Charity Credit Cards
If you are looking for a credit card that gives back to your favourite charity or worthy clause then we can help. We have compared and displayed a wide range of charity cards on the market. Simply choose and click through to apply direct.
Charity credit cards: are they really worth it?
If you want to give more to charity, but don't know how to do so, then you might want to consider taking out a charity credit card. These cards allow users to spend money as usual, in any way that they want, and then the card company donates a small amount of that money to the chosen charity. There are several ways in which you can give money to the charity, and there are plenty of charities in the UK that allow you to use their name on your card. However, despite the advantages of being able to donate whenever you choose, there are also some fairly large downsides which mean that you could regret getting the card once you have it in your hands and have been using it for a while. Finding out how these cards work, what the disadvantages are and how you can avoid them can help you to decide whether you want to take the risk of using a charity credit card.
How does a charity card work?
If you decide to order a charity credit card, then there are several ways in which money will be donated to the charity. These might vary between credit card companies, both in the range of methods they offer, and in the percentages they use to work out how much they should give to the charity. The first way that you give to charity using the credit cards is in applying for the card in the first place. Most companies linked with a charity will donate an amount when your application is granted. The amount is not often huge: about £15 is the standard.
The second way to donate through your credit card is with regular small amounts which are taken from the amount that you spend using the card. This is the way that most credit card companies handle your donations, but the amount provided to the charity is often a small percentage, maybe 5% of all you spend. Some companies choose to donate in a completely different way, by sending a lump sum at the end of the year. So each year that you use the credit card, the company will donate a small amount. Again, this is not huge, and may be as little as £2 a year. This is the only donation that the charity will receive from your credit card.
What are the best charity credit cards?
If you still want to give the charity credit card a try, then there are a few companies offering relatively low rates of interest. Co-op Shelter cards provide £20 when the card is used for the first time, and then 0.25% goes to Shelter. APR is 12.9%, and the card is interest-free for the first two months.
The MBNA Breast Cancer card donates £40 if you use your card less than 90s days after the account is opened, as long as you apply online. They then offer 0.25% on purchases, and £2 per annum for each year that the card is used. APR with this card is typically 18.9%.
What are the disadvantages of using the charity credit card?
Although you might think that donating to charity in any form is a positive thing, when it comes to credit cards you may experience some serious disadvantages. Most seriously, the credit card that comes with the donations is often one of the weaker products on the market. There is a reason that no charity credit cards are ever on any financial websites' Must Have list. They are extremely costly, with most companies charging over the odds in terms of interest rates.
Those cards with the lowest interest rates tend to donate the least to the charity, unsurprisingly. In addition to being weak and over-priced, these cards are also likely to do some damage to your credit score. This is because people are tempted to purchase more items in order to provide more money to the charity. In addition, if you apply for more than one charity credit card and are declined, your credit score may be effected and possibly decrease, as multiple failed applications are a black mark against your credit reliability. So when you take out a charity credit card, you might be doing some damage. If this was not enough, the donations from some cards are really not worth it. Charities may receive as little as 0.25% per annum, that's about 25p for every £100 you spend. This means that you would have to spend a great deal in order to donate a worthwhile amount to the charity, while you'd end up stuck with a bill for all of these purchases, plus interest.