Charge Cards

Financial Chat
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Does the UK actually have any Charge Cards left?

Been wanting to get one but looks like only Coutts from what i can see.

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Yes, they do.

I have the following:

  • Coutts Silk Charge Card

  • Amex Platinum Charge (I think this is now a credit product if you apply for the card, I was able to keep the legacy card.)

  • Amex Centurion

  • Arbuthnot Latham Charge Card

I believe Handelsbanken still do a charge card, although I closed my account a few years ago.

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image

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Is that directed at me?

Not quite sure of the relevance here?

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It will be to the OP another topic ahah

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@mastercardnevervisa recently won a community award for most new threads created.

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What is the point/benefit of a charge card? What does it do that a normal credit card canā€™t?

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Nothing, itā€™s worse in every aspect. If you canā€™t clear your balance in full itā€™s an immediate default, and you donā€™t get S75 protection.

The myth is ā€œno pre-set spending limitā€ but Amex very much sets your spending power, youā€™re just not aware until a transaction declines unexpectedly.

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9

I think theyā€™re only worse because of our S75 protections and the fact they donā€™t apply to charge cards (although Amex used to apply those protections anyway).

That aside, I prefer them to a credit card. Itā€™s a shame theyā€™ve been disappearing from the uk market, but weā€™re not the best market for them. Weā€™re a pretty credit averse country, and itā€™s kind of hard to compete with the regulatory superiority that comes with a credit card, or the predatory appeal of BNPL. So the market for them outside the niche who are still serviced is probably teeny.

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10

I still have my Amex gold charge card too (which again, was phased out for new applications a few years ago I believe).

I donā€™t make use of it often but my credit limit genuinely is, for all practical purposes, non-existent. I have previously put thousands and thousands on there when booking accom and travel for a couple of massive group holidays. I think the pre-purchase indicator thing said I would be able to make purchases of at least Ā£20,000 at one point which is just :exploding_head:

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But I guess the thing is Amex do give people really high limits on their credit cards. Iā€™d be able to put 20k on mine if I wanted to.

I can see a slim use-case for charge cards, but until Iā€™m planning to buy a new car or boat or something and pay it off in full the same billing period, I think Iā€™ll be fine with my normal credit card :sweat_smile:

I just thought it was really interesting because the few folks who do have them seem to talk of them highly and appreciate the fact that theyā€™re still able to hold them despite them generally not being offered anymore.

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12

In my opinion, I wouldnā€™t necessarily call BNPL ā€œpredatoryā€. Some companies do it rather well (Monzo, Revolut).

The ones I have an issue with is like Klarna where itā€™s a credit check every time I believe? That must destroy your credit file.

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I used Klarna for a while and didnā€™t get hard-checked once.

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14

Oh. How do they check your credit-worthiness then?

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I treat my credit cards as charge cards and have the balance cleared in full by direct debit. Iā€™ve met missed any borrowing repayments since I obtained my first credit product which was an Amex Green Charge Card, which is no longer available unfortunately.

Amex is often my preferred choice but where this isnā€™t taken Iā€™ll use the Coutts Charge or an alternative.

I just prefer the flexibility of charge cards, I have over the years but through high value spend. I am yet to have a transaction declined or even the spending power low enough to not meet my needs.

I did however to secure an appropriate line of credit for my needs previously provide a list of assets and liabilities to my lenders to prove I can afford the credit limits I require.

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They donā€™t.

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Yeah Mikez said that. This shocks me. I thought a credit product would have a credit check alongisde it. I guess not :man_shrugging:

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I still have an Amex Green charge card which most of my monthly non-direct debit bills go through.

I use it as it ensures I pay it off and I slowly get points. Have not tested its unlimited limit. It also had some insurances on purchases etc but I think a lot of those have been phased out now.

I believe this is still a charge card: The Basic Card | American Express UK

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19

I remember when NatWest used to offer charge cards.

I also remember when Amex offered the Amex Red.

The reason why a lot of them are no longer available is because theyā€™re not flexible.

Banks want people to use credit cards and spend beyond their means, with a charge card that is not possible.

Also customers want the flexibility to pay their credit cards as and when they see fit.

If they have a large amount owing to their credit card provider, they can just make the minimum payment.

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Surely itā€™s far more possible with a charge card? You can spend more than you can afford to repay in full.

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