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What is a Charity Credit Card?

Charity credit cards are an easy way for people to donate cash back rewards to charities. Some of these cards will make a fixed amount donation (usually $10 or $20) when you first open your account, and some will match some of your own donations. It can be a good way to consistently support the causes that are dearest to your heart. They work just like other rewards cards, except that the rewards go to the charity with which the card is associated.

They are generally competitive with any other type of credit card, in that they may offer low introductory APR, balance transfers, and interest rates comparable to those on other cards. The added perk is that they make you feel good for using your card. Here are a few examples of charity cards.

The Kiva organization offers micro-financing loans to entrepreneurs in developing countries. You sign up with Kiva, learn about the upstart businesses that need funding, then Kiva handles the transactions that help specific projects.

The Make-A-Wish Credit Card is affiliated with the Make A Wish Foundation, which grants wishes to children with life threatening medical problems. Every time you spend a dollar, a donation is made to the Make A Wish foundation.

Bank of America offers a Humane Society of the United States credit card that donates 25 cents for every $100 in purchases you make to the Humane Society of the U.S. And you get a free tee-shirt when you open your account.

As with any credit card, you should weigh the potential benefits of a card against your particular type of spending. For example, if you tend to carry large balances from month to month, you're probably paying a high interest rate. You may be better off changing to a card with the lowest interest rate you can get, and then taking that money you would have spent on interest and donating it to your favorite charity instead.

Maximizing the benefits to the charity and to yourself basically means using your card for as many purchases as you can pay off in full every month. This way you maximize the amount donated to the charity and give yourself the gift of not having to pay interest charges.

Particularly for those with hectic lifestyles who keep meaning to sit down and write out a check to their favorite charities, having a charity credit card instead may be a good way to do some good without going to a lot of trouble.