shelter credit card

Co-op credit card to aid homeless

Shelter aims to raise £400,000 in next three months
The Co-operative Bank has launched a credit card which donates money to Shelter, a charity for the homeless.
When the card is first used the bank will donate £20 to the charity to be used on projects to benefit the homeless or people in need of housing.

A further donation of 25p is made for every £100 spent on the card.

Shelter said it anticipated that 2,000 people would take out the credit card in the next three months, triggering charitable donations worth £400,000.

Affinity cards

The Shelter Co-operative Bank card is the latest in a long line of so-called affinity cards.

A range of charities and sports clubs have given their names to a credit card, in return they receive one-off donations and a small proportion of the cash spent on the card.

But according to financial information firm Moneyfacts there can be a sting in the tail for consumers.

"Looking at the Shelter card in detail, the initial donation is higher than most cards of this type but the interest rate charged on purchases, although competitive, is far from being a best buy" said Lisa Taylor, a Moneyfacts spokeswoman.

"The danger with affinity cards is that consumers, with a conscience, forget to pay off what they owe each month and end up paying high interest," she added.