Do good things with charity credit cards

Feb 23 2010 By Mary Barabe

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Not many people know about charity credit cards or how they actually work, but they are becoming increasingly popular as the century wears on. Charity credit cards offer similar features to traditional credit cards, but with the added benefit of donating to charity.

While these cards do not necessarily offer you the same benefits as a standard credit card, they can help save the world without affecting your bottom line. You still get the security, the features and the flexibility of a normal card, and the disadvantaged get some help.

Charity credit cards really are a fantastic way of supporting a favoured charity or cause without changing your expenditure or the way you live. Applying for, and using, a charity credit card is no different from a normal one and there are some lovely competitive deals.

Just a simple online search will throw up plenty of choice. If you fancy saving the planet then there are cards for you. If you prefer to save children then there are cards for you. You don’t pay more, but you give more and that can only be a good thing.

The different charity cards are structured in various ways. Some will make a large donation when you activate your card, with an overall percentage going to the charity each year. Others will make a specific donation per a certain amount of spend.

Charity credit cards use a reward or loyalty strategy similar to what you would find on a cashback credit card. However, instead of the money going to you, it will go to a charity.

Every time you swipe your card, a percentage of the payment is donated. How large this percentage is will depend on the company and the deal you chose. While some of these percentages may seem small on first glance they truly do add up.

According to some statistics there are over 15,000 credit card transactions every second in the UK - during business hours of course. That small percentage suddenly stacks up impressively, especially if everyone owned a charity credit card.

Many of the biggest banks have charity credit cards so you won’t necessarily have to change institution to get one of these. They have really made an effort to make getting one painless.

However, as you gaily go about saving the planet with each purchase you make, remember that these are still credit cards. You will still have to make your monthly payments and they can get you into debt. Be as careful and wise using these cards as you would any other.

If you manage yours responsibly and take the same care over its security, then your charity credit card will do great good. You will also have the usual benefits of building a credit record and having easily accessed emergency cash.

Charity credit cards are well worth having, even if you don’t use them very often. The old adage “every little helps” has never been truer.