As the nation gears up for Comic Relief's Red Nose Day this week, well-meaning banking customers have been warned that charity card deals may not be the best way to donate.
Typically, people with charity credit cards find that between 0.25 per cent and 0.4 per cent of their total spending is given to good causes of their choosing, according to financing website uSwitch.com.
However, the financing specialist suggests that a person who spends £6,000 per year on their charitable credit cards may be surprised to find that good causes only receive £15 in extreme cases.
Nick White, director of personal finance at the financing website, commented on the revelation.
"Donating through charity credit cards is quick and painless but consumers need to realise that not all cards offer the charity - or the consumer - a good deal," he said.
Mr White added that banking customers may find it more cost-effective to arrange a standard cashback credit card and then set up a standing order to give money directly to good causes.
People who wish to switch to another credit card provider may need to check the small print of their current deal to see if they will need to pay sizeable balance transfer fees.
These are typically a set percentage of the total credit card debt, meaning people with large deficits will incur larger fees than counterparts who have borrowed relatively small amounts.
News Side
Choose cashback credit cards over charity deals, financing website suggests
Mon, 12 Mar 2007
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