What is the main characteristic of a charge card?

The main characteristic of a charge card is that it requires balances to be paid in full monthly. This means that when you make purchases using a charge card, you need to pay off the total amount by the due date without the option to carry a balance into the next month. This differs from traditional credit cards, where you can carry a balance and incur interest charges if the full payment is not made.

By requiring full payment each month, charge cards typically encourage responsible spending and financial management, as cardholders need to ensure they have enough funds available each month to cover their purchases. This structure can help individuals avoid accumulating debt, making charge cards a useful financial tool for those who are disciplined in their spending habits.