What Are Charity Credit Cards?

As part of the explosion in credit card marketing strategies, credit card companies now offer what are known as charity credit cards. Charity credit cards are linked to a charity that is offered by the credit card issuer. If you want to give to charity, getting such charity credit card is a great way to donate money.

How Charity Credit Cards Work

Let’s say you’re looking for a new credit card. You happen to come across one that is linked to a major environmental protection group that you are very fond of. If you decide to get this charity credit card, in almost all cases it will mean that a portion of your purchases made on the credit card will be donated by the credit card company to the charity. So, for people who want to donate to their favorite charity but forget to do so, or feel like they never have enough money to send them a check, the charity credit card eliminates that obstacle by donating to the charity for you. The more you spend on yourself, the more you donate to your favorite cause through your charity credit card.

Pros and Cons of a Charity Credit Card

The downside to charity credit cards is that the amount of money the credit card companies actually give to your charity can be pretty low – as in 0.25-0.65%. That amounts to just 25-65 cents to charity for every 100 dollars that you spend. At the end of the year, your contributions to your favorite charity can total just 50-100 bucks or so. Given how much credit cards charge in fees and interest, you might be better off getting out your checkbook and just writing your charity a check for $50 or $100 and bypass the credit card altogether.

To learn more about charity credit cards and credit cards in general, be sure to speak with a representative of the charity credit card, or your own financial advisor.