Day care expenses seem to be never-ending for parents. According to Care.com’s 2024 Cost of Care project, the average cost of center-based day care in the United States has risen over the last few years and is now more than $300 weekly.
This price varies widely based on location, and in addition to this large monthly expense, some day care centers offer ancillary products, such as internet viewing for parents, for an extra charge.
This cost will likely continue its upward trend, but the good news is that credit cards may alleviate some of the pain that comes with shelling out thousands for child care. A good first step is to ask your day care — or potential day care if you’re still in the shopping-around stage — if it charges additional fees when using a credit card as payment.
With that in mind, let’s review some of the best cards for day care expenses.
Related: The best ways to save money and earn travel rewards for kids
The Blue Business Plus Credit Card from American Express
Welcome offer: Earn 15,000 Membership Rewards points after you spend $3,000 on purchases within your first three months of cardmembership.
With The Blue Business® Plus Credit Card from American Express, collecting points couldn’t be simpler. You will earn 2 points per dollar spent on the first $50,000 in purchases per calendar year, then 1 point per dollar spent afterward with no annual fee (see rates and fees).
With TPG’s November 2024 valuation of American Express Membership Rewards points at 2 cents per point, you will be able to earn 4 cents per dollar in value back for your day care expenses if you are within the $50,000 mark.
Related: Who qualifies for a business credit card?
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Capital One Venture Rewards Credit Card
Welcome offer: Earn 75,000 bonus miles after you spend $4,000 in the first three months from account opening.
The Capital One Venture Rewards Credit Card is a great card for someone looking to earn miles without the hassle of tracking bonus categories. With this card, you will earn 2 miles per dollar spent across all purchases.
Capital One miles are worth 1.85 cents apiece, per TPG’s November 2024 valuations, making this card a solid option for anyone looking to accumulate travel rewards on everyday purchases. This card has a $95 annual fee (see rates and fees).
Related: Current welcome bonus on the Capital One Venture Rewards
Chase Freedom Unlimited
Welcome offer: Earn an extra 1.5% on all purchases, on up to $20,000 spent in the first year — up to $300 in cash-back rewards.
If earning cash back is more to your liking, the Chase Freedom Unlimited® could be the right fit for you. You’ll earn an extra 1.5% on purchases in your first year, boosting your cash-back rates for 12 months.
Outside of its 1.5% first-year bonus (up to $300 in cash back), the Chase Freedom Unlimited earns 1.5% on all purchases (along with 5% on travel purchased through Chase Travel℠, 3% on dining at restaurants — including takeout and eligible delivery services — and 3% on drugstore purchases). For no annual fee, it’s solid to use on day care expenses, especially in the first year, when it earns a total of 3% cash back outside of bonus categories (on up to $20,000 in spending) instead of the standard 1.5% it typically earns on nonbonus purchases.
Capital One Quicksilver Cash Rewards Credit Card
Welcome offer: Earn $200 as a one-time cash bonus when you spend $500 within three months from account opening.
If you prefer Capital One, the Capital One Quicksilver Cash Rewards Credit Card is another no-annual-fee (see rates and fees) product that earns 1.5% cash back on every purchase, including day care expenses.
The Business Platinum Card from American Express
Welcome bonus: Earn 150,000 Membership Rewards points after you spend $20,000 on eligible purchases within your first three months of cardmembership.
Finally, we’ve got The Business Platinum Card® from American Express, which is appealing because of its incredible perks. It does come with a steep $695 annual fee (see rates and fees) but also features a stellar welcome bonus worth $3,000 per TPG’s November 2024 valuations.
For many people, spending $20,000 in three months to earn the bonus is a massive undertaking. However, if you are able to pay ahead for child care and pay your balance off, this could be a great opportunity to score a big stash of American Express Membership Rewards points.
Related: Is the Amex Business Platinum worth the annual fee?
Bottom line
Day care is expensive, but depending on how you choose to pay this particular bill, you can earn valuable credit card rewards.
Consider using a card with healthy earnings on most expenses — even if this means choosing to pay for day care with a flat-rate reward-earning card — or a card with a steep welcome bonus you can comfortably achieve and subsequently pay off.
Apply here: The Blue Business Plus Credit Card from American Express
Apply here: Capital One Venture Rewards Credit Card
Apply here: Chase Freedom Unlimited
Apply here: Capital One Quicksilver Cash Rewards
Apply here: The Business Platinum Card from American Express
Related: The best credit cards for everyday spending
For rates and fees of the Blue Business Plus card, click here.
For rates and fees of the Amex Business Platinum card, click here.