I think if you can afford the charge card bank accounts short term credit likely isn’t your issue.
Not to say that the wealthy don’t accrue debt but it’s more likely to be a conversation with your ‘personal wealth manager’ or whatever than just racking up an inadvertent short term credit balance
Yes, it is - as far as I’m aware the Amex Basic is the only remaining personal charge card that is available to the general public. There are a handful of ones offered by private banks, as mentioned above, and there are some business ones still available.
I’m aware it’s not likely but it’s still possible. If you lose your job you’re more likely to be able to afford your minimum payment over your full charge card amount.
I do see your point.
It’s a tough one and I don’t think there is a right or wrong answer.
However, I believe most charge cards are aimed at high earners, high spenders so on a balance of probabilities I’m not too sure.
I know Amex for example will block a certain transaction if it doesn’t meet their clients usual spending pattern and they will ask for proof that you have the funds or proof that the funds will be accessible to you before granting the purchase.
I recently supplied them a few months back actually with bank statements and an investment portfolio overview to show that what I require from a lending point of view is below what I have in cash liquid assets.
They were satisfied and I have never in my whole membership term with Amex had a transaction declined.
Everyone’s situation is different so what is a good product for some, may not be for others.
For people who require certainty a credit card may be the better option.
The point is if you are rich you can easily afford either. If you are out of cash you can always get a loan on some of your assets but you aren’t going to start paying credit card level interest when you have assets worth multiple times any debt you might accrue in a month.
Sure but charge cards aren’t (or weren’t) for the rich. There are numerous “regular” folk here who still have one.
The issues I have put up above are almost certainly the reason they are declining; it’s too risky for most companies and most clients (the very wealthy aside).
So in a way I’m both right and wrong. Charge cards open to all as a concept are riskier; charge cards in their current format are less so (but as a concept still retain the risk).