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 14.99% to 20.99% 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 16.74-25.49% 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 50,000 points (worth $1,000 based on TPG valuations) after spending $10,000 in the first three months, and an extra 50,000 points after spending an additional $15,000 on qualifying purchases also within the first three months from account opening. For many people, spending $25,000 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 you were to charge a full $25,000 in the first three months, you would end up with 125,000 points (worth $2,500), according to TPG valuations.

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.

2018 TPG Award Winner: Mid-Tier Card of the Year
Chase Sapphire Preferred® Card

NEW INCREASED OFFER: 60,000 Points

TPG'S BONUS VALUATION*: $1,200

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*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 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • No foreign transaction fees
Intro APR on Purchases
N/A
Regular APR
17.99% - 24.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

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