Responsible credit cards from community development banks and credit unions create benefits for people and communities nationwide, while offering you all the conveniences you expect from a credit card. They make a great choice for anyone seeking a credit card.
Since many people are new to community banks and credit unions, they often have questions about how responsible, green credit cards work. People often have questions about the process of switching to a new credit card.
Here are common questions and answers about switching to a responsible credit card, with thanks to our allies at This! Is What We Did for answers to some of these questions.
How does a community development bank or credit union that issued the credit card benefit from my credit card transactions? If there is a non-profit group tied to the card, how do they benefit?
With each of your transactions, the community development bank or credit union and any partnering non-profit organization featured on the card, benefit financially from your credit card transactions. For cards that benefit nonprofit groups, with each purchase made using the card, a percentage of the interchange income is split between the bank or credit union and the non-profit group, providing both entities with a revenue stream to support their missions.
Will my credit card with a community development bank or credit union work overseas?
Yes. Credit cards issued by community development banks and credit unions use the Visa or MasterCard networks, and the cards will work anywhere that a Visa or MasterCard issued by a megabank will work.
Can I use my responsible card for online purchases and bill paying?
Yes. Your responsible credit card operates just like a conventional credit card. You can use it to make online purchases, pay bills, or anything else you would use a conventional card for.
Can I earn points redeemable for rewards or cash back with my responsible credit card?
Many responsible credit cards offer point programs redeemable for merchandise, cash, or services. Contact the financial institution or nonprofit organization that benefits from your specific card for information on their awards program.
Can I use my responsible card to withdraw cash from ATMs?
Yes. You can use your credit card to withdraw cash from ATMs that accept your card, subject to the terms of your card. Check the listing on the ATM to see whether or not a fee will be applied. If the ATM accepts Visa or MasterCard, then you may not be charged.
How secure is my responsible credit card?
Your responsible card has all the security of any credit card. You have all the same legal protections against theft or loss that you have with any other credit card.
Can I manage my responsible credit card account online? Can I get a paperless statement with my responsible credit card?
Online accounting and electronic statements are often available – check with the bank or credit union issuing the card.
Whom do I contact for customer service for my responsible credit card?
The customer service number for your responsible credit card is located on the back of your card.
If I end my airline credit card issued by a megabank, will I lose my airline miles?
Once your airline miles are transferred to your frequent flier account, your current miles are yours to keep. You will not be able gain more miles after you cancel your airline credit card. This is the same for all airline-bank partnership cards (for example, the Southwest Visa card issued by Chase), but not all miles-earnings cards (for example, the Chase Sapphire card). Learn more.
Will closing a long-held credit card negatively impact one’s credit score? How can one maintain a good credit rating if one ends a long-held credit card?
The short answer is, it can. The average age of your open accounts affects your score, but other factors have a greater impact on your score. This article from Nerdwallet compares the different factors. You may want to explore opening a new sustainable credit card with an equal or higher credit limit to help balance out the cancellation, as well as following these steps to close accounts safely. The impacts of closing a credit card account are temporary, and can be offset by other factors like using a new card with an equal or higher credit limit and maintaining a credit-utilization ratio below 30% (the lower, the better). If you are planning on making a big purchase (e.g., a house) or you are a renter and looking to move soon, you may want to wait until those processes are completed before ending a long-held or high-limit credit card.
Can opening a new credit card lower your credit score?
Opening a new credit card can potentially lower your credit score in the short term. When you apply for a new card, the company will likely do a hard inquiry into your credit history, which may temporarily lower your score. In the long-term, opening a new account and using the card responsibly (maintaining a ratio below 30%) will help your credit score.
Are Visa and Mastercard green?
Unfortunately, any mega-corporation is not likely to be “green,” in part due to investment and shareholder practices. For example, asset managers BlackRock and Vanguard are major shareholders for both Visa and Mastercard, and they are also major funders of fossil fuel projects worldwide. Only you can decide what is “green enough” for your personal situation. For now, our top focus is to put pressure on the worst climate-bad megabanks -- so we encourage folks to prioritize moving away from Chase, Citi, Wells Fargo, and Bank of America, and to announce your move loudly and widely.
Are you ready to switch? Try one of these better cards now.
And remember, please use your credit card responsibly: Only charge the amount of purchases you know you can re-pay.
