Charity credit cards 'could be more charitable'

Tuesday, 04 March 2008 12:00

Charity credit cards are donating so little cash it is more worthwhile finding a 0% deal and donating any cash saved.

Most cards now only donate around 25p for every £100 spent - or 0.25 per cent of all spending.

Steve Willey, head of credit cards at moneysupermarket.com, said: "Make sure by acting charitably, your finances don't become a charity case.

"Charitable cards, while commendable in theory, are let down by the small percentage of profits that actually end up in the pockets of the charities."

He added: "If the majority of activity on your credit card is through purchases, then your most charitable option is to get a card with the longest zero per cent offer on purchases and give some of your savings to the charity of your choice."

If £500 a month is spent on the Nationwide Comic Relief card - a more generous charity credit card - a total of £36 is donated a year.

However, the Halifax One Online Special card - offering zero per cent on purchases for 12 months - would save you over £500 in interest.

"Donating some of the money you saved with Halifax One would enable you to make a whopping charity donation," Mr Willey said.

"The same holds true if you have debts, but would still like to donate. Virgin has a 15-month zero per cent balance transfer offer that would save you over £300 on a £2,000 transfer, compared to simply making the minimum monthly repayment on your Comic Relief card."

The leading charity credit cards (Source: Moneysupermarket.com):

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