Charity credit cards donate portions of money that you spend to a charity of your choice. For those folks who already give on a regular basis, or for those who are looking for a convenient way to give back, this type of reward credit card may be a good solution. Charity credit cards offer a small dose of being helpful to other people through spending money and paying on your credit card bill.
If you want to feel like you’re giving back when you spend money, a charity (or affinity) credit card might be good for you. Just like other reward cards, the donated amount is related to how much money you spend. You just have to keep paying your bill for it to work well. These cards offer a sense of contribution that you might not get with a normal credit card.
Charity Credit Cards Donation Amounts
Some of these card suppliers may not disclose how much they donate, and that may push you away from them. It is a good idea to try and find out what percentage they donate before applying to one of these credit cards. These cards cater to a multitude of causes, such as children in school, wildlife, environment, and domesticated animals. You can even set up a card to donate to your school or other local causes. If you want one of these cards, find a good cause that you’d love to support, that also is donated a sufficient amount by the card company.
How Charity Credit Cards Work
Although the percentage coming from your individual credit card may look small, when it’s combined with donations from other credit card users it can have a good impact on your selected charity. There are many different ways that these cards work. Some cards offer a point system that sends money to charities based on points earned, some offer a small amount per transaction, and others can even send you a check so you can get a tax deduction (rather than the credit card company getting it). You can even swap between two affinity cards, using one for small purchases and another for large purposes to make the most of your donations.
Charity Credit Card Interest Rates
Most charity credit cards carry a high APR and other fees that may steer you away from them. It’s a poor idea to get a charity credit card if you’re going to spend too much to maintain it and harm your own long-term credit score. It may seem selfish, but if you can’t pay your bill, the charity you would like to support won’t get any money either. Additionally, if you have problems paying off your credit card balance, you might want to look to other credit card opportunities. Just be wary of overspending, don’t be lulled into thinking you’re doing good when you could be harming yourself.
Benefits Of Charity Cards
When using a charity credit card, you typically get much fewer benefits than what you would with a normal credit card. The main benefit is knowing that you are contributing to a cause you believe in.
Many credit card companies offer frequent flier miles and other travel related things to promote use of their card. Many charity cards don’t offer that, however they may offer discounts at certain stores. For example, a credit card that supports children may offer discounts on certain products such as crayons. It is prudent to see what you can get for benefits when applying for a charity credit card. If you already shop at the selected locations, this is a no-brainer.
Even though you don’t get as many perks or benefits as with a typical credit card, you still get the sense of purpose that you will be helping out someone or something. That in itself is a good enough reason for many people to carry around these credit cards. It also offers a small bit of personalization and symbolism by showing what you believe in, and being a good cause worthy of donating to.
Banks hold charity cards in high regard because of the fact that people stay with their cause instead of swapping cards based on interest rates. People tend to be more mindful of their charges when they think about who their money could be helping as well, which is a major perk to possessing a charity card. It may remind you of your spending, and when it would be a good idea of when to stop. That in itself may be worth the high APR and other potential fees.
Compare Charity Credit Cards Right Now!
Charity cards offer many altruistic rewards rather than physical rewards like most cards. That is worth it to many people, and is most certainly worth it to the causes that are supported. Take the time to see if there are any charities or causes you may want to support by using the free credit card chaser above, and get on the track to finding the credit card that’s right for you. Start now, and you can be helping others as well as yourself!