You’ve heard the term “charity credit cards” but you may not have known what it meant. In short, a charity credit card is an affinity card that makes a small contribution to the charity of your choice every time that you use the card. Affinity cards aren’t just for stores, hotels, or airlines anymore. Today, many charities are joining in and reaping the benefits of these types of relationships.
Just so you know, an affinity card is one that is part of either the MasterCard or VISA network, but also bears the brand name of a store, hotel, airline, or other organization. You have seen the “Delta Air Miles” card and the “Disney Rewards Card” which allow you to accumulate points toward airline miles or kingdom stays respectively. Today, several charities are getting onboard and while you do get some rewards for yourself, you also reward the charity every time you charge.
Many charities are taking advantage of the affinity relationship including the following organizations:
World Wildlife Federation
Make-A-Wish Foundation
American Humane Society
American Cancer Society
National Audubon Society
Heart and Stroke Foundation of Canada
Mothers Against Drunk Driving
Scouts Canada
Muscular Dystrophy Canada
Each time you use your affinity card, the charity of your choice is a winner. However, please keep in mind several things before deciding whether to use an affinity card including:
--Avoid a card charging an annual fee. You’d be better off making a direct donation to the charity of your choice then putting up with an annual fee.
--Watch out for a higher than normal APR. Pay off your balance every month to avoid charges.
--In some cases your personal rewards for using the card are severely diminished when selecting an affinity card. If this doesn’t bother you, then continue as planned with the card of your choice.
Some charities are raking in millions of dollars per year with their affinity card, monies that are sorely needed to keep some organizations afloat. Check with your charity to make certain that they are satisfied with their affinity card.
Yes, an affinity card can be beneficial to you as well as to the charity of your choice. By charging most of your purchases on your card and paying off the card every month you can get the most out of your card and benefit an organization that helps others make a difference too.
By: Adam J. Heist