What is a Charge Card?
Abid Salahi
•7 min read
So, What is a Charge Card?
1. Full Payments Required
2. No Credit Limit
3. High Credit Score Requirement
4. Annual Fees
American Express® Aeroplan® Card
American Express® Aeroplan®* Card
3.3
Finly Rating
Welcome Bonus*
50,000 Points (30,000 in 1st year)
Annual Fee*
$120
Interest Rates*
30% Annual / 30% Annual
RECOMMENDED CREDIT SCORE*
Why we like it
Why we like it
This card comes with the free checked bag benefit, which can save hundreds on a single trip for you and your family, more than making up for the annual fee of the card. In addition, the card helps you reach the next Aeroplan Status faster with spending on the card. However, if you don't have a specific use for these two benefits, there are many better cards in terms of benefits and rewards.
Pros & Cons
Pros & Cons
Pros
- Free checked bag benefit: Every checked bag might cost you $60 - $100 per person on a round trip. The amount you can save in a year if you travel a few times or travel with a few companions can easily be much higher than the annual fee of the card.If you are interested in a higher Aeroplan Status, the card helps you get there faster.
Cons
- The main reward category is only for Air Canada purchases. Unless you are a frequent Air Canada traveler, this reward category is not useful to most people.
- The only other rewards category offered is for food, and it doesn't offer that high of a reward rate either.
- In terms of insurance benefits, the types and coverage amounts provided are lower compared to other cards with a similar annual fee.
Product Details
Product Details
Rewards*
- 2 points on Aircanada and AirCanada Vacations
- 1.5 points on Dining
- 1 Point on everything else
Insurance*
Coverage*
Flight Delay
$500 (Aggregated with Baggage Delay)Baggage Delay
$500 (Aggregated with Flight Delay)Hotel Burglary Insurance
$500Travel Accident
$500KCar Rental Damage & Theft
$85K, up to 48 daysPurchase Protection
90 days, $1000 per occurrenceExtended Warranty
1 year
Benefits*
Details*
Free first checked bag
You and up to 8 companions every time you fly with Air CanadaStatus lift
Reach Aeroplan Elite™ Status sooner by earning Status Qualifying Miles and Status Qualifying Segments with purchases made on your accountFree Extra Night at Hotels
Receive an extra night free for every 3 hotel nights redeemed with Aeroplan pointsAmerican Express Experiences
Extra points
Earn points twice at over 150 Aeroplan partner brands
Eligibility*
Credit Score
GoodAnnual Income
N/A
American Express Platinum® Card
American Express Platinum Card®
4
Finly Rating
Welcome Bonus*
Up to 100,000 points (70,000 in 1st year)
Rewards Rate*
1x - 2x Points
Annual Fee*
$799
Interest Rates*
21.99% - 30% / 21.99% - 30%
RECOMMENDED CREDIT SCORE*
Why we like it
Why we like it
If you're a frequent traveler, the Platinum card is an excellent choice. It's highly recommended for its extensive travel benefits, including unlimited lounge access for you and a guest at the American Express Lounge collection, making it the best card for lounge access in Canada. The card also offers unique perks not commonly found with other Canadian cards, such as status upgrades at Marriott Bonvoy and Hilton, dining and travel credits, concierge service, airport benefits, Nexus application reimbursement, and more. These benefits can more than offset the annual fee. However, if you don't travel often or are mainly looking for a card that maximizes rewards, this card may not be the best option for you.
Pros & Cons
Pros & Cons
Pros
- Offers more perks than any other credit card in Canada, catering to premium users who value extensive benefits.
- Enjoy $400 in annual travel and dining credits, which can offset some of the card's cost.
- Gain unlimited access to over 1,300 airport lounges worldwide, enhancing your travel experience.
- Multiple options for redeeming points for high value, giving you flexibility in how you use your rewards.
- Includes 11 types of insurance coverage, offering comprehensive protection for cardholders.
Cons
- As with other American Express cards, it may have lower acceptance in some locations compared to other networks.
- The high annual fee of $799 may be a barrier for some users, especially those who do not fully utilize the card's benefits.
- Some benefits are limited to specific airports and hotels.
Product Details
Product Details
Rewards*
- 2x points per $1 spent on eligible dining & food delivery purchases (restaurant, fast food, coffee shop, food delivery)
- 2x points per $1 spent on eligible travel purchases (flights, hotels, tours and more)
- 1x point per $1 spent for all other purchases
Insurance*
Coverage*
Emergency Out of province Medical
$5 Million per insured, 15 daysTrip Cancellation
$2500 per person, $5000 combinedTrip Interruption
$2500 per person, $6000 combinedFlight Delay
$1000 after 4 hour delayBaggage Delay
$1000 after 6 hour delayHotel Burglary Insurance
$1000Lost or Stolen Baggage
$1000Travel Accident
$500,000Car Rental Damage & Theft
$85K, up to 48 daysPurchase Protection
120 days, Up to $1KExtended Warranty
1 year
Benefits*
Details*
Travel Credit
$200Dining Credit
$200 at Select RestaurantsNexus Application
$100 statement credit every 4 yearsAirport Lounge - American Express Global Lounge
Unlimited Access for you and a Guest!Complimentary Hotel Benefits
Hotels booked American Express TravelStatus lift
Upgrade to Hilton Honors Gold StatusStatus lift
Upgrade to Marriott BonvoyTM Gold Elite statusAirport Benefits
At Toronto Pearson Airport get Priority Security lane, Complimentary valet and 15% discount at the Express Park and daily parkConcierge Services
Trip and legal Assistance
American Express Experiences
Extra points
Earn 2 points on Amex Travel Online purchases and extra points on American Express offers
Eligibility*
Credit Score
GoodAnnual Income
N/A
5. No Credit Utilization Impact
6. Good Rewards & Benefits
When to apply for a charge card?
- When you are a sensible user and do not tend to overspend. If you can manage your expenses as per your affordability then it is a great option to get a charge card. This way you can use the card as per your monthly spending limit and pay the balance in full at the end of the month while enjoying the associated benefits and rewards.
- If you crave for freedom to use the credit line without having to worry about the credit limit then it is better to get a charge card. This way you can use the card as per your financial needs. If your monthly expenses are not fixed and you need the liberty to use the credit line without any upper limit then the charge card is the perfect fit for you.
- Credit utilization can be tricky to keep track if you own many credit cards or lines of credit. If you are worried about keeping your utilization under 30% then it is better to apply for a charge card instead of a credit card. This way you can enjoy using credit without stressing over the utilization.
Pros and Cons of Charge Cards
Pros:
- No worry about credit limit or credit utilization
- Amazing rewards and perks that can offer you great ease
Cons:
- You need an exceptionally high credit score to get the charge card which limits your ability to get a charge card.
- Charge card comes with an annual fee that can be quite pricey in your pocket.
- Charge cards generally come with high-interest rates like 30%.
- If you are a careless spender then it is quite risky to get a charge card because you might end up in a lot of debt. Having no credit limit can be a big risk for some people.