What is a characteristic of charged cards?

A characteristic of charged cards is that they must be paid in full upon receipt of the statement. Charged cards are designed to promote responsible spending and financial discipline by requiring users to settle their balance entirely each billing cycle. This means cardholders cannot roll over any unpaid balances, as they might with traditional credit cards.

This structure encourages users to only spend what they can afford to pay back at the end of the month, which can help avoid debt accumulation. The requirement for full payment provides a unique approach to personal financing, steering users away from the pitfalls of interest and ongoing debt.

In contrast, other options describe features typically associated with other types of cards, such as credit cards, which allow carrying a balance and incurring interest charges. Moreover, the restriction of being limited to one store relates more to store cards rather than general charged cards, which are generally more flexible in terms of where they can be used.