Charity Credit Cards Good or Bad?
Credit Card Companies have been offering charity credit cards for a number of different areas. There are also cards like the green cards to help the environment. In a recent study done by officials the cards have been seen as not so good. Charity cards tend to donate a specific amount of money to the specified charity based on the amount that the consumer spends. However, the charity donation is extremely low. For example many of the cards on the market will pay 25 pence per 100 pounds spent. That is a very cheap donation.
Officials have looked at ways to increase the amount that is donated to charity. There are a lot of zero percent purchase and rewards cards on the market. It has been suggested that these cards should be used to donate to charity. In other words the money that would have been made from the consumer on the purchase interest rate or the rewards that are offered should be given to charity.
In one example a credit card that you spend 500 pounds on in one month will only donate 36 pounds. For a contrast if you have a card with zero percent interest for 12 months on purchases you would actually be saving 500 pounds in interest. The officials have shown that if the credit card companies donate what they would have been making in interest the charities would benefit more than they do from the small percentage off of actual spending by consumers. The other thing with these credit cards is that the consumer trying to help out their charity can actually go into debt rather quickly to make the donation worth it. Overall if the person didn’t have the credit card and they donate to their favourite charity the charity would be benefiting more.