Are you active in the gay community? Are you passionate about gay rights? If so, you might want to choose your credit card according to your belief in advocacy. Both the Rainbow card and the Human Rights Campaign card benefit the gay community through the respective associations. This is a great way to show your support each time you make a purchase, while earning a few rewards along with your good deeds.

The Rainbow Card

The Rainbow card is a Visa credit card issued from Bank of America. It carries no annual fee and a six-month introductory APR of 0%. After that, the interest rates go up to a variable 11.99% - 23.99%, depending on your credit rating and your history with Bank of America. The account also comes with security fraud protection and access to BoA’s MyConcierge service.

One of the great things about the Rainbow Card is that cardholders get one point for every dollar spent. You can later redeem points for cash back, gift certificates and airline tickets, starting at a total of 5,000 points ($25 cash). Points expire in five years, however, and you have to use your card quite often in order to reap any rewards.

The Rainbow Card offers a 20-day grace period on new purchases, but interest rates are calculated based on the average daily balance including new transactions. If you make purchases on the card and carry a balance over into the next month, you no longer have access to that same grace period.

Usage of the Rainbow Card benefit the Rainbow Endowment, which is a funding institution that works with gay advocacy groups. Affiliated organizations include The AIDS Information Network, Gay and Lesbian Advocates, the National Youth Advocacy Coalition and Women’s Educational Media.

The HRC Card

The HRC Card is affiliated with the Human Rights Campaign, which is an advocacy group fighting for “gay, lesbian, bisexual and transgender equality” (hrc.org). They work to end prejudice, hate crimes, workplace discrimination and a host of other issues that plague the gay community at large.

Washington Mutual issues the HRC Card, which carries the Visa logo, and it carries many of the same benefits as the Rainbow Card. It has a 0% introductory APR, with a variable interest rate thereafter. There is no annual fee, and you also earn points with this card. It carries a high 23.99% cash advance APR, but the grace period is longer at twenty-five days.

Which One Gives More?

Obviously, you’ll want to support the gay community in the best way you know how, which means determining which card, between the Rainbow Card and the HRC card, gives more to the groups they represent.

According to RainbowCard.com, Bank of America gives ten cents of every transaction to the Rainbow Endowment, which is considerable. Of course, you don’t want to confuse this generous gift; it isn’t ten cents for every dollar, but ten cents for every transaction. A purchase of $500 will give the same to the Rainbow Endowment as a purchase of $50.

Unfortunately, the HRC Card Web site (providiancard.com) does not disclose the amount of money donated per transaction. They iterate that a “portion” of the funds used on each card benefits the Human Rights Campaign, but no specific numbers are given. When I called Washington Mutual, I was told that the amount donated depended on the transaction and was left to WaMu’s sole discretion.

Furthermore, the Rainbow Card gives updates on the amount donated from your card on each credit card statement, which is not the case for the HRC Card. This might have a bearing on your decision if you want to keep track of your good deeds.

Civil unions, which have been adopted mainly for same-sex couples, are still in their infancy in the United States. There is plenty of controversy surrounding this concept, particularly from the conservative point of view, and only four U.S. states currently recognize them (VT, NH, NJ, CN). Political issues aside, however, there are a few implications of a civil union that many people simply don’t consider.When two people get married, the federal (and consequently the state) government recognizes their credit profiles as joined. The two individuals might have radically different credit scores, but they share the same debt, and one partner’s mistakes might negatively affect the couple for loans and lines of credit. With civil unions, however, credit issues become muddled because the federal government does not recognize the union as legal.

In 1996, the federal government passed the Defense of Marriage Act, which states that even though individual states can adopt Civil Union laws, other states are not obligated to recognize them and they are not legally entitled to the same rights as married couples. For example, if you enter into a civil union in Vermont, which began allowing them in 2000, you might find that your situation changes if you move to Texas or Arkansas.

This obviously impacts couples credit because your credit profiles are not legally joined. You might have a more difficult time applying jointly for a loan or a credit card. Legally, civil unions are not a means of establishing kinship, which means that you aren’t technically “related” to the person with whom you establish the union.

It is important to remember that no two people—whether married or joined by a civil union—share credit scores or profiles together. However, it can be difficult to encourage financial institutions to recognize a partnership when applying for loans or lines of credit. They might weigh a poor credit score more heavily than they would with a married couple, and there is always the possibility of encountering personal bias among lenders.

The good news, however, is that you shouldn’t have a problem in states where civil unions and registered partnerships are covered under the law. In Connecticut, for example, couples bound by civil unions are granted every right and freedom of married couples except for the title of marriage. They have housing rights and kinship rights and should not have a problem with sharing finances.

If you are a member of a civil union, the best thing you can do is be open about your situation. When you talk to lenders and bankers, let them know that you are a registered couple up front so that there are no problems with miscommunication. If you decide to apply for a personal loan or auto loan jointly, indicate as much before you begin the paperwork. This will make the entire process much easier.

If you do encounter problems, be adamant about the observations of your rights. Lenders are not legally permitted to discriminate based on sexual orientation. However, if you feel that you are being judged based on you and your partner’s relationship, it might be better to find a different financial institution at which to conduct your business. Financial matters are much easier to deal with when added stress doesn’t accumulate.

You will also find that, with civil unions, separating from your spouse might not be as easy when it comes to financial matters. Legally speaking, there are no rules or guidelines to dividing assets when the members of a civil union separate, which means that all of those issues must be worked out between the two individuals. It is always a good idea to discuss this matter before committing, then write down your intentions if you and your partner ever decide to call it quits.

Gays and Lesbians have the assumption that they have more discretionary income than many straight families.  Marketers tend to send a lot of ads our way that involve lots of spending on things we really do not need.  This is why we need to look into setting a budget and watching things we spend money on for our family at home or just for ourselves.

Setting a household budget for a gay family is all about setting financial priorities and making sound decisions about spending.  If you are trying to save for a vacation or retirement, or just looking for a way to free up more cash, setting a budget is the way to do it.

To set a budget for your household, the first to do is to calculate total monthly income.  When you think about income, only consider regular, reliable sources of income such as your job, child support, or alimony.  Since you can’t be certain of variable sources of income from one month to the next, it is best not to include them.

Next, determine the total amount of monthly expenses.  When you set a budget for your household, you must take into account the financial needs of each household member.  Consider the expenses that are necessary to for survival like rent, utilities, transportation, and food as well as fees for the children’s school and extra-curricular activities.  Write down each of these expenses and the associated monthly cost.  Then total them up.

Subtract the total household expenses from the total income to determine how much money will be left over after all the bills have been paid.  If the result is a positive number, that’s good.  You have enough room to save money or take a vacation.  If your result was a negative number, don’t fret, there may be room for adjustment.

Take a look at your itemized list of expenses and decide if each item is a required or optional expense.  For each of the items you listed, ask yourself, “What will happen if this expense is not paid?”  Many of the items will have an obvious answer.  If you don’t pay your rent or mortgage, you will likely be evicted or foreclosed.  If you don’t pay your utility bill, the service will be disconnected.  Denote all your required expenses.

Your list of expenses might include some luxuries that are disguised as a necessary expense.  Do you have cable television?  This is an optional expense that can be eliminated free up cash in your budget.  Cutting off your cable television can save hundreds of dollars a year.  You can make tradeoffs so that you don’t completely cut out home entertainment.  For example, if you cancel your cable television, you can sign up for an online movie rental service.  You’d be surprised at all the little ways you can free up more cash in your budget through a close examination of your spending.

Do you really need that Gucci Handbag?
Do you really need to eat out every night?
Do you really need an iPhone that costs $600 when you can get a touch screen Palm Treo for $199?
Probably Not.

Another thing to look at is how much you are spending on your credit card payments.  You may look into consolidating all of your bills into one which in some cases decreases your interest.

Learn ways to organize and spend your money more wisely.  This will make your money go further and make the gay household much happier in the long run.