Best ethical credit cards
It's hard to imagine how our consuming more -- such as using a credit card and buying ourselves lots of crap -- is good for, well, anyone. There are benefits of course, since credit cards help you with big purchases and are good for buying things online securely. If you've got to have one, then finding some form of ethical credit card is best.
What exactly is an ethical credit card, then? There's no hard and fast definition, but we nail it down as a card that either ensures a donation to an environmental or social charity, or offers some form of incentives to spend your hard-earned with eco-minded retailers.
We think the Co-op Think card is most competitive, as the interest rate is a low seven per cent for the first six months when you spend with partnered retailers like Lush and Ikea. Then it shoots back up to the regular 14 per cent, but even that's better than the Barclaycard Breathe's rate of 14.9 and American Express Red's rate of 16.9 (even if Amex Red started off at 12.9 per cent). A typical interest rate for a non-ethical credit card is around 16.9 per cent.
In terms of incentives, the Think card encourages green spending with that lower interest rate and has discounts set up for its customers at green energy provider Ecotricity, as well as at Ecofirst and Nigel's Eco Store. Breathe also gives you discounts on green home projects like insulation, and has a partnership with Ecotricity, too. And both Think and Breathe give you a break if you're paying for green transport alternatives -- plus, both the Co-op's and Barclay's physical cards are made from PETG plastic. It's less harmful to the environment because it contains almost no chlorine or other toxic chemicals found in most PVC plastic credit cards, meaning it's kinder on the planet at the end of its life.
But Amex's Red card has the cachet of rocker Bono and Product (Red), the star-studded campaign that's helping to fight AIDS in Africa. The Red card donates one per cent of any annual spending of up to £5,000 -- and then 1.25 per cent above that -- to the Global Fund. It's a pretty generous donation, considering the Think card donates 0.25 per cent (though it doesn't have a limit), with only 25p for every £100 spent going to rainforest charity Cool Earth.
Breathe, for its part, promises to donate 50 per cent of profits to the UK charity Pure, which works to combat climate change by investing in low-energy projects. But in our view, that logic's a bit twisted -- the more responsible you are about paying off your credit card bill, the smaller Barclay's profit will be and therefore the amount of money going to Pure will be less.
As you'd expect in this wired world, all credit cards have navigable sites that make checking statements, paying bills and transferring funds easy.
If we had to choose one of these, cards, we'd go for the Co-op Think card, as the Co-operative Bank has the best green and ethical track record and the rates are still competitive -- plus it's got green incentives and supports the right kind of businesses.
We think anything a credit card company does to improve ethics and help the environment is good, since most others are not exactly shining moral beacons. But in the end, we reckon if you're going to give to charity or do your bit for the planet, your credit card probably isn't the place to do it.
American Express Red Credit Card
A generous sum may go to a good cause, provided you spend lots, but it would be wiser not to rely on credit for donations Continue reading...
Barclaycard Breathe Credit Card
Going green is big business -- but by using this card you'll be a lot greener if you're well in the red Continue reading...
Co-op's Think Credit Card
Its clear ethical incentives put it ahead of rivals -- so if you must have a credit card, this is an eco-friendly choice Continue reading...
