining and groceries
• Earning Rates:
  • 4X points on restaurants (on up to $50,000 per year, then 1X) and U.S. supermarkets (on up to $25,000 per year, then 1X)
  • 3X points on flights booked directly with airlines or Amex Travel
  • 1X points on all other purchases
• Key Benefits:
  • $120 dining credit ($10 per month at select restaurants and food delivery services)
  • $120 Uber Cash ($10 per month for Uber rides or Uber Eats)
  • $84 Dunkin credit ($7 per month)
  • $100 Resy credit ($50 every 6 months and you do NOT need to make the reservation thru Resy to get the credit, you just need to happen to be dining at a restaurant that is in the Resy system.

3. American Express® Business Gold Card

• Best For: Businesses with high spending in key categories
• Earning Rates:
  • 4X points on the two highest spending categories per month (from a select list, up to $150,000 per year, then 1X)
  • 3X points on flights booked through Amex Travel
  • 1X on all other purchases
• Key Benefits:
  • No preset spending limit
  • Expense tracking tools

4. The Platinum Card® from American Express

• Best For: Luxury travel perks
• Earning Rates:
  • 5X points on flights booked directly with airlines or Amex Travel (on up to $500,000 per year)
  • 5X points on prepaid hotels booked through Amex Travel
  • 1X points on all other purchases
• Key Benefits:
  • $200 airline fee credit per year
  • $200 hotel credit on Fine Hotels & Resorts bookings
  • $120 Global Entry/TSA PreCheck credit
  • $240 Entertainment credit
  • $200 Uber Cash ($15 per month, with $35 in December for Uber rides or Uber Eats)
  • $100 Saks credit
  • Lounge access (Centurion, Priority Pass, Delta Sky Club)

5. The Business Platinum Card® from American Express

• Best For: Business travelers wanting premium perks
• Earning Rates:
  • 5X points on flights and prepaid hotels booked through Amex Travel
  • 1.5X points on eligible purchases of $5,000+ (on up to $2 million per year)
  • 1X points on all other purchases
• Key Benefits:
  • $400 Dell credit ($200 semi-annually), note this is ending on June 30, 2025.
  • 35% airline bonus on points redemptions for business-class or first-class travel

6. The Plum Card® from American Express

• Best For: Businesses needing flexible payment terms
• Earning Rates:
  • 1.5% discount for early payments
• Key Benefits:
  • No preset spending limit
  • Up to 60 days to pay with no interest

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Charge Cards

Chase Charge Cards

7. Ink Business Premier® Credit Card (Technically a credit card, but operates like a charge card with no preset limit)

• Best For: Businesses with high expenses
• Earning Rates:
  • 2.5% cash back on purchases of $5,000+
  • 2% cash back on all other purchases
• Key Benefits:
  • No preset spending limit
  • Cell phone protection coverage
  • Best for businesses that spend big and want cash back instead of travel rewards

Capital One Charge Cards

8. Capital One Spark Cash Plus (A true charge card requiring full payment each month)

• Best For: Simple, unlimited cash back for businesses
• Earning Rates:
  • 2% unlimited cash back on all purchases
• Key Benefits:
  • No preset spending limit
  • No foreign transaction fees
  • Must pay in full each month
• Pro Tip Capital One Pairing: Combine it with a Capital One Venture X Business or a Capital One Spark Miles for Business. From there, points can be redeemed for travel at 1 cent each or transferred to airline and hotel loyalty partners for even greater value.

9. Capital One Venture X Business (Premium business travel card with charge-like flexibility)

• Best For: Business travelers who want luxury perks
• Earning Rates:
  • 2X miles on all purchases
  • 5X miles on flights booked through Capital One Travel
  • 10X miles on hotels and rental cars booked through Capital One Travel
• Key Benefits:
  • $300 annual travel credit
  • 10,000 anniversary bonus miles
  • Global Entry/TSA PreCheck credit
  • Lounge access (Priority Pass + Capital One Lounges)

Conclusion

Charge cards like those from American Express offer premium benefits, but require full payment each month. Business owners and high spenders may also find charge-like credit cards such as the Chase Ink Business Premier or Capital One Spark Cash Plus useful for rewards and flexibility. Choosing the right card depends on spending habits, travel preferences, and business needs.

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