Charity credit cards could do better

This Friday sees the return of Comic Relief, prompting the nation to think about how it can help those in poverty.

One obvious route is through charity credit cards, however research from price comparison site moneysupermarket.com shows these cards aren't as generous as they could be.

Steve Willey, head of credit cards at moneysupermarket.com, said: "Make sure that by acting charitably, your finances don't become a charity case. Charitable cards, while commendable in theory, are let down by the small percentage of profits that actually end up in the pockets of the charities.

"If the majority of activity on your credit card is through purchases, then your most charitable option is to get a card with the longest zero per cent offer on purchases and give some of your savings to the charity of your choice.

"If, for example, you spent £500 per month on the Nationwide Comic Relief card (which by charity card standards is relatively generous), just £36 will have been donated to Comic Relief after a year. In contrast, the non-charitable Halifax One Online Special card, which offers zero per cent on purchases for 12 months, would save you over £500 in interest.

"Donating some of the money you saved with Halifax One would enable you to make a whopping charity donation.

"The same holds true if you have debts, but would still like to donate. Virgin has a 15-month zero per cent balance transfer offer that would save you over £300 on a £2,000 transfer, compared to simply making the minimum monthly repayment on your Comic Relief card.”