Co-op card gives Shelter help for the homeless
The Co-operative Bank has launched a credit card which gives money to Shelter, the charity for the homeless.
When customers first use the card, the bank will donate £20 to the charity to be used towards funding the cost of projects for the homeless or people in need of housing.
Shelter predicted that 2,000 people would take out the in the next three months, triggering charitable donations worth £400,000.
The Co-op/Shelter card is the latest in a long line of ‘affinity’ cards which ally themselves to a particular charity or sporting club.
“The affinity card is a great idea, but there is sometimes a price to pay and people should still compare credit cards for the best rate,” said financial adviser John Parker.
“Although the cause that Shelter supports is a very worthwhile one, the card itself is far from being in a Best Buy table. If you don’t clear your balance each month, the interest payable is more than on some other cards.”
But some consumers do not worry about this factor. “I have an Arsenal Football Club credit card which is nowhere near being competitive – but I just don’t care,” said Gunners fan Tony Wilson.
“I compared credit cards for all the other cards I have in my wallet, but the Arsenal card is the one to which I have the closest affinity. I pay it off in full every month anyway.”