Page Contents<\/p>
- Charge Card vs. Credit Card: Key Differences<\/a>
- Credit limits<\/a><\/li>
- Interest rates<\/a><\/li>
- Impact on your credit score<\/a><\/li>
- Late fees<\/a><\/li>
- Annual fees<\/a><\/li>
- Card approval chances<\/a><\/li><\/ul><\/li>
- Common Examples of Cards With No Preset Spending Limit<\/a><\/li>
- Bottom Line<\/a><\/li><\/ul><\/div>\n\n
Charge Card vs. Credit Card: Key Differences<\/span><\/h2>\n
Credit limits<\/span><\/h3>\n
While credit cards have a set credit limit for how much you can spend on the card at one time, an advantage of charge cards is they usually do not have preset spending limits. <\/p>\n
No Preset Spending Limit means the amount you can spend adapts based on factors such as your purchase, payment, and credit history.<\/em><\/p>\n
Charge cards are a great tool should the need to make a large purchase arise. They provide greater flexibility than a credit card with a designated credit limit. Charge cards also help you avoid reaching a credit card\u2019s limit. With a traditional credit ard, approaching a credit card's limit will increase your “credit utilization” and negatively impact your overall credit score<\/a>.<\/p>\n
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Credit: Karolina Grabowska\/Pexels<\/em><\/enter><\/figure>\n However, a lack of preset spending limits on charge cards does not equate to unlimited spending ability. The card issuer still sets limitations on your account based on variables like payment history, financial resources, and credit score.<\/p>\n
Before attempting a large purchase, check online or call your charge card provider to confirm your current purchasing power. Additionally, remember that you must still pay the full balance according to the due dates set by the card issuer.<\/p>\n
We always recommend paying balances in full each month, no matter which type of card you use. If you follow that guidance, there is not much difference in how you use a charge card versus a credit card.<\/p>\n
Related: A Beginner's Guide to Building Healthy Credit<\/a><\/strong><\/p>\n
Interest rates<\/span><\/h3>\n
You can carry a balance on a credit card. However, you'll pay interest if you make only the minimum payment or pay less than the full balance that month. Even worse, credit card holders are charged both interest and late fees if the minimum payment is not met.<\/p>\n
Interest rates are not an option on most charge cards, as you typically need to pay off the full balance each month. However, American Express offers the ability to “Pay Over Time”<\/a> on cards like the American Express Platinum Card\u00ae<\/sup><\/a> and American Express\u00ae<\/sup> Gold Card<\/a>. This enables cardmembers to pay for charges on these cards with interest over time or choose to pay their monthly balance in full.<\/p>\n
\n\n\nAmerican Express Platinum Card\u00ae<\/sup><\/div>\n<\/div>\n How to Apply<\/a><\/div>\nRates & Fees<\/a>
(Terms apply)<\/span><\/div>\nWelcome Offer<\/strong>\r\nAs High As 175,000 points. Find Out Your Offer. You may be eligible for as high as 175,000 Membership Rewards\u00ae<\/sup> Points after spending $12,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.<\/div>\n <\/div>\n\n American Express Platinum Card\u00ae<\/sup><\/strong>\nWelcome Offer<\/strong>\r\nAs High As 175,000 points. Find Out Your Offer. You may be eligible for as high as 175,000 Membership Rewards\u00ae<\/sup> Points after spending $12,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.<\/div>\nAnnual Fee:<\/strong>$895<\/b><\/div>\nShow more<\/a>Why We Like It<\/a>Highlights<\/a>Earning Rates<\/a>Cardholders can access more than 1,550 airport lounges worldwide, take advantage of up to $200 in annual airline fee credits, up to $209 in CLEAR+ credits, and TSA PreCheck\u00ae<\/sup> or Global Entry fee credits. The card also includes an annual hotel credit worth up to $600 on prepaid Fine Hotels + Resorts\u00ae<\/sup> or The Hotel Collection bookings (The Hotel Collection requires a minimum two-night stay), Hilton Honors\u2122 and Marriott Bonvoy\u00ae<\/sup> Gold Elite status, and a suite of benefits with Fine Hotels + Resorts\u00ae<\/sup>. Additional perks include $12.95 monthly Walmart+ membership credit (with applicable sales taxes and Plus Ups not include), up to $300 in annual digital entertainment credits, up to $300 Equinox credits, and up to $200 annual Uber Cash and $120 Uber One Credit. Enrollment required for select American Express benefits.<\/div>\n\n\n- You may be eligible for as high as 175,000 Membership Rewards® points after you spend $12,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you're approved and find out your exact welcome offer amount - all with no credit score impact. If you're approved and choose to accept the Card, your score may be impacted.<\/li>
- Get more for your travels with 5X Membership Rewards® points on all flights and prepaid hotel bookings through American Express Travel®, including Fine Hotels + Resorts® and The Hotel Collection bookings. You earn 5X points on flights purchased directly from airlines or through American Express Travel® on up to $500,000 on these purchases per calendar year.<\/li>
- With over 1,550 airport lounges - more than any other credit card company on the market* - enjoy the benefits of the Global Lounge Collection®, over $850 of annual value, with access to Centurion Lounges, 10 complimentary Delta Sky Club® visits when flying on an eligible Delta flight (subject to visit limitations), Priority Pass Select membership (enrollment required), and other select partner lounges.* As of 07\/2025.<\/li>
- $200 Uber Cash + $120 Uber One Credit: With the Platinum Card® you can receive $15 in Uber Cash each month plus a bonus $20 in December when you add your Platinum Card® to your Uber account to use on rides and orders in the U.S when you select an Amex Card for your transaction. Plus, when you use the Platinum Card® to pay for an auto-renewing Uber One membership, you can get up to $120 in statement credits each calendar year. Terms apply.<\/li>
- $300 Digital Entertainment Credit: Experience the latest shows, news and recipes. Get up to $25 in statement credits each month when you use your Platinum Card® for eligible purchases on Disney+, a Disney+ bundle, ESPN streaming services, Hulu, The New York Times, Paramount+, Peacock, The Wall Street Journal, YouTube Premium, and YouTube TV when you purchase directly from one or more of the providers. Enrollment required.<\/li>
- $600 Hotel Credit: Get up to $300 in statement credits semi-annually on prepaid Fine Hotels + Resorts® or The Hotel Collection* bookings through American Express Travel® using the Platinum Card®. *The Hotel Collection requires a minimum two-night stay.<\/li>
- $400 Resy Credit + Platinum Nights by Resy: Get up to $100 in statement credits each quarter when you use the Platinum Card® to make eligible purchases with Resy, including dining purchases at U.S. Resy restaurants. Enrollment required. Plus, with Platinum Nights by Resy, you can get special access to reservations on select nights at participating in demand Resy restaurants with the Platinum Card®. Simply add your eligible Card to your Resy profile to book and discover Platinum Nights reservations near you.<\/li>
- $209 CLEAR+ Credit: CLEAR+ helps get you to your gate faster by using your face to verify you are you at 55+ airports nationwide. You can cover the cost of a CLEAR+ Membership* with up to $209 in statement credits per calendar year after you pay for CLEAR+ with your Platinum Card®. *Excluding any applicable taxes and fees. Subject to auto-renewal.<\/li>
- $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees, such as checked bags and in-flight refreshments, are charged by the airline to the Platinum Card® Account. American Express relies on airlines to submit the correct information on airline transactions to identify incidental fee purchases. If you do not see a credit for a qualifying incidental purchase on your eligible Card after 8 weeks, simply call the number on the back of your Card. Qualifying airlines are subject to change. See terms & conditions for more details.<\/li>
- Start your vacation sooner, and keep it going longer. When you book Fine Hotels + Resorts® through American Express Travel®, enjoy noon check-in, when available, and guaranteed 4PM check-out.<\/li>
- $300 lululemon Credit: Enjoy up to $75 in statement credits each quarter when you use the Platinum Card® for eligible purchases at U.S. lululemon retail stores (excluding outlets) and lululemon.com. That's up to $300 in statement credits each calendar year. Enrollment required.<\/li>
- $155 Walmart+ Credit: Receive a statement credit* for one monthly Walmart+ membership (subject to auto-renewal) after you pay for Walmart+ each month with the Platinum Card®. *Up to $12.95 plus applicable local sales tax. Plus Ups not eligible.<\/li>
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24\/7.<\/li>
- $895 annual fee.<\/li>
- Terms Apply.<\/li><\/ul><\/body><\/html>\n<\/div>
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- Earn 5X points for flights booked directly with airlines or with American Express Travel\u00ae<\/sup> (up to $500,000 in purchases per calendar year).<\/li>\r\n
- Earn 5X points on prepaid hotels booked with American Express Travel\u00ae<\/sup>.<\/li>\r\n
- Earn 5X points on Fine Hotels + Resorts\u00ae<\/sup> and The Hotel Collection bookings.<\/li>\r\n<\/ul><\/div><\/div>\n <\/div>\n <\/div>\n
- Earn 5X points on prepaid hotels booked with American Express Travel\u00ae<\/sup>.<\/li>\r\n
- Earn 5X points for flights booked directly with airlines or with American Express Travel\u00ae<\/sup> (up to $500,000 in purchases per calendar year).<\/li>\r\n
- Interest rates<\/a><\/li>
- Credit limits<\/a><\/li>
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