5 - 2012

How Your Credit Cards Can Help Charity

While it’s no secret that credit card companies earn billions of dollars of revenue each year from the merchants and cardholders that they service, most people don’t know that credit cards can actually help out charities pretty significantly. Certain credit card issuers are more altruistic than others, and certain credit cards make donating to charities cheaper and easier than others. This article will outline what you need to know if you’re interested in ensuring that you are being charitable with your credit card usage.

Capital One Credit Cards

Capital One has a charitable donation service called the Capital One No Hassle Giving program. Through the No Hassle Giving program, you can donate any amount of dollars to a charity, and that charity will receive your entire donation instead of having to pay a percentage of the donation as a fee to Capital One.

Discover Credit Cards

Discover, another major credit card issuer, offers many high cash back credit cards. What you may not know, however, is that you can set up your account to automatically donate your cash back bonuses to charity. Discover has numerous partnerships with select charities that you can elect to receive your donation instead of receiving it yourself.  Discover credit cards are a great alternative from short term loans online due to the lower interest rate.

Citi Credit Cards

Citi lets cardholders donate their ThankYou rewards points to the American Red Cross at the rate of 100 points for every dollar. If you want to donate to another charity, however, the rate is much steeper, so the charity of your choice would not be receiving as much as if you were to donate to the American Red Cross. These donations also cannot be written off in your year-end taxes.

You can compare Citi credit cards in order to determine which one would allow you to donate to charity the most.

Chase Credit Cards

The Chase Freedom credit card allows cardholders to earn 5% cash back in rotating categories such as gas, restaurants, movies, travel, and more. From October to December, however, you can earn 5% cash back on all your donations to charity. Using the Chase Freedom credit card is a good way to earn a little bit of cash on the donations you would already be making during the holiday season.

All in all, there are some very solid options currently being offered by credit card issuers that will allow you to give back to charity. Most rewards programs will also allow you to donate rewards points to charities in the form of cash, but just make sure to read the fine print to ensure that the charity is receiving most, if not all, of the money.

This article was written by Logan Abbott, the editor of Logan has over a decade of experience writing about credit cards and personal finance.

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