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Use your credit card and feel good for charity
Jeannie Messer reports on how you can feel good by using your credit card and donate to a good cause.
May 5, 2010
If you would like to donate more to charity without straining your budget any further, using a charity credit cardis a great option, letting you raise money for a good cause while you shop.
Charity credit cards offer the same features as traditional credit cards (such as a competitive interest rate and low transfer fees) while donating funds to a nominated charity or cause. In the United Kingdom, they have become a vital source of funds for many organisations, generating an estimated £16.7 million (AU$27.5 million) a year in donations, the UK's Guardian reported in March 2010.
It's a concept that's gaining in popularity here in Australia. The Bendigo Bank's RSPCA Rescue Visa card is a charity-based rewards program donating a percentage of your credit card payments to the RSPCA's Adopt-A-Pet Program.
The Community First Credit Union's McGrath Pink Visa card, donates half of the card's annual fee ($20) to the McGrath Foundation. According to a Community First spokesman, for every 6000 cards they issue the foundation can employ a nurse in a regional community.
The GE Money Eco MasterCard uses 1 percent of your spending to purchase carbon offsets through Origin Energy's Carbon Reduction Scheme. For example, using the card to pay a $70 a month mobile phone bill for 12 months, offsets the annual emissions of an average large-screen LCD television set that is on six hours a day.
The great news is that the feel good factor won't leave you out of pocket.
- Community First's McGrath Pink Visa Card boasts an interest rate of 10.99 percent on purchases, cash advances and balance transfers
- Bendigo Bank's RSPCA Rescue Visa Card has an annual fee of just $24 and an introductory rate of 7.89 percent for the first six months.
- And the GE Money eco MasterCard provides 4.99 percent balance transfers for six months and 55 days interest free.
In Australia, small banks and credit unions are leading the way on charity credit cards, offering highly competitive products supporting worthy causes. Unlike the UK, where these cards are offered by institutions, our big banks have yet to embrace the concept.
If, like most Australians, you have a credit card with a major lender, switching to a charity credit card might just inspire the big banks to follow the example of their community-minded counterparts. At the very least, you'll make a difference while you shop.
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