Some Affinity Cards Come at High Costs

People are becoming more charitable, and they are looking for easy and creative ways to support their favorite causes. Affinity credit cards, which donate a percentage of purchases to a given charity, are quite popular right now. The cards often sport logos or pictures that make clear the causes close to a card holder's heart. By charging your daily purchases, you can help save the whales, make a dying child’s wishes come true, or give a little support to any one of hundreds of great charities. But what price do banks tack onto these affinity cards? Are the cards actually worth the cost?
The bank that issues an affinity card is the party responsible for making the charitable contributions. Some card holders are critical of the banks because they seem to overcompensate for their donations by charging high finance fees and interest rates. In addition, the amounts they actually donate are pennies on the dollar. Regular use of an affinity card might add up to an annual donation of $25 to support your favorite cause - very little when compared to how much you could help an organization by writing them a check.
As with any credit card, card holders who maintain a monthly balance on their affinity cards will be more affected by high fees and interest than those who routinely pay off their balance from month to month. And while contributions can be on the stingy side, some insist that it's better to give a little than not at all. For the truly philanthropic among us, affinity cards might best serve as a way to help in addition to - not instead of - more traditional donations.