An eco friendly credit card can make a difference in the environment in a number of ways. If you use a credit card then consider using those that will make the most positive impact. Using a credit card is part of daily life for the average American. Whether you shop online, you have a business, or you just use it for gasoline paying with credit is an accepted part of life. It is important to use credit cards in a responsible manner. One of the ways you can do that is by going green in your personal finances.

Credit card companies have never really had the reputation of being upstanding an righteous. They have traditionally been deceptive in practice. That seems to be changing as more consumers decide to walk away from credit cards completely. Credit card companies are now going out of their way to win consumers and one of the ways they are doing that is with a green credit card.

It is best to use cash only and not have credit card debt. If you do use credit pay it off at the end of the month. If you are going to have a credit card anyway why not go green in your personal finances?

These eco friendly credit cards work like a rewards program. For every dollar you spend a percentage is given to buy carbon offsets, or as a donation. By using these cards you begin to have a passive positive impact on the environment just by doing what you always do.

There are several ways that these green credit cards work. Some of them are:

Carbon offsets

Carbon offsets compensate for the carbon that is released into the atmosphere each day. Basically a percentage of the money you spend is given to a emissions reduction projects that is working toward preventing and removing an equivalent amount of carbon dioxide from the atmosphere.

Donations to various social and environmental causes

From Fair Trade coffee to the Rain Forest everyone seems to have a cause that they want to support. Some credit card companies use the rewards program to donate to these causes based on how much credit you use.

Provision for endangered species

Other companies use the percentages to provide funds for studying, housing, or protecting endangered species and their habitats.

Points for Buying Eco-Friendly products

This type of eco friendly credit card allows you to purchase environmentally friendly products with your rewards points.

Green Pay

Green Pay Master Card uses a percentage of what you spend to purchase carbon offsets. The environmental benefits include:

• 10 pounds of CO₂ reduction for each $1 of eligible net purchases for gasoline and household utilities
• 5 pounds of CO₂ reduction for each $1 of other eligible net purchases
• Independent certification for CO₂ emissions

HSBC Eco Smart

The Eco Smart card from HSBC allows you to purchase eco friendly items or make donations to the charity of your choice with your card. You get 1 point for each dollar spent.

Brighter Planet

Brighter Planet has several different programs from check cards to credit cards. On the credit card program they will buy offsets equaling one ton of carbon emissions for every $1,000 you spend. That is the same as not driving your car 2,000 miles.

A search on Google for green credit cards or eco friendly credit cards will likely turn up hundreds more. This is a popular program among credit card companies.

Credit card debt is not eco friendly, nor budget friendly. If you are going to use credit cards only buy what you can pay off every month. Don't get caught in credit card debt even if it contributes to a good cause.