Charity credit cards: Giving directly more generous
Charity credit cards 'could be more charitable'
Tuesday, 04 Mar 2008 13:42
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):
| Typical APR | 0% balance transfer offer | 0% purchase offer | Initial donation for singing up/first pruchase | Donation per £100 |
| American Express RED (Global Fund to fight AIDS in Africa) | 16.9% | n/a | n/a | n/a | £1 |
| Nationwide Comic Relief | 17.9% | n/a | n/a | £6 | 50p |
| British Heart Foundation | 15.9% | 12 months | 3 months | £50 | 35p |
| Barclaycard Charity (Marie Curie Cancer, Save the Children, Samaritans and Woodland Trust) | 14.9% | 6 months | 6 months | £5 | 30p |
| Cancer Research | 16.9% | 6 months | 6 months | £5 | 30p |
| NSPCC | 16.9% | 6 months | 6 months | £20 | 25p |
| UNICEF | 15.9% | 12 months | 3 months | £20 | 25p |
| Oxfam Advantage | 14.9% | 6 months | 6 months | £17.50 | 25p |
| Help the Aged | 18.9% | 6 months | 6 months | £17.50 | 25p |
| RSPCA | 16.9% | 9 months | n/a | £17.50 | 25p |