Charity credit cards - the facts

Using a charity credit card can mean you give to worthy causes without having to do anything more than spend money on your card as normal.

And as television campaigns such as Red Nose Day and Children in Need raise awareness of charity issues, a new study looks at the best options for those looking for a charity credit card.

Currently consumers can choose between more than 40 charity-related credit cards, comparison service Moneyfacts.co.uk reveals.

These donate a set amount of money to a specified charity or charities when you first use the card, and offer a percentage of all future spending to the same causes.

"Undoubtedly the donations provided to charity from these cards will be greatly welcomed, but make sure you are not giving up better deals in the process," said Michelle Slade of Moneyfacts.

"If you can save yourself a few pounds by finding the most competitive deal, then you may even have some spare to donate to any charity of your choice as and how you choose."

She points out people using charity credit cards who carry over balances from month to month could be paying above average interest rates, with charity credit cards charging from 12.9 per cent to 18.9 per cent interest.

Additionally, introductory 0% balance transfer deals on charity credit cards tend to be far shorter than market-leading deals - with the exception of certain MBNA cards that offer 12 months' interest-free balance transfers. Typically, charity credit cards do not offer more than six months interest-free.

"Make sure the card you choose best matches your financial circumstances, and don’t sacrifice a great deal just to commit to giving to your charity. Remember any money saved can be given to your chosen charity," Ms Slade said.

"If you pay your balance in full, then the interest rate does not matter – so why not give to charity as you spend?"