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Green Credit Cards Real Value Or Just Cashing In?

By: Mark Bartley

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'Green' credit cards are becoming increasingly popular amongst the UK's environmentally aware financial customers. The UK Payments Administration organisation APACS has said that there is currently a major change in how credit card providers think about green credit, with many already providing green credit cards and others seriously considering providing an environmentally bias option for customers. As the environment, climate change and issues such as deforestation become more important to customers, banks are finding ways of providing credit cards that work as normal cards but have a little something extra to try and tackle some of the most important environmental issues.

The agenda was really set by Barclaycard, who launched their 'Breathe' credit card in July 2007. The card, which acts as a normal credit card, differs in that it donates 50% of its profits to carbon reduction projects. This set the benchmark for other card providers, who quickly saw that there was a large opening in the marketplace for cards that support green issues. There are banking organisations that have long been associated with 'ethical' banking, but the big four have perhaps taken a little longer to take up the idea of green credit cards. That is now being addressed with a good selection of ethically based credit cards now available from most major credit card providers.

The only issue with green credit cards is that you do have to choose the one you want very carefully. Nearly all green credit cards donate a certain percentage to environmental projects, so choosing one is a matter of studying their policies to find one that matches your own personal ethical standpoint. While the principle may be one that you agree with, you do have to think about how you use your credit card to ensure that the cause you wish to support is benefiting. Many credit card providers offering green cards make a donation on your behalf. This money is usually taken from the interest that banks earn on outstanding balances. So if you clear your credit card bill every month, you are actually forcing the bank to use some of its profits to make that donation. If you do clear your balance every month, it might be a better move to use an ordinary credit card that offers cashback and then donating that amount you receive from your provider annually to a charity or environmental organisation of your choice.

You also need to consider what organisations a green credit card supports. Make sure you do your research before picking a green credit card. The green lobby is a powerful one, and many organisations that claim to have a green agenda have been accused of not being as environmentally aware as they would like you to believe. Make sure that the organisation your chosen green credit card supports has impeccable credentials and has the support of recognised organisations.

Green credit cards have similar APRs to ordinary cards, although they can also offer extra perks for customers like reduced rates on rail or bus tickets and discounts and lower interest rates on energy saving products. But as with all credit card deals, check the small print to see how using a green credit card could help you shop more ethically. Alternatively, you could choose a charity credit card that works closely with a selected charity organisation such as the World Wildlife Fund or aid organisations.

The best way to find a green credit card is to use a comparison site. By using a comparison site, you can find a card that suits your lifestyle and your personal position regarding environmental issues, but still provides you with all the convenience of using a credit card. It is possible to use 'green' credit cards, and as we all become much more aware of the fragile nature of our planet, ethical banking and finance is going to be a growing market over the next few years.

Article Source: http://depositarticles.com/

This is one of several useful finance guides by Mark Bartley helping describe credit cards and other credit options.

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