Recently, there are any Banks of America who launched a new Brighter Planet credit card. A card which have allow the owners to empathy for the world by using their credit card while every dollar they spend will earn points which are then converted to purchase carbon offsets.

Actually, this is our opportunity to care the world more seriously. Bank of America is not the first credit card company who entrap this idea and convince their member could save the world by shopping. Have you done that?

While there’s nothing bad with these cards, the idea that we can change the world by using a credit card is good, but do not stop thinking that spending a lot will help the world. It can be dangerous to your wallet if you allow this idea. If you think this ‘charity through shopping’ is a good idea and you can afford your debt then go on.

Before you go on, think about the quote below

Think about one of these cards this way: If you spend $10,000 on a charitable card that pledges one percent of your purchases to a given charity, you would be “donating” $100 to that charity, assuming that all of that money indeed reaches the charity, which is not a sure thing. That’s not a lot of money, relative to the amount you spent. If you carry a balance on the card, you’ll quickly find that you owe much more than you are contributing. A $10,000 balance carried on a card at ten percent interest for a year means that you will owe an additional $1,000, give or take depending on how your card calculates balances. Net loss to you: $900. (Incidentally, affinity cards such as these typically charge some of the highest interest rates in the business because they want to take advantage of your loyalty to the card and they have to cover their program costs.) If you spend thinking that you’re helping some cause, you may find yourself overspending in order to up your “contributions.” You can find yourself on a slippery slope to big-time debt because all along you thought you were helping the charity, but you were really helping the credit card issuer.

In addition to being dangerous for your wallet, these cards might not be helping as much as you think they are. By the time you work your way through all the fine print on many of these cards you find that the points expire, or they don’t accrue the way you thought they did, or there are caps on the amount of points you can earn and contribute, or if you make a late payment just once all your points are forfeited, or certain purchases don’t count, or the money doesn’t go directly to the cause you thought you were supporting or that, once administrative costs are taken out, your points don’t go as far as you thought. There are all kinds of loopholes that make these cards work in favor of the issuer, not the charity or cause. Credit card companies are wired to help themselves, not charities.

If you really want to save the world by your money, you can give to the charity directly. In fact, they allow you to take a tax deduction on money you donate directly, while points earned on a credit card can’t take the tax deduction, money given directly is likely to be put to more immediate use than points on a card.

Direct contributions give you a more personal connection to the charity you want to help. If you want to use a card for charity, I would recommend using it as only a small part of your donation budget. You can use the card to supplement your gifts, but give the majority of your time and money directly. May the world will save better and thank for your care.

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