Charity Credit Cards

How to choose a charity credit card...

Credit card companies continue to devise ways to ensnare customers, charity credit cards being one of the latest, designed to appeal to our altruistic nature.

If you are a regular spender and a conscientious balance payer, then a charity credit card could clock up a few extra pounds for a charity of your choice.

These cards are good for:

1. Get a card from a charity you support.
   If you hate animals then its probably not going to be a wise choice to sign up to an RSPCA card, as you wont really feel as satisfied with the money you are giving.



2. Spend spend spend.
   The more you spend on your charity credit card the bigger donations you will make. Just make sure you can pay the bills when the shopping sprees are over, or the money you are charged in interest will massively outweigh any donations you’ve earned.
   
   The key to success is to change your spending habits, not what you spend on! Put typical everyday purchases that you currently pay for with cash or a debit card on to your charity credit card.

These cards are unsuitable for:

- Regularly carrying a balance
If you rarely manage to pay off your credit card in full at the end of the month, then a charity credit card is probably not worth looking into.

You must pay off the full balance every month or the interest you are charged will eliminate any donations you earn.

The unfortunate reality is that credit card companies wouldn't offer these credit cards if there was no financial gain for them. If you miss just one payment your donations will be outweighed by interest charges.

If you feel you fit the mould for a regular balance carrier, but still want to help out, you'd be better off looking at low interest rate credit cards; they can help keep your interest low, so you can donate the money you save.

- A poor credit history
As many of the charity credit cards offered are platinum cards, you will need to have a good credit score and good annual income to be accepted for one.

Look for:

- The best deal for you
Charity credit cards often offer other incentives to lure you in, which you can use to your advantage if you plan on using the charity credit card for more than just spending.

Some of the features that are currently available when you sign up to a charity credit card include:

• Bonus initial donation when you open the account
• Annual bonus donation for every year the account is held
• 0% introductory deals
• Purchase and fraud securities

Watch out for:

- Balance transfer offers
Some charity credit cards may offer 0% balance transfers.

Be careful! Credit card companies have an 'allocation of payments' rule stating that you have to pay off an account balance according to its interest rate, starting with the lowest interest. . .

. . . i.e. If you transfer over a large balance, hoping to pay it off over the next 6 months, then you spend £20 at the pub, you will have to pay off the entire balance you have transferred before the high interest spending debt.

Either quit spending while you pay off the balance transfer or take out a 0% balance transfer credit card to do the job.

Don't forget:

- Which transactions make donations?
The card issuer makes a % donation for any purchases made with the charity credit card, however donations aren't made for:

• Balance transfers
• Cash withdrawals
• Cash back (e.g. from the supermarket)
• Foreign currency or traveller's cheque purchases
• Gambling transactions

Compare charity credit cards