Best eco-friendly credit cards

Climate change is a pressing issue that affects everything from transportation to diets. With the threat increasing, people are looking for new ways to help the planet. What most don’t recognize is that rethinking how they manage their money is an easy way to make an impact.

Finances are more than your spending habits. Where you decide to put your money, the method you use to spend it, and how you invest it can all directly affect the environment.

Even better, banks are starting to recognize this, from taking steps to be carbon neutral to rewarding consumers for electric vehicle purchases to letting consumers donate rewards points to charities with climate initiatives. When all else fails, money talks, so it’s important to think about what yours is saying.

Editor’s picks for the best eco-friendly credit cards

Here’s what you should know about the best eco-friendly credit cards on the market:

Sunrise Banks Max Cash Preferred Card* – Best rewards card

• Rewards rate: 5 percent cash back on two categories of your choice (up to $2,000 per quarter, then 1 percent), 2 percent cash back on one everyday category, 1 percent on all other purchases
• Welcome offer: $150 when you spend $500 in three months
• Annual fee: $0

What makes it green: Sunrise Banks is an institution that focuses on social impact and community involvement. They’re one of the few banks that is a Certified Community Development Financial Institution and a member of the Global Alliance for Banking on Values. They’re also a certified B Corporation, meeting the highest standards for social and environmental impact.

Who this card is for: Sunrise Banks seeks to provide credit opportunities to as many people as possible with options ranging from consumer cards to business cards to secured cards. At the same time, the Sunrise Banks Max Cash Preferred Card is on par with rewards cards like the Citi Custom Cash℠ Card. With rewards rates up to 5 percent, an intro APR on balance transfers and no annual fee, you can earn just as easily with this card as with a traditional credit card.

Amalgamated Bank Maximum Rewards World Mastercard* – Best flat-rate card

• Rewards rate: Unlimited 1.5 percent cash back on all purchases
• Welcome offer: $30 back when you spend $600 within 3 months of opening account
• Annual fee: $0

What makes it green: Calling themselves “America’s socially responsible bank,” Amalgamated Bank touches a broad range of causes, including social, racial and environmental justice. They’ve set initial targets to decrease their emissions by 49 percent and increase their solar power usage by 2030. In addition, they are exploring investments in emission removal technology. By being a cardholder, you aid in their ability to invest in this goal.

Who this card is for: The Amalgamated Bank Maximum Rewards® World Mastercard® is a great choice for those who are often on the go or spend their money in various places. Although the welcome bonus is low, you still get a standard flat rate on rewards. You also get to enjoy Mastercard benefits while knowing your bank is keeping environmental initiatives a priority.

ATMOS Card* – Best debit card

• Rewards rate: 5 percent cash back on sustainable brand purchases
• Welcome offer: N/A
• Annual fee: N/A

What makes it green: The ATMOS card allows you to donate to climate nonprofits with every purchase with their Round-Up feature. Purchases made on the card will be rounded up to the next dollar, and the loose change is donated to a cause you choose through the bank’s app. You also can change which organization you donate to in real-time. Plus, you’ll earn 5 percent cash back every time you buy from a sustainable brand.

Who this card is for: This is perfect for cardholders who want to directly affect change. Knowing who or what your money is helping takes the mystery out of your giving. The additional 5 percent cash back on sustainable brands is a nice personal bonus you can use to treat yourself or another charity.

Varo Believe Secured Credit Card* – Best secured card

• Rewards rate: N/A
• Welcome offer: N/A
• Annual fee: $0

What makes it green: The Varo Believe Secured Credit Card cuts out the middleman in what could be a potentially popular solution in the future. Because Varo is a neobank and has no physical location, its carbon output is automatically lower than that of traditional banks. Plus, Varo offers cash back opportunities with select brands. It is not only healthier for the planet but also makes it more affordable for you, since lower overhead costs usually translate to lower fees. The bank is also an FDIC member, meaning your money is insured, which isn’t the case with all neobanks.

Who this card is for: This is for the non-traditional cardholder looking to build their credit. For those whose main financial tools exist on their phone, whether through an app or a digital wallet, this is a great way to take the first step into banking.

U.S. Bank Cash+ Visa Signature Card – Best traditional card

• Rewards rate: 5 percent cash back on two categories of your choice (up to $2,000 in combined purchases per quarter, then 1 percent) and 5 percent on prepaid air, hotel and car reservation made through the Rewards Travel Center; 2 percent cash back on one everyday category; 1 percent back on all other purchases
• Welcome offer: $200 online cash reward after spending $1,000 within the first 120 days of account opening
• Annual fee: $0

What makes it green: U.S. Bank is one of many banks to create environmental initiatives in the past few years. They’ve taken a big step forward by making EV charging eligible for 5 percent cash back, on par with the cash back rate for gas. Along with their partnership with GRID Alternatives and their Clean Energy Trust, U.S. Bank is putting its best foot forward for its 2050 carbon neutral goal.

Who this card is for: The U.S. Bank Cash+® Visa Signature® Card is definitely a go-to for electric vehicle owners, especially for those who want to stay with a more traditional bank. It’s a good choice for a rewards credit card that you don’t need to pair with another card to make up for value.

Green America Card* – Best “just for the planet” card

• Rewards rate: 1X points on all eligible purchases
• Welcome offer: Intro APR offers on balance transfer and purchases
• Annual fee: $0

What makes it green: Green America is a bank that aims to make an eco-friendlier economy. They directly donate to nonprofits that support advancements in clean energy, green businesses and improving food and trade systems. They also provide information on eco-friendly banks as well as socially responsible investing.

Who this card is for: For consumers looking for intro APR offers. The Green America Credit Card may not be the most rewarding long-term. Still, it does have a lengthy intro APR offer and interest rates that can be lower than the national average, depending on your creditworthiness. So, if you’re looking for a card with the sole goal of protecting the environment, this is a pretty good choice.

Honorable mentions

Aspiration Zero card*

• Rewards rate: Up to 1 percent on all purchases when carbon neutral
• Welcome offer: $300 statement credit when you spend $3000 in first 3 months
• Annual fee: $60

What makes it green: The Aspiration Zero credit card’s goal is to help you neutralize your carbon footprint, mainly through planting trees every time you make a purchase on your card. You can track your progress on your app to see how close you are to reaching a negative carbon footprint. Once you reach carbon zero, you can start earning 1 percent cash back. Plus the card is made mostly of corn, making it better for disposal later.

FutureCard Visa Debit Card*

• Rewards rate: 6 percent cash back on FuturePartner purchases, 5 percent cash back on sustainability purchases
• Welcome offer: N/A
• Annual fee: N/A

What makes it green: The FutureCard Visa® Debit Card takes a different approach to climate change. Instead of focusing on planting trees or donations, it encourages people to create better spending habits, or “climate-smart spending.” They reward 6 percent cash back on their sustainable partnerships, 5 percent on eco-friendly expenses such as public transport, EV charging, thrift shop purchases and more. It’s not a credit card, but the rewards still add up. To keep its footprint, the FutureCard is a digital card with physical versions available on request.

Bank of America Customized Cash Rewards credit card

• Rewards rate: 3 percent cash back on one category of choice (gas, online shopping, dining, travel, drugstore or home improvement); 2 percent cash back at grocery stores and wholesale clubs (up to $2,500 of combined 3 and 2 percent category purchases each quarter, then 1 percent); plus 1 percent on all other purchases
• Welcome offer: $200 online cash reward after spending $1,000 within the first 90 days of account opening
• Annual fee: $0

What makes it green: While it’s the most recognizable bank on the list, Bank of America has been scrutinized in recent years for its investment in the oil industry. In response, they have pledged to invest 1 trillion dollars in sustainable business initiatives and set a goal to be carbon neutral by 2050. They also plan to make all their cards from recycled plastic, starting at the beginning of 2023.

As for the Bank of America® Customized Cash Card, it is one of the best cards for online shopping, which some research suggests may reduce vehicle emissions compared to in-store shopping.

What makes an eco-friendly credit card?

The definition is slowly but surely expanding, but a green credit card has a focus on helping to fight climate change. This may mean either the card directly rewards consumers for more mindful purchases with cash back on EV charging instead of gas or a bank that is going carbon neutral or donating to charities that help the environment.

Still, there are factors to keep in mind like any other credit card, such as welcome offers, rewards categories and fees. Even when considering a card with a charitable element, you still need to make sure it’s the right financial tool for you.

How to choose an eco-friendly credit card

Consider causes

Because of the complexity of climate change, often the card will focus on a few key areas. Some cards focus on conservation or national parks, while others focus their efforts on their carbon footprint. You should take a similar approach and research which bank and card align with how you want to contribute.

Compare rewards rates

Though having charitable elements, at the end of the day, it’s still a credit card that directly impacts you. It’s important to have a card that benefits your spending habits and is affordable. Luckily, many of the cards on this list have no annual fee.

Think about versatility

Whether bank or card, it’s important to consider how the card can expand your financial portfolio. For example, the Amalgamated Bank Maximum Rewards World Mastercard can be good to pair with a more traditional rewards card with bonus categories. For cards that have a bank that takes on most of the charitable heavy lifting, using them for investments or high-yielding saving accounts can help them continue their efforts.

Learn more: 12 ways to go green with your finances

Compare eco-friendly cards

Is an eco-friendly card right for you?

For most people, yes. Eco-friendly cards vary widely in their perks and features. Because of this and the range of accepted credit scores, this type of card is a good option for many people. Often they come with welcome bonuses and rewards rates that are similar to traditional cards, so your spending habits determine which one is best for you.

That said, these cards tend to have no annual fee so, while they don’t come with upfront costs, they can be limited regarding bonus categories and benefits. For people who need more from their card, pairing an eco-friendly card with a more feature-heavy card is an option. For example, consider pairing a card like the Amalgamated Bank Max Rewards Mastercard with a card that has a top cash back rate on purchases like groceries or dining out.

*The information about the Sunrise Banks Max Cash Preferred Card, Amalgamated Bank Maximum Rewards® World Mastercard®, ATMOS Card, Varo Believe Secured Credit Card, Green America Card, Aspiration Zero Card, and FutureCard Visa® Debit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.