Question For Martin : Advice on this CC

idv

Hi

I have just recieved the following mail for Virgin Atlantic members offering 20k air miles if they open and spend on a American Express Gold Charge Card.

I just wanted to hear your thoughts on this credit card as this is a lot of miles credited to your flying club account ??

---

snip

---

In an exclusive offer for Flying Club members, you can apply for an American Express® Gold Charge Card and earn a whopping 20,000 bonus Flying Club miles when you’ve made your first purchase

---

snip

---

Clariman

I am not Martin, so I hope you don't mind me replying. The American Express Gold Charge Card is not a credit card - it is a charge card which is a different thing altogether. For a start, you have to pay off a charge card in full every month so there is no rolling credit from month to month. Secondly there is usually an annual membership fee for a charge card, whereas a credit card would be free. If you take a look at the AMEX website you can see that the Gold charge card normally has an annual fee of £95.

http://www.americanexpress.com/pes/uk/benefits/compare_charge.shtml

Now it could be that you have a special offer where the annual fee is waived for the first year, but it would likely kick in the following year. As with any offer, read the Ts & Cs in great detail. That is the best way of finding out what the benefits and catches are. Remember, there isn't usually such a thing as a free lunch.

Clariman

idv

So what exactly are the differences between a charge card and a credit card ?

Is it you have to pay the balance off every month ?? and there is usually a fee with a charge card?

So there must be some benefits of using a charge card for your annual fee ? i.e. free travel insurance etc ? or nobody would use them ??

Has anybody on the message board got a charge card and what are the opinions on them ?

mrcow

Have a look here:

What's the point of charge cards?