Best eco-friendly credit cards

When it comes to selecting financial products, consumers have become rightfully concerned about the long-term impacts of their decisions. Ultimately, that’s why a range of ethical banking and investing options have come to the forefront over the last decade, and why companies roll out innovative products that aim to conserve the environment with each passing year.

There are even eco-friendly credit cards on the market today, although they don’t all work the same way. Some eco-friendly cards are offered through financial institutions who pledge to fight climate change through various initiatives, whereas others let you donate to environmental causes you care about.

If you’re in the market for an eco-friendly credit card, read on to find out which picks we recommend, how they help the environment and factors to consider as you make this important decision.

Beneficial State Bank Climate Card*: Best for fighting climate change

Why we picked it: The Beneficial State Bank Climate Card lets you donate rewards to various charities and nonprofits that actively fight climate change, and there’s no annual fee.

Pros:

• Earn 1 point per dollar spent
• Donate your rewards to climate-related charities or redeem for cash back, merchandise or travel
• Visa Signature card benefits, like zero liability protection and an auto rental collision damage waiver
• No annual fee

Cons:

• Low earning rate compared to other cash back cards
• High APR
• Charges a 1 percent foreign transaction fee

Who should apply: Consumers who want to earn flat-rate rewards they can redeem for charitable contributions should consider the Beneficial State Bank Climate Card.

Who should skip: Anyone who wants to earn a higher rewards rate with a different card and has the discipline to redeem rewards for climate-related charitable contributions on their own should look elsewhere.

Discover it® Cash Back: Best for charitable contributions

Why we picked it: The Discover it® Cash Back offers a generous rate of cash back with no annual fee, and cardholders can redeem cash back for charitable contributions to organizations like the World Wildlife Fund.

Pros:

• Earn 5 percent cash back on the first $1,500 spent in activated quarterly bonus categories (then 1 percent back); 1 percent back on other purchases
• Discover will automatically match all the cash back you’ve earned at the end of your first year
• No annual fee
• Redeem rewards for charitable contributions
• Comes with introductory APR on purchases

Cons:

• Can only directly donate rewards to partner charities (although you can redeem for cash back and donate to any organization you want)

Who should apply: The Discover it® Cash Back is a good choice for consumers who want to donate to the World Wildlife Fund or redeem their rewards for other flexible options.

Who should skip: Consider other cards if your focus is on ethical banking instead of charitable donations.

Amalgamated Bank Maximum Rewards® World Mastercard®*: Best for ethical banking

Why we picked it: As an institution, Amalgamated Bank focuses on supporting various climate-related and green initiatives, including climate justice and reducing our reliance on fossil fuels. And with the Maximum Rewards World Mastercard, you can enjoy flat-rate cash back rewards with a clean conscience.

Pros:

• Earn an unlimited 1.5 percent cash back on every purchase
• No annual fee
• Introductory APR offer on purchases and balance transfers
• $30 bonus after spending $600 within the first three billing cycles

Cons:

• High APR after introductory offer
• High balance transfer fee of 5 percent (minimum $10)
• Doesn’t let you redeem rewards toward climate charities directly

Who should apply: Consider this card if you want to work with a financial institution that focuses on issues like climate change, LGBTQ+ rights, racial justice, anti-violence and gun safety and more.

Who should skip: Pick a different credit card if you want to donate your rewards to charity directly.

Green America Platinum Visa® credit card*: Best for advancing clean energy

Why we picked it: The Green America Platinum Visa is offered through TCM Bank, an institution that fights against and donates money to build fair trading systems, advancing clean energy, limiting GMOs in our food supply and more.

Pros:

• Percentage of each purchase is donated to various climate organizations
• Earn 1 point per dollar spent
• No annual fee
• Introductory APR on purchases and balance transfers

Cons:

• No transparency when it comes to specific charities supported
• Charges a 1 percent foreign transaction fee

Who should apply: Consider this card if you want a percentage of all your purchases donated to climate-related charities on your behalf.

Who should skip: Skip this card if you want a better rewards rate with the option to donate to climate charities on your own.

Compare the best eco-friendly credit cards

How to choose an eco-friendly credit card

If you’re hoping to pick up a credit card that does something good for animals, climate change or the environment, you’ll want to keep several important factors in mind. These tips can help you wind up with the best card for your needs.

• Consider which causes you care about most. Some eco-friendly credit cards focus on combating climate change specifically, whereas others work toward a range of causes built around climate and social justice. With that in mind, you’ll want to compare options based on the causes each card issuer champions.
• Decide how you want to give back. Also know that some card issuers make charitable donations on their own, whereas others give you the option to donate your rewards to various organizations. Neither option is better or worse, but you may prefer one method over the other.
• Compare rewards programs. Eco-friendly credit cards tend to have relatively disappointing rewards when you compare to the top cash back credit cards. Either way, you’ll want to pick a card that helps you earn the most based on your spending habits.
• Look at fees and interest rates. Finally, look closely at interest rates and fees charged by cards, including the potential for hidden fees. Ideally, you’ll choose a green credit card with the lowest interest rates and fees you can find.

The bottom line

While the eco-friendly credit cards on this list aim to help the environment in some way, there are other ways to reduce your impact on the environment. For example, you can cut down on meat consumption, bike or walk more and drive less or invest in a hybrid or electric vehicle.

Also note that you can use cash back earned with any rewards credit card to donate to charities of your choosing or to give back in whatever way you see fit. With that in mind, you’ll want to compare the best rewards credit cards on the market with eco-friendly cards until you find the best card for your goals.

*The information about the Beneficial State Bank Climate Card, Amalgamated Bank Maximum Rewards® World Mastercard® and Green America Platinum Visa® credit card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.