I my post about the new American Express Red Credit Card, I mentioned that I was a little unsure how I felt about a large company like American Express having such a product. Having read more about the Red Card on the Motley Fool though, it seems like it may actually be a reasonably competitive card, and of course, provides an easy way to donate to a worthwhile cause.
The card compares favourably against many of the top credit cards as it charges no annual fee, has a below average APR and also pays a much higher percentage to charity than most of the other charity cards.
In the comments to my previous post, Sean suggests another route for donating to charity through credit card use:
Martin Lewis in his book, “the Money Diet” suggests using a cashback credit card. The top ones pay up to 2% cashback. Then give the cashback to the charity & so that they can claim tax back on the amount donated.
Whilst it’s true that you can end up donating more this way, it does make it more long winded, so the ease of which you can donate when using the Red credit card might encourage more people to make donations.
You can pre-apply for the American Express Red Card at their website, the card itself is not launched until March.
Valid comments Rob, Martin Lewis is the master of the long winded money tip. We don’t all have the time to cahse down every last penny.
One feature about AmEx is that their cards are not as widely accepted as Visa or Mastercard. This is because they charge retailers a higher fee.