Large numbers of people in different parts of the world are using charity credit cards and you can use them for doing some charity to needy people. This type of card has been launched in the market such that people can lend help to needy without actually visiting and encountering them. Other name that is being used for describing this kind of card is known as affinity cards. It has been around twenty years since when various financial institutions started using this type of cards and they helped non-profit organizations in the best manner possible. Generally, this type of cards have a logo of charity group on their top such that they can be distinguished easily from other types of cards.
Before you take charity credit cards, it is mandatory to understand how these cards work. Whenever the cardholder makes a purchase using the card, a small portion of the purchased amount is transferred to non-profit organizations. The more you use your card for making purchases the more amount of money would be transferred to the nonprofit organizations. It is possible that the portion given to charity varies from one credit card Company to another but the most commonly given share is 0.25 percent.
If you plan to apply for such type of card then you should be aware of the fact that these cards are not similar to other kinds of cards being used by people for purchasing products and services. Firstly, credit cards meant for charity carries annual percentage rate with them as well. The percentage rate varies anywhere between 15 and 22 percent. If you want card with lower percentage rate then it would be possible if you put in some efforts. Second fact of which one would be familiar with is annual fees is charged by cardholders and you should be ready to pay it.
One feature that lures individuals towards credit cards is the reward system and incentives that the cardholders get after using their card. However, you should know that the numbers of incentives offered with affinity credit cards are very less and you would not be availing many benefits with the use of this type of credit cards. Credit cards falling into this category have been divided into different categories and some of the categories include environment, animals, gender, health and a few more. Users can choose the category of cards depending on their own choice and thinking.
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