Green credit cards – friend or foe?

The state of the environment has been towards the top of the political agenda in the UK for some time, and as a result of this an increasing number of products and services have been going green to enable consumers to contribute more easily towards helping the environment. The latest in the long line of green products is finance, and many credit card companies have now launched green credit cards that can be used by consumers in the UK that want to give a little back by helping the environment.

There are a number of green credit cards to select from, and the benefits with these cards can vary from one card issuer to another. In some cases the card issuers will make a lump sum contribution to a green cause when the customers successfully opens an account, and will then pay a percentage per pounds spent on the card to the cause. The customer can enjoy reduced interest rates on the purchase of environmentally friendly products when using the card, as well as other benefits depending on the card issuer.

However, some experts state that banks and credit card companies may be using consumers’ concern over the environment to make a profit, and state that although some of these green cards offer competitive interest rates there are far better rates available on the market. This means that in order to contribute to environmental causes through the use of a credit card the consumer may have to compromise on value for money.

According to one industry professional: "The environment is of prime concern to many people today, so seeing financial institutions donating to green causes will please many people. You still need to be diligent in taking on any credit card, though. You need to weigh up all the benefits against any potential costs, whether those are higher rates or hidden fees. An eco-friendly card may not be the right option for everybody."

Tom Smith
10th August 2007