Advantages

One advantage of using a charge card instead of a credit card is that it protects cardholders from accumulating credit card debt, since the balance has to be paid off in full each month.

For cardholders who find that they constantly spend more on their credit cards than they intended to, shifting to a charge card will provide all the conveniences of plastic, and none of the drawbacks.

Having to pay down the balance in full at the end of the billing cycle is usually a great deterrent against overspending. Of course, this only works as long as the balance is paid off in full each month; charge cardholders who spend more than they can afford will find themselves facing substantial penalty fees and high interest rates if they can’t pay the balance off at the end of the month.