2008: The Year of Credit Card Green

Credit card companies are offering ways for you to donate to environmentally friendly causes and charities.

When you think of green, you might think of towering trees, or meticulously manicured lawns. But credit cards? The only green that's associated with them is money! However, the "greening" of credit cards is the latest trend by companies to entice people to sign up for their services, while at the same time offering a relatively painless way to donate to environmentally friendly causes and charities.

Conscious credit cards

You can sign up for a green credit card with HSBC, GE, Bank of America, Wells Fargo, or Barclays. Instead of accumulating points for plane tickets or Walt Disney World, the rewards programs of these companies donates a portion of your purchases to a "green" cause, such as the World Wildlife Fund, Greenpeace, or a litany of other charities and groups.

Generally, these credit card companies have a "favorite" charity or cause with which they're associated. American Express Red, for example, supports ending the AIDS crisis in Africa. However, it never hurts to ask your current credit card company if they offer a card that supports environmentally friendly causes of your choosing. If they don't give you the options that you'd like, search the Internet for one that's aligned with your values.

Read the fine print

Carefully review your agreement with the credit card company that you're considering. In order to donate to a cause that you support, you may have to pay a slightly higher interest rate. Some companies put the rewards that you've earned into a general "environmentally friendly" fund. In that case, your money may not actually go to a fund you support. You may think that you're supporting wildlife, but the money is going to education. While this is still a worthy cause, it may not be one that's close to your heart. Take into consideration how the money will be used. Some companies say they'll put it towards a cause such as greenhouse emissions, but are vague on exactly how that money will be spent.

Alternatives to credit cards

It's uplifting to know that you can support a cause or charity that's important to you through your normal daily purchases. This option may be more attractive than letting your points accumulate for a flight you may never take. However, instead of increasing your credit card debt, consider contributing money regularly into a bank account, and giving it directly to the charity of your choice. You'd save money on credit card fees, and have more direct contact with the cause.

Using your credit card to support your favorite charity is a noble and painless way to do something worthwhile. There are many ways to be "green." Just pick a shade that's just right for you.