Charity Credit Cards: a new card that needn't cost the Earth
Steve Sheldon
As well as balance transfer cards, reward cards, cash-back cards and the whole host of other cards that are available there is good news for those consumers that want to 'give a little back': plastic now has a conscience in the form of charity or 'affinity' credit cards. The charity card concept was started nearly 20 years ago and is available from many different organisations. They aim to have the same benefits and facilities of a more traditional credit card, but at the same time, are designed to make a small donation to your chosen charity each time the credit card is used. The donation made is a percentage of each purchase and the credit card issuer makes the donation on your behalf. But do these credit cards really offer the stability of more traditional credit cards and how do you find the one that suits you best? Is it a case of choose the charity or choose the card?
When choosing charity credit cards, it is important that the card is practical as well as a tool with which to help worthy causes; there is no point in signing up to a credit card with interest rates that you cannot possibly afford. This would both jeopardise your credit future and also potentially lose the charity worthwhile donations. Instead you should shop around and focus immediately on the APR and interest rates of charity credit cards. If you find that the charity you wish to donate to has rates that are beyond your means, remember that there are thousands of them out there and you are sure to find something that suits you both morally and financially. A full list of charity credit cards can be found at charitycards.co.uk.
The WWF credit card currently donates a small amount whenever someone signs up and then goes on to make a donation to the charity every time the card is used. The WWF have also made sure that their credit card is ethically sound, by making it PVC-free and helping to reduce the levels of toxins absorbed by the environment that are by-products in the production of plastic.
Another example is the National Trust who receive contributions to the Trust every time their affinity credit card is used. And when the introductory period is over, the standard APR is comparable to the interest rates of most conventional credit cards. The Breathe Credit Card donates some of its net profits to projects that tackle climate change and offers a low purchase rate on public transport to help reduce carbon emissions. It also has offers and discounts on selected 'greener goods'. Both of these charity credit cards are good examples of how the perks and reward schemes can benefit the consumer as well as the chosen charity.
Every time you use your chosen charity credit card, a small percentage of your purchase is donated to your chosen charity - without costing you a penny. The Breakthrough Breast Cancer credit card is currently used by over 50,000 consumers and has generated over 1,000,000 worth of donations for the breast cancer charity, so you can see the truth in the saying 'every little helps'. In the case of charity credit cards, what may be perceived as a small donation can add up quickly when combined with the donations of thousands of other consumers.
And, as with regular credit cards, the competition between charity credit cards has become fiercer and fiercer, with each company offering different incentives and perks to attract discerning custom. This apportions benefits to both the consumer and the charities as more people decide to use these types of card. Recent years has seen a renaissance amongst the various types of credit card; once they were seen as a woolly-thinking waste of time and now they have become one of the most popular forms of credit card available.
Steve Sheldon has examined the benefits and facilities of
http://www.mbna.co.uk/creditcards/othercards.html charity credit cards and suggests that before you select your next credit card you consider the 900+ charity cards available and help the organisation of your choice.
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