Charity Credit Cards – Not Always The Best Deal

If you want to take out a charity credit card or you all ready own one, you might be under the illusion that you are helping the charity that is affiliated with the card, well you are to an extent, though there is better ways to donate to any given charity.

Let me explain, when to first apply for a charity credit card and you are excepted, a donation of between £2.50 and £18, will be made straight to the charity that is on the card. Then when you make purchases, a further 0.25% of every pound spent will be given to your named charity, this works out at 25p per £100, though some credit cards will make double of the donation, giving 0.5% per £100 spent.

A few down sides to the charity credit cards to tell you about before I go on to tell you, a better way to earn cash for charity. Though you might think what you are doing is worthwhile, it is to an extent, but it can harm your credit rating and also the charity will not be able to apply for the tax breaks that it would do if it were given the cash straight out of your pocket. This is due to your donation being classed as a royalty and therefore is a gift. If you also are a borrower and don’t pay your credit card off in full each month, then avoid these cards as the usually come with a higher APR, meaning they are costing you more than what the charity gets, if you think about it you would be better off just paying a lump sum to the charity at the end of the year, meaning the charity receives more money and you save cash.

So if you are looking to do your bit and donate to charity, then by taking out a cashback credit card you will make up to four times as much as with the charity cards. This is due to the fact that a cash back credit card will give you 2% back on any purchases made; this is usually paid in a lump sum once a year. So when you receive the cash that you have saved, withdraw it from your account and make it payable to the charity of your choice, they will then be able to get the tax back as this is a donation, leaving the charities quid’s in and you feeling better for making more money for a worthwhile cause. Though again only take one of these cashback credit cards if you pay off your bill in full each month.

Some of the better deals on the market right now are the Amex Platinum card and the Blue American Express credit card. If you spend in the region of £9000 or more then the first card mentioned is the card to take, if you are less of a big spender then you cant go far wrong with the second of the above cashback cards. So happy fund raising and be careful that it suits both parties.