What You Should Know Before Choosing Charity Rewards Cards

Charity rewards credit cards are a relatively new feature in the credit card industry and one which has gained a lot of attention because of the benefits it can offer. Charity rewards cards give a percentage of the money that you spend to a charity of your choosing; the charity typically depends on the card that you select. This benefits the charity that you are supporting and allows you to give back to the world around you without spending any money out of pocket. It can also make you look good if you’re a small business owner who wants people to know that you make efforts to contribute to the world around you.

However, not all is great with charity rewards cards. There are some things that you should be aware of before choosing to use a charity rewards credit card, things that could cause you to change your mind about just how beneficial the card might be. Here are four of the biggest issues to be aware of when choosing a charity rewards card:

1. The amount that the charity receives is minimal. Charity rewards cards do a good thing in the sense that they do indeed give money to worthwhile charities. However, the amount that they give is very, very low – it’s typically less than half of one percent of the amount that you have spent on the card.

2. The charity may not use the rewards money in a way that you support. This is a problem with giving to charities through any method. You can not control how the charity spends its money. If you’re truly interested in being involved with a charity group then you may want to volunteer time instead of money and keep your credit card rewards for yourself.

3. The amount of money that you donate through charity rewards credit cards can not be written off as tax deductible. This would not be the case if you were to actually make a cash donation. So you don’t get anything back for your giving. Many people consider this to be such a big drawback that they don’t see the point of having a charity rewards card.

4. The terms of the charity rewards credit card are not typically favorable to you. When getting a credit card, you should be looking for low interest rates and minimal transaction fees. These are less likely to be available with most charity rewards credit cards than they are with cards that are designed specifically to reward users.

There are great things about charity rewards credit cards. They do give a little bit of money to some good causes and don’t require you to pay out of pocket to give back. And there are some out there with favorable terms for the card holder. But there are also flaws with these credit cards that you should be aware of before determining that these are the right cards for you – and the right way to give back to the world around you.