Best Credit Cards for Daycare Expenses

Aug 4, 2019

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Daycare expenses seem to be never ending for parents. The average cost of center-based daycare in the United States is nearly $1,000 per month. Of course, this price widely varies based on location. To add to this large monthly expense, some daycare centers are beginning to offer ancillary products, such as internet viewing for parents, for an additional charge.

While these costs aren’t going to slow down anytime soon, credit cards can help alleviate the pain a bit. However, be sure when you are ‘shopping’ around for childcare in your area, ask if they have any fees when using a credit card.

Here are the best credit cards for daycare expenses.

The Blue Business®️ Plus Credit Card from American Express

With the Blue Business Plus Credit Card, earning points couldn’t be simpler. You will earn 2x per dollar on the first $50,000 in purchases per year, and 1 point per dollar afterward with no annual fee (see rates and fees).

Along with this, you will have a 0% introductory APR on purchases and balance transfers (transfers made within the first 60 days) for 12 months (then a variable APR of 14.74% to 20.74% applies) (see rates and fees).

Unfortunately, this card doesn’t have a welcome bonus, but keep in mind this product is one-third of the Amex Trifecta.

With TPG’s valuation of American Express Membership Rewards at 2 cents per point, you will be able to earn 4 cents per dollar in value back for your daycare expenses if you are within the $50,000/year mark.

Capital One Venture Rewards Credit Card

The Capital One Venture Rewards Credit Card is a perfect card for someone looking to earn miles without the hassle of spending categories. With this card, you will earn 2 miles per dollar (worth 2.8 cents, according to the latest TPG valuations) on all purchases. You can also earn 50,000 bonus miles (worth $700 based on TPG valuations) after spending $3,000 on purchases within the first three months from account opening.

To add, this card has no annual fee for the first year and then $95 after that.

Chase Freedom Unlimited

(Photo by Isabelle Raphael / The Points Guy)
(Photo by Isabelle Raphael / The Points Guy)

If earning cash back is more to your liking, the Chase Freedom Unlimited could be the right fit for you. You will earn $150 after spending $500 on purchases in the first 3 months.

Along with this, you will have a 0% intro APR on purchases and balance transfers for 15 months from account opening (then variable APR of 16.49% – 25.24% applies).

The Business Platinum® Card from American Express

(Photo by Eric Helgas/The Points Guy)
(Photo by Eric Helgas/The Points Guy)

This one is a long-shot, but it is worth mentioning. The Business Platinum Card from American Express is an appealing card because of the incredible perks. However, it does come with a steep $595 annual fee (see rates and fees), but there is a reason to mention this card when it comes to daycare services.

The welcome bonus for The Business Platinum Card is currently up to 75,000 bonus points: 50,000 bonus points after you spend $10,000 and an extra 25,000 bonus points after you spend an additional $10,000 all on qualifying purchases within your first 3 months of Card Membership.  For many people, spending $20,000 in 3 months is a heavy ask, especially since this card is a charge card. However, if you are able to pay ahead for childcare and pay your balance off, this could be a perfect opportunity to score a lot of American Express Membership Rewards points.

If that pill is too much to swallow at once, you may want to consider the traditional Platinum Card® from American Express to score some valuable points.

Bottom Line

Paying for daycare is never a fun expense. However, it can be mitigated with some major points earnings.

One other points to keep in mind – if your daycare service does not accept credit cards, ask if they will accept from a bill pay service like Plastiq. While there are fees to use Plastiq, it may just be worth it to earn that next welcome bonus.

For rates and fees of the Blue Business Plus card, click here.
For rates and fees of the Amex Business Platinum card, click here.

American Express® Green Card

WELCOME OFFER: 30,000 Points

TPG'S BONUS VALUATION*: $600

CARD HIGHLIGHTS: up to $100 annual CLEAR statement credit, up to $100 annual LoungeBuddy statement credit, 3x points on travel and transit, 3x points on restaurants worldwide

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

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More Things to Know
  • Earn 30,000 Membership Rewards® points after you spend $2,000 on purchases on your new Card in your first 3 months.
  • Earn 3X Membership Rewards® points on all eligible travel, from subway swipes and window seats to hotel stays and city tours.
  • Earn 3X Membership Rewards® points at restaurants worldwide.
  • Receive up to $100 per year in statement credits when you use the American Express® Green Card to pay for your CLEAR® membership at select airports and stadiums across the U.S. and Permissible Biometric Scanning Technology terms: eye scanning, irises scanning and fingerprints scanning.
  • Use the American Express® Green Card to purchase lounge access through LoungeBuddy to any of the lounges in the LoungeBuddy network – no memberships, elite statuses, or first class tickets required. Earn up to $100 in statement credits per calendar year on your LoungeBuddy purchases.
  • No Foreign Transaction Fees.
  • $150 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
See Rates & Fees
Annual Fee
$150
Balance Transfer Fee
See Terms
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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