Which Credit Card Is Best For Families?
Raising children today is more expensive than ever before – between daycare and educational costs, food, clothing, and healthcare, it’s no wonder that many parents are feeling strapped for cash.
Luckily, though, there are some credit cards on the market today that can help ease the burden of paying for your family’s needs by rewarding you for the spending you’re already doing. Of course, no credit card is going to make shelling out all that money every month easy, but at least you’ll know that you’re earning cash back every time you swipe your card.
So which credit card is the best for families? Take a look at the information below to find out.
Blue Cash Preferred® Card from American Express
Most families spend big bucks on groceries and gas, which means that the Blue Cash Preferred® Card from American Express is just the ticket to earning serious cash back. Take a look at the card’s family-friendly features:
- 6% cash back at U.S. supermarkets (on up to $6,000 in spending annually — then 1%)
- 3% cash back at U.S. gas stations and select U.S. department stores
- 1% cash back on all other purchases
- $200 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months. Terms Apply.
- 0% on Purchases and Balance Transfers for 12 months, and then the ongoing APR of 13.99% - 24.99% Variable APR
The Blue Cash Preferred® Card from American Express is one of the best cash-back cards out there, but what makes it perfect for families is that it provides the highest rewards in categories that people with children spend a lot in every month. Since rewards are redeemed as a statement credit, this means substantially lower credit card bills.
The only real drawback to this card is that it has an annual fee of $95. But the card will almost certainly pay for itself if the bulk of your monthly spending is being done in high rewards areas.
>>More: How to Maximize Credit Card Rewards When Shopping
First runner up: Blue Cash Everyday® Card from American Express
The Blue Cash Everyday® Card from American Express is very similar to Blue Cash Preferred® Card from American Express, but may be more appropriate for smaller families whose monthly shopping bills aren’t huge. Take a look at the card’s details:
- 3% cash back at U.S. supermarkets (on up to $6,000 in spending annually — then 1%)
- 2% cash back at U.S. gas stations and select U.S. department stores
- 1% cash back on all other purchases
- $150 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months. Terms Apply.
- 0% on Purchases and Balance Transfers for 15 months, and then the ongoing APR of 13.99% - 24.99% Variable APR
As you can see, the Blue Cash Everyday® Card from American Express offers the same features as the Blue Cash Preferred® Card from American Express, but with a lower rewards rate. It might not seem sensible to choose the Blue Cash Everyday® Card from American Express, but the major benefit to this card is that it carries a $0 annual fee. If your monthly spending is too low to make an annual fee a worthwhile expense, the Blue Cash Everyday® Card from American Express might be better for you.
Second runner up: Chase Freedom®
While American Express might have the market cornered on credit cards for families, the Chase Freedom® is no slouch. Take a look at its details:
- 5% cash back on up to $1,500 in spending on rotating, quarterly bonus categories
- 1% cash back on all other purchases
- Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
- 0% on Purchases and Balance Transfers for 15 months, and then the ongoing APR of 15.99% - 24.74% Variable APR
- $0 annual fee
In the past, the Chase Freedom®’s rotating bonus categories have included many family-friendly expenses like gas and groceries. Even so, the card isn’t as generous with cash back on groceries as the Blue Cash Preferred® Card from American Express and the Blue Cash Everyday® Card from American Express, and you’ll have to keep track of the bonus categories in order to maximize your rewards. But if your family spends a lot on gas, and if the Chase Freedom® continues to offer gas as one of its bonus categories, you’ll be earning 5% back at the pump for a nice chunk of the year.
The takeaway: Having a family means doing a lot of shopping, so why not start earning cash back on the purchases you’ll have to make anyway? Choose one of the cards above and start getting rewarded for your family’s spending today!
Family image via Shutterstock
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