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Warning over charity credit cards

Wed, 18 Oct 2006

Consumers have been warned that donating to charity via a credit card should not come at the expense of a competitive interest rate.

Many charity donation credit cards charge a higher rate of interest than standard cards, which can be a "costly way of giving", claimed Samantha Owens, head of personal finance at Moneyfacts.

Ms Owens suggested that consumers may find that using balance transfer cards or low-rate credit cards, then giving the difference to charity could be a more effective way of managing their money.

Alternatively, by choosing the best cashback credit cards and donating the money, users could also ensure that they are not out of pocket, she said.

"Whilst the idea of giving to charity simply by spending on your credit card or investing your savings can be a simple and effective method, make sure that the contents of your purse or wallet don’t suffer in the process," she remarked.

However, Halifax Bank of Scotland claims that using a credit card which provides money to charity will "make a difference every time you spend".


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