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4 Ways Credit Cards Can Help You Be Generous to Others

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charitable credit cards

If you wish you could be more generous but are on a tight budget, you might be surprised to hear that certain credit cards could actually remedy that situation. Rewards credit cards, as they are called, let you earn points you can redeem in a number of ways – and sometimes with no out-of-pocket cost at all. If you use your card regularly and always pay your bill on time and in-full, these cards let you earn rewards you can easily give to others.

4 Ways Credit Cards Can Help You Be More Generous

There are myriad ways to be generous with credit cards, and the best option for you will depend on the type of rewards card you end up with and the type of “gifts” you want to shower others with.

If you want to be generous with someone else’s money, rewards credit cards offer a wonderful opportunity in that respect. Here are a few strategies to consider that might make sense depending on your goals:

Redeem points for gift cards or merchandise to give away

If you want to earn merchandise or gift cards you can give away, the easiest way to do this is with a basic cash back credit card. By and large, cash back cards let you earn at least 1 percent back for every dollar you spend. Some even offer a signup bonus or “bonus categories” that offer up to 5 percent cash back each quarter. And since many cash back cards come without an annual fee, you can give these “gifts” away without forking over a dime of your own.

Book travel for the people you love

If the people you love are into travel, a top travel credit card might make it easy to treat them from time to time. By using a travel credit card, you can earn points good for hotel stays, flights, and more. Better yet, most travel credit cards and loyalty programs make it fairly easy to book travel for someone else. Simply put your friend or relative’s name on the reservation instead of your own and you’re good to go.

Give your points to the charity of your choice

Some credit cards offer an option that will let you gift your points directly to a charity of your choice – for example, the Discover it® and several other Discover products. According to the Discover website, Discover cardmembers can donate their points in a few different ways – either through Discover Giving, or by donating their Cashback Bonus to charity. To expedite the process, Discover partners with 1.5 million charities that make donations with your Discover card seamless. With this option, you can also donate anonymously, donate in honor of a loved one, or leave a suggestion on your how your donated funds are used.

Sign up for a co-branded, charity-focused credit card

If you want to sign up for a credit card geared specifically to a charity, a handful of credit cards were created for this reason. The Susan G.Komen® Credit Card from Bank of America, for example, donates a percentage of its profits to the Susan G. Komen® Foundation, plus lets you earn cash back. According to the fine print on the credit card website, Bank of America is dedicated to raising $3 million for the foundation with this credit card and an accompanying checking promotion through December 2020. If you want to be a part of it, all you need to do is sign up for the card and start using it for all of your regular purchases.

Final Thoughts

Being charitable can be difficult when you don’t have a lot of wiggle room in your budget, but credit cards make it easier to earn “fun money” to spend on the charities – or the people – you love. Just remember to read the fine print before you sign up for any rewards credit card. With a thorough understanding of the terms, conditions, and the card’s rewards program, you’ll be in the best position to be charitable without harming your own finances.

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