All you need to know about charity credit cards

A lot of people are struggling financially at the moment and because of that one of the first expenditures to be cut is people\’s charity donations. Of course charities still need funding to continue to conduct research and help people and luckily they are still receiving this funding from another source. The charity credit card is a way for people to give money to charity but indirectly. The money doesn\’t come out of a person\’s own pocket but they are still able to donate with this method.

The idea behind charity credit cards is that people go about their daily lives paying for things using their credit card and every time they make a purchase using that card a small amount is given to charity. The cardholder doesn\’t have to spend more than they usually would or change their spending habits at all. More importantly for those who are struggling financially is that they don\’t have to give money directly to charity but they will still be contributing.

Customers can shop around to find the charity credit card offering the best deal but most range between 0.25% and 1% of each transaction. Despite this not seeming like much at all, it obviously adds up very quickly as people use their cards multiple times a week and often for very expensive purchases too.

Charity credit cards have seen millions of pounds donated to major UK charities since they were first introduced a few years back. The Co-operative Bank released their figures which showed more than 6million worth of donations over a four year period. This highlights the scale of the donations considering the Co-operative Bank actually has a relatively small customer base when compared to some larger high street banks which also offer charity credit cards.

Despite charity credit cards being a great idea, they aren\’t actually the best option. People can donate far more through the use of a cash back credit card. The money paid on cash back credit cards is almost double but using this method, it is up to the consumer to donate the cash back personally once they receive it.

Click here for more information on the credit card industry.

All you need to know about charity credit cards