When it comes to credit cards, there are a lot of myths floating around about what is and isn’t ethical.
People seem to think that if they get an ethical credit card, they will be saving the environment and their wallets at the same time. But is this really true? In this guide, we will debunk some of the most common myths about ethical credit cards and let you know if they are worth your time or not.
What is an ethical credit card (and how does it work?)
An ethical credit card is a credit card that uses sustainable and environmentally friendly practices.
This can include using recycled paper for cards and envelopes, partnering with renewable energy providers, or donating a portion of each purchase to charity.
There are a few different types of ethical credit cards available, so it’s important to do your research before applying.
Some cards have specific environmental causes that they support, like renewable energy or rainforest preservation. Others focus on social responsibility, such as donating a portion of each purchase to a charity or providing fair working conditions for their employees.
How do you know if a credit card is ethical or not?
There is no one-size-fits-all answer to this question, as different credit card issuers have different policies and practices. However, most ethical credit cards offer the same benefits as regular credit cards – they just come with a conscience!
Some of the most common benefits of ethical credit cards include:
- Reduced environmental impact due to sustainable practices
- Donation of a percentage of each purchase to charity
- Support for renewable energy initiatives
- Fair working conditions for employees
Perhaps the most obvious benefit is that you’re supporting a cause you believe in. Many ethical cards also offer rewards such as cashback, airline miles, or points that can be redeemed for merchandise or gift cards.
Another advantage of ethical cards is that they can have lower interest rates than traditional cards. This can save you money over the long run, especially if you carry a balance on your card.
Finally, using an ethical credit card can help you build or improve your credit score. This is because responsible use of a credit card is one of the factors that lenders look at when assessing your creditworthiness.
You can usually find out an issuer’s sustainable and environmentally friendly practices by reading their website or looking for the ecolabel.
What are the benefits of using an ethical credit card over a regular credit card?
There are a few key benefits of using an ethical credit card over a regular credit card.
A lower interest rate
First, ethical credit cards usually have lower interest rates and fees than regular credit cards. This is because the issuing company wants to encourage sustainable and environmentally friendly practices.
Second, many ethical credit cards offer rewards for spending money on things like renewable energy or shopping at eco-friendly businesses. This can be a great way to save money while you’re helping the environment!
A lower carbon footprint
Third, ethical credit cards often have lower carbon footprints than regular credit cards. They use sustainable and environmentally friendly practices like renewable energy or recycled paper.
How to choose an ethical credit card that’s right for you
You may want to consider a few things when looking for an ethical credit card.
The first is whether the card issuer is aligned with your values.
Some issuers support environmental or social causes, while others do not. You’ll also want to look at the card agreement terms and make sure that there are no hidden fees or penalties.
You’ll want to consider whether an ethical credit card is worth the extra cost.
Generally speaking, ethical cards have a lower interest rate than specialty and premium credit cards. This means the rewards you earn and benefits are unique to ethical cards. So, it ultimately depends on your individual circumstances.
Top myths about ethical credit cards
Myth One: Ethical credit cards don’t offer any benefits
This first myth is definitely not true!
In fact, many ethical credit cards come with various perks and benefits. For example, some cards offer cash back, while others provide rewards points that can be used for travel or merchandise. So, if you are looking for a card with some extra perks, an ethical credit card is definitely a good option.
Myth Two: Ethical credit cards are more expensive than regular credit cards
This myth is also false.
In fact, many ethical credit cards have lower interest rates and annual fees than regular credit cards. So, if you are looking for a more affordable option, an ethical card is worth considering.
Myth Three: All ethical credit cards are the same
This is definitely not true.
There are various ethical credit cards on the market, and each one has its own unique set of benefits and features. So, it is important to do your research before you decide which card is right for you.
Myth Four: Getting an ethical credit card will save you money
This may or may not be true, depending on the specific card that you choose.
Some ethical credit cards offer great savings opportunities, while others do not. So, it is important to compare the different cards and find one that offers the best deal for you.
Myth Five: Ethical credit cards are only for people who care about the environment
While it is true that many ethical credit cards come with eco-friendly features, this does not mean that they are only for people who care about the environment.
In fact, there are a variety of different ethical cards that cater to a variety of different interests and needs. So, no matter what your priorities are, you should be able to find an ethical credit card that suits you.
Myth Six: Ethical credit card companies charge more for their services
This is another myth that is just not true.
In fact, many ethical credit card companies actually have lower rates and fees than traditional credit card companies. So, if you are looking for a more affordable option, an ethical credit card company is definitely the way to go.
Myth Seven: You have to be wealthy to afford an ethical credit card
There are a variety of different ethical credit cards that cater to a variety of different budgets. So, no matter what your income level is, you should be able to find an ethical card that fits your needs.
Myth Eight: Ethical credit cards charge higher interest rates
Ethical credit cards often have lower interest rates because they are more sustainable for people and the planet. They also don’t have hidden fees, which means you’ll save money in the long run.
When you use an ethical credit card, you support businesses that align with your values. You can feel good knowing that your purchases contribute to a better world.
Myth Nine: Ethical credit cards are not as widely accepted as regular credit cards
This is another myth that is just not true.
In fact, many ethical credit cards are accepted at a wide variety of different stores and businesses. So, you should have no trouble using your card at the places that you usually shop.
Myth Ten: It’s difficult to find an ethical credit card company that meets your needs
Actually, this could not be further from the truth.
There are several different ethical credit card companies to choose from, and each one offers its own unique set of benefits. You’re sure to find one that meets your specific needs.
So, is an ethical credit card really worth it?
Now that we’ve dispelled these common myths, what does this mean for you?
Well, it ultimately depends on your specific needs and priorities.
If you are looking for a card with some extra perks, an ethical credit card is definitely a good option. However, if you are more interested in finding a low-cost alternative, there are a variety of different cards to choose from. So, it is important to do your research before making any decisions.
Ultimately, the bottom line is that ethical credit cards are worth considering for various reasons.
They can help you to save money and help the environment, all while supporting causes that are important to you.
The truth about ethical credit cards is that they come with various benefits and features. So, it is important to do your research before you decide which card is right for you.
Aspiration Zero, the credit card that helps you go green
If you’re looking for a credit card that not only helps you go green but also rewards you for it, look no further than the Aspiration Zero.
We work to reduce your carbon footprint and give you extra cashback rewards with every swipe. Plus, our application process is simple and straightforward, so you can start enjoying the benefits of this card as soon as possible.
Apply today and start making everyday spending work for the environment!