Seen On

3 On Your Side: Green Rewards Credit Cards

PHILADELPHIA (CBS 3) ― On this Earth Day, are you doing your best to help protect the planet? Now credit card companies are getting into the act, too.

Move over airline miles and cash-back incentives. Credit card reward programs are now going green. "What they allow you to do is rack up points that you can use to support various environmentally-friendly causes," says Curtis Arnold of CardRatings.com.

A growing number of issuers are now offering green rewards. Citibank allows you to cash in points for a variety of eco-friendly merchandise. You also can support green projects. According to Citibank's Rob Rosenblatt, "For 3600 points, the cardholder can actually arrange for 25 trees to be planted."

Both Citibank and Wells Fargo offer renewable energy certificates that support wind farms that offset damage caused by carbon dioxide emissions. "At the initial redemption threshold at 5,000 points, they can purchase a 50-dollar certificate and that equates to offsetting electricity usage of a household for about six months." says Nancy Beaver from Wells Fargo.

You can also use points to make donations to environmental groups. American Express has more than 18,000 eco-charities to choose from. Also every time you use Bank of America's Sierra Club card, a contribution is made to the organization. According to Orli Cotel at the Sierra Club, "We can use the money for all sorts of great conservation work to help protect parks, clean air and water."

The green benefits of these cards often come at higher interest rates, something you need to be mindful of, especially if you tend to carry a balance. The interest rates on reward cards are usually one percent higher than a plain old credit card without the perks.

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)