Best credit cards for families of October 2024
From soccer games to home-cooked dinners to family trips and back-to-school supplies, families rack up a lot of expenses. These top credit cards for families can help you offset some of those costs with excellent rewards, bonuses and perks. … View More
No matter the size, shape or composition of your family, one thing is the same across the board: Families have to spend money.
And, since all families spend money, we wanted to create a “Best credit cards for families” from our partners list to help you maximize that money you’re going to be spending anyway. What if the money you spend on groceries could earn you cash back to put in a rainy day fund? Or your fill-ups at the gas station during all those carpool trips could earn you points toward your next family (or solo) getaway? What if you could transfer those wedding charges to a card with an introductory 0% APR that would allow you to pay off the balance without accruing interest? Maybe you want to pool points with some neighbors so you can make a donation to a local school. And so on. Our top credit cards for families can help you get there. View Less
List of Winners
- CardName – Best Overall for Cash-Back Rewards
- CardName – Best for Multiple Spending Categories
- CardName – Best for Balance Transfers
- CardName – Best for Choosing Bonus Categories
- CardName – Best Overall for Travel Rewards
- CardName – Best for Travel Bonuses
- CardName – Best for Air Travel
- CardName – Best for Newlyweds
- CardName – Best for a Long 0% Intro APR Period
- CardName – Best for Dining Out
- CardName – Best for Groceries
- CardName – Best for Costco Shoppers
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Intro Offer: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
The Rewards: Enjoy 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on Chase travel; 3% cash back on drugstore purchases and dining; and unlimited 1.5% cash back on all other purchases.
Annual Fee: AnnualFees
Credit Needed: CreditScoreNeeded
PROS:
- This card offers at least 1.5% cash back on all your purchases, so you're earning a decent rate even if you aren't putting a ton of thought into your credit card points-earning strategy.
- You also get 0% intro APR for purchases and balance transfers for 15 months after account opening (then, RegAPR), which can help you to save money on interest payments.
- You can combine your rewards earned with this card in a bucket with points earned through other Chase Travel earning cards, helping your rewards bank grow more quickly.
CONS:
- At least 1.5% cash back on all purchases is a decent rate; however, if your spending is primarily in categories such as groceries or gas you could do better with a card more geared toward that kind of spending.
- There is no annual fee, but there is a foreign transaction fee, so this isn’t the best card to use for family vacations outside of the U.S.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 78.9 | 85.0 |
Rewards Program Satisfaction | 7.8 | 8.4 |
Customer Service | 7.7 | 8.6 |
Website/App Usability | 8.0 | 8.9 |
Likelihood of Continuing to Use | 8.6 | 9.0 |
Recommend to a Friend/Colleague | 7.9 | 8.1 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: New cardholders can earn a $200 bonus, which can be worth 20,000 Chase Ultimate Rewards® points, after spending $500 within the first three months of account opening.
The Rewards: Earn 5% cash back on travel purchased through the Chase Ultimate Rewards® portal, 5% cash back on up to $1,500 spent in categories that rotate quarterly (activation is required each quarter), 3% cash back at restaurants, including takeout and delivery, 3% cash back on drugstore purchases and 1% cash back on all other eligible purchases.
Annual Fee: AnnualFees
Credit Needed: CreditScoreNeeded
PROS:
- New cardholders can enjoy intro 0% APR on new purchases and balance transfers for the first 15 months, then RegAPR.
- You can earn a bonus worth $200 just by spending $500 with the card in the first three months of opening the account, which is one of the lower spending thresholds.
- This card offers other benefits such as cell phone insurance if you use the card to pay your phone bill, which can come in handy.
CONS:
- Busy families might have a hard time remembering to activate and keep up with rotating categories.
- There is a foreign_fee fee which can be expensive if you need to use your card for purchases abroad.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 74.3 | 80.6 |
Rewards Program Satisfaction | 7.4 | 7.8 |
Customer Service | 7.1 | 8.4 |
Website/App Usability | 7.5 | 8.2 |
Likelihood of Continuing to Use | 8.0 | 8.3 |
Recommend to a Friend/Colleague | 7.4 | 8.1 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Earn $200 cash back after you spend $1,500 on purchases in the first six months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
The Rewards: You'll receive unlimited 1% cash back on everything you buy and 1% cash back when you pay for the purchases. Just make sure you are paying everything off every month. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
The Annual Fee: AnnualFees
Credit Needed: CreditScoreNeeded
PROS:
- This card offers unlimited 1% cash back when you use your card for your purchases and another 1% when you pay for those purchases, totaling a potential 2% cash back. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
- If you need to transfer a balance from a high-interest card, this card offers one of the longest introductory APRs available. You can get a 0% intro APR on balance transfers for the first 18 months (then, RegAPR).
- There are no specific spending categories, so every purchase you make with the card essentially earns 2% cash back, which is one of the highest flat rates available.
CONS:
- Even though the rewards earning is simple, without tiered or rotating categories you could be missing out on higher cash back rewards.
- There is no annual fee for this card, but there is a foreign transaction fee.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 77.2 | 84.7 |
Rewards Program Satisfaction | 7.9 | 8.5 |
Customer Service | 7.5 | 8.4 |
Website/App Usability | 6.9 | 8.3 |
Likelihood of Continuing to Use | 8.2 | 8.8 |
Recommend to a Friend/Colleague | 7.7 | 8.4 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Earn a $200 online cash bonus after you use your card to make at least $1,000 in purchases within the first 90 days of card membership.
The Rewards: Earn 3% cash back in a category of your choosing from the following list: gas/EVC, online shopping (including streaming, cable, internet, and phone services), dining, travel, drug stores or home improvement/furnishings. Earn 2% cash back on your grocery store and wholesale club purchases (3% and 2% back is on the first $2,500 spent in your choice category/grocery/wholesale club purchases each quarter, then 1%). Earn 1% on all your other purchases. If you're a Preferred Rewards client with Bank of America, you can earn 25%-75% more cash back on each purchase depending on your tier (Preferred Rewards tiers are based on your average three-month balance across eligible accounts).
Annual Fee: AnnualFees
Credit Needed: CreditScoreNeeded
PROS:
- This card is popular with people who have families because you can earn cash back in a bunch of everyday categories. It awards 3% cash back in one of six categories that you choose. You also earn 2% back at grocery stores and wholesale clubs up to the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1%, as well as 1% on all other purchases.
- Since "online shopping" is one of the 3% category options, you could be earning 3% back on everything from your Amazon purchases to birthday party invitations you create and buy online. It's really a very flexible earning option (up to the quarterly cap mentioned above).
- New cardholders can earn a bonus of $200 online cash rewards if you spend at least $1,000 on purchases in the first 90 days of opening an account.
CONS:
- There is no annual fee, but there are foreign transaction fees to keep in mind if you plan to travel abroad.
- You can earn as much as 3% cash back in one category that you choose and 2% cash back at grocery stores and wholesale clubs. This is a decent rate of rewards for these particular categories, but not if your spending varies or isn't in these places. It sounds good, but only if it fits your spending habits. Also keep in mind that there is a cap of $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then you’ll earn only 1% for those purchases.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 81.1 | 80.2 |
Rewards Program Satisfaction | 8.1 | 8.1 |
Customer Service | 7.9 | 8.1 |
Website/App Usability | 8.6 | 8.1 |
Likelihood of Continuing to Use | 9.0 | 7.9 |
Recommend to a Friend/Colleague | 7.7 | 7.8 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Earn 75,000 miles once you spend $4,000 on purchases within three months from account opening, equal to $750 in travel.
The Rewards: Earn unlimited 2X miles on every purchase, every day, plus earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel.
The Annual Fee: AnnualFees
Credit Needed: CreditScoreNeeded
PROS:
- Earn a flat rate of two miles for every $1 you spend, and redeem those miles for completely flexible travel by covering a recent travel purchase with your pool of miles.
- Capital One has added some airline and hotel travel partners so you can now transfer your miles to a number of loyalty programs and possibly make those miles go even further.
- There are no foreign transaction fees for this card.
CONS:
- Flexible travel rewards are like gold, but sometimes the best values come with transferring miles/rewards to loyalty programs. This card offers that option, but the partners are fairly limited.
- While the annual fee is reasonable, if you don't see yourself using the rewards (or even using the card enough to earn rewards), you'll likely find the fee isn't worth it.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 83.3 | 76.0 |
Rewards Program Satisfaction | 8.2 | 7.7 |
Customer Service | 8.0 | 7.2 |
Website/App Usability | 8.4 | 8.2 |
Likelihood of Continuing to Use | 8.9 | 7.9 |
Recommend to a Friend/Colleague | 8.5 | 7.2 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Get up to $1,050 in Chase Travel℠ value – earn 60,000 bonus points after $4,000 in purchases in your first three months from account opening (worth $750 when redeemed through Chase Travel); plus, get up to $300 in statement credits on Chase Travel purchases within your first year. Also, Chase offers a number of hotel and airline travel loyalty partners, so you might be able to stretch that bonus even further.
The Rewards: 5x on travel purchased through Chase Travel, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
The Annual Fee: AnnualFees
Credit needed: CreditScoreNeeded
PROS:
- You can earn up to $1,050 in Chase Travel℠ value – earn 60,000 bonus points after $4,000 in purchases in your first three months from account opening (worth $750 when redeemed through Chase Travel); plus, get up to $300 in statement credits on Chase Travel purchases within your first year.
- Each year, receive a points bonus worth 10% of your total purchases from the previous year.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel. For example, 60,000 points are worth $750 toward travel.
CONS:
- The annual fee is not waived the first year, so it’s important to be sure you can earn the signup bonus and rewards offered in order to offset the cost of the card.
- This rewards program focuses on travel and restaurants so if your spending is in other categories, you might want to consider a card that awards those types of purchases.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 80.3 | 86.6 |
Rewards Program Satisfaction | 7.8 | 8.6 |
Customer Service | 8.0 | 8.7 |
Website/App Usability | 8.3 | 8.8 |
Likelihood of Continuing to Use | 8.4 | 8.7 |
Recommend to a Friend/Colleague | 8.1 | 8.6 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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All information about Southwest Rapid Rewards® Premier Credit Card has been collected independently by Cardratings.com.
So. much. luggage. That’s the standard wail of traveling families and it gets even louder when you have to pay for your checked bags. Enter Southwest Airlines, where your first two checked bags are always free. Plus, these days it’s also common for airlines to charge you if you want to pick your seats. Few families want to risk being spread out all over the plane, so you’ll pay that fee, too. Not a problem with Southwest. You get to choose your seat when you board so, in many cases, you’ll be able to sit together without paying extra.Read our full CardName review.
Bonus: New cardholders can earn 50,000 bonus points after spending $1,000 on purchases in the first three months from account opening. You'll also earn 6,000 bonus points after your card member anniversary.
The Rewards: Earn three points per $1 on Southwest purchases as well as two points per $1 on local transit and commuting (including rideshares) and on internet, cable, phone services and select streaming and one point per $1 on other eligible purchases.
The Annual Fee: AnnualFees
Credit Needed: CreditScoreNeeded
PROS:
- The rewards you earn provide an opportunity to earn a Companion Pass. You can learn more in our Guide to the Southwest Companion Pass.
- You also receive 6,000 bonus points each year after your cardholder anniversary.
- While not specifically a card benefit, Southwest is known for its policy of no change fees on tickets. That policy could certainly save you money if your plans suddenly change.
CONS:
- To get the most value out of this rewards program, you’ll need to be a frequent Southwest Airlines traveler. Otherwise, you should consider a general travel rewards or a different airline branded credit card that fits your preferences.
- The AnnualFees annual fee can isn't bad, but it isn't worth it if you aren’t able to travel enough or earn the rewards needed for award flights.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 78.5 | 77.7 |
Rewards Program Satisfaction | 7.9 | 7.7 |
Customer Service | 7.5 | 7.8 |
Website/App Usability | 7.7 | 8.0 |
Likelihood of Continuing to Use | 8.2 | 7.9 |
Recommend to a Friend/Colleague | 8.0 | 7.6 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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Bonus: Jump start your cash back earning with a one-time $200 bonus after spending just $500 on purchases during the first three months of card membership.
Annual Fee: AnnualFees
Rewards Rate: Earn 1.5% cash back on all your purchases without worrying about categories or spending caps. Plus, if you're looking for a 0% intro offer, this card has you covered with an introductory 15 months no interest on purchases and balance transfers (then, RegAPR; balance transfer fee applies.
Credit Needed: CreditScoreNeeded
PROS:
- New cardholders can earn a one-time $200 bonus after spending just $500 on purchases during the first three months of card membership.
- You can earn a flat rate of 1.5% cash back on all your purchases with no spending caps.
- Enjoy no foreign transaction fees when you use this card while traveling abroad.
CONS:
- 1.5% cash back is just .5% cash back more than the amount that almost every card awards "other" purchases. If you have an idea of your spending, you might earn more rewards with a card that specifically awards those purchases.
- There is no annual fee but, again, it awards one of the lowest rates so you might want to consider a card with an annual fee if you’ll earn more.
Current Scores | Past Scores | |
---|---|---|
Overall | 77.7 | 82.4 |
Rewards Program Satisfaction | 7.7 | 8.1 |
Customer Service | 7.5 | 8.3 |
Website/App Usability | 8.2 | 8.6 |
Likelihood of Continuing to Use | 8.5 | 8.8 |
Recommend to a Friend/Colleague | 7.6 | 8.0 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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Intro APR Offer: You could think about the money you're saving on interest as a type of bonus. Enjoy an intro 21 months 0% APR on balance transfers from date of the first transfer. Transfers must be made in the first four months. BalanceTransferFees Enjoy an intro 12 months no interest on purchases from date of account opening.
Regular APR: RegAPR
The Rewards: Once again, there aren't rewards to talk about, but you can consider the interest savings, plus the opportunity to build a solid credit history, as a form of rewards.
The Annual Fee: AnnualFees
Credit Needed: CreditScoreNeeded
PROS:
- For newlyweds or anyone planning a wedding (or for any life expenses), this card can help with some of the expenses with the 0% intro APR. This card offers a 0% intro APR for 12 months on purchases (then, RegAPR).
- You also get a 0% intro APR for 21 months from the date of the first transfer on balance transfers, with all transfers being completed within your first four months (then, RegAPR). This can be helpful if you are already paying down a balance on a card with a high interest rate.
- There are a number of extra perks and features that come with this card, making it one to keep around even though it doesn't offer ongoing rewards.
CONS:
- There is no annual fee but there is a foreign transaction fee.
- There are rewards credit cards that offer intro 0% APRs on purchases and balance transfers, though for shorter periods. If you need some extra time to pay off a balance, but perhaps not as long as this card offers, you might consider a rewards card that offers a 0% period as well as the ongoing opportunity to earn rewards.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 74.3 | 76.6 |
Features Satisfaction | 7.3 | 7.4 |
Customer Service | 7.4 | 7.8 |
Website/App Usability | 7.7 | 7.9 |
Likelihood of Continuing to Use | 8.2 | 8.2 |
Recommend to a Friend/Colleague | 7.2 | 7.6 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: Limited time offer: Earn 60,000 points after you spend $6,000 on eligible purchases on your new card in your first six months of card membership. Plus, receive 20% back in statement credits on eligible purchases made at restaurants worldwide within the first six months of card membership, up to $100 back. Offer ends 11/6/24.
The Rewards: Earn 4X points per $1 spent on purchases at restaurants worldwide (on up to $50,000 in purchases per calendar year), then 1X points; 4X points per $1 spent at US supermarkets (on up to $25,000 in purchases per calendar year) then 1X points; 3X points per $1 spent on flights booked directly with airlines or on AmexTravel.com; 2X points per $1 spent on prepaid hotels and other eligible purchases booked on AmexTravel.com; and 1X point per $1 spent on all other eligible purchases.
The Annual Fee: AnnualFees
Credit Needed: CreditScoreNeeded
PROS:
- Families can earn Membership Rewards® points which can be accumulated and used towards future family vacations.
- Earn up to $10 in statement credits monthly when you pay with your card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys (enrollment required).
- There are no foreign transaction fees which is nice if you need to use the card abroad.
CONS:
- The annual fee can get expensive but you do get dining credits which can help to offset the fee.
- American Express cards aren't always accepted as much as Visa and Mastercard. American Express is, however, always expanding its network.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 81.9 | 83.4 |
Rewards Program Satisfaction | 8.0 | 8.4 |
Customer Service | 8.4 | 8.4 |
Website/App Usability | 8.2 | 8.3 |
Likelihood of Continuing to Use | 8.6 | 8.4 |
Recommend to a Friend/Colleague | 8.2 | 8.2 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Welcome Offer: Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new card within the first six months.
The Rewards: There's a hefty 6% cash back at U.S. supermarkets (up to $6,000 per year in purchases and then 1%) as well as on select U.S. streaming services. You also get 3% cash back at U.S. gas stations and on transit, which includes taxis/rideshares, parking, buses, tolls, trains and more. Lastly, you receive 1% cash back for other purchases.
The Annual Fee: AnnualFees
Credit Needed: CreditScoreNeeded
PROS:
- The welcome bonus offer for new cardholders can go a long way towards offsetting monthly costs.
- You can earn 6% cash back at U.S. supermarkets (up to $6,000 per year in purchases and then 1%) and on select U.S. streaming services. You also earn 3% cash back at U.S. gas stations and on transit, such as taxis/rideshares, parking, buses, tolls, trains and more. You can earn 1% cash back for other purchases. These tend to be top categories for families.
- Save money with 0% intro APR on purchases and balance transfers for 12 months from the date of account opening (then, RegAPR)
CONS:
- The annual fee is high after the first year so you need to make sure you'll actually earn enough rewards with the card to make this annual fee worth it. There are several other cards without annual fees that award these types of purchases, so you’ll need to calculate what you might earn with this card before applying.
- There is a foreign transaction fee to consider, which means you won’t want to use this card on purchases outside of the U.S.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 78.5 | 78.2 |
Rewards Program Satisfaction | 7.6 | 7.8 |
Customer Service | 7.7 | 8.0 |
Website/App Usability | 8.1 | 7.7 |
Likelihood of Continuing to Use | 8.3 | 8.2 |
Recommend to a Friend/Colleague | 8.2 | 7.5 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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The Bonus: There's not a traditional bonus with this card, but that doesn't mean you shouldn't give it a look. If the ongoing rewards fit your lifestyle, that's actually much more important than a big initial bonus.
The Rewards: You get 4% cash back on eligible gas and EV charging purchases up to the first $7,000 spent each year (then, 1%). You receive 3% cash back on restaurants and eligible travel purchases, 2% cash back on all other purchases from Costco and Costco.com and 1% cash back on all your other purchases. Your rewards will accumulate throughout the year and you'll receive an award certificate once each year with your rewards for that year.
The Annual Fee: AnnualFees (but you do have to pay your Costco membership fee).
Credit needed: CreditScoreNeeded
PROS:
- This card awards 4% cash back on gas and EV charging purchases up to the first $7,000 each year and then 1%. You can also earn 3% cash back on restaurants and travel purchases, 2% cash back on Costco and Costco.com purchases, and 1% on all other purchases. In other words, lots of cash back in lots of categories common to family spending.
- You can earn even more cash back if you have a Costco Executive Membership, since that membership grants you automatic 2% cash back on qualifying Costco, Costco.com and Costco Travel purchases – and that would be on top of your credit card earnings.
- There is no foreign transaction fee, so this is a good card to use on purchases outside of the U.S.
CONS:
- There’s no annual fee for this card but you do need to be a Costco member and pay your annual Costco membership fee (which you're probably planning to do anyway if you're considering this credit card).
- This rewards program does not provide as much flexibility to redeem your rewards as other cards. Rewards accumulate throughout the year, and then you receive a rewards certificate once a year (much like with the executive membership rewards).If instant graticfication is your thing, this card's rewards probably won't do it for you.
Current Scores | Past Scores | |
---|---|---|
Overall Score | 83.3 | 86.3 |
Rewards Program Satisfaction | 8.3 | 8.6 |
Customer Service | 7.7 | 8.5 |
Website/App Usability | 8.1 | 8.8 |
Likelihood of Continuing to Use | 9.5 | 9.3 |
Recommend to a Friend/Colleague | 8.6 | 8.4 |
*Scores above reflect the results of surveys with actual cardholders. Full methodology below.
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Which Credit Card Is Best for a Middle-Class Family?
Credit cards aren’t one-size fits all, though there is likely a best card for you among the list above.
Deciding on the best credit card for a middle-class family is about getting the best bang for the buck. Families want to be rewarded for purchases while enjoying the benefits that credit cards can bring (fraud protection, extended warranties, etc.) all without breaking the budget.
While choosing any of the above cards could be a good fit for typical middle-class family, the decision can be boiled down to a few key areas.
- Decide if having an annual fee fits within the budget for your family. You’ll likely want to avoid a luxury card and none of the above cards charge more than low to moderate annual fees, but if even a $95 annual fee is out of the budget, spend some time considering the no-annual-fee options.
- Decide how you would like to use your credit card rewards. If you would like to save up some travel points to take the family on a vacation, a travel rewards credit card may be a better option than a flat-rate cash back card. If you prefer cold, hard cash, take a look at the cash-back cards instead.
- Evaluate how your family will use your new card. If you plan on purchasing primarily gas and groceries, a card that specifically rewards those categories would be a good fit. If your spending varies among categories month-to-month, a flat-rate card could be a more rewarding option. The key is to fully understand your budget and lifestyle and choose a card accordingly.
How To Choose the Best Credit Card for Your Family?
You have a lot to think about when it comes to caring for your family regardless of whether “family” means you and your favorite pup, you and your partner, you and your children or whatever other beautiful form your family takes. While we can’t tell you exactly which card is best for your given situation, we can give you some standard steps to determine that best card for yourself.
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Know your credit score and history. Credit cards really aren’t something you should just apply for a on a whim. Instead, you should take the time to know your credit score and financial situation and then narrow down the card options from there. If you have excellent credit, a steady income and a solid history with credit cards, you’re going to have a bunch of cards to choose from that offer a high likelihood of approval.
If, on the other hand, you’re building/rebuilding your credit or are perhaps just starting to have a steady income, your options may be a bit more limited. Take the time to know your credit history rather than just crossing your fingers and hoping a bank won’t look at your credit score – applying for cards for which you have a low likelihood of approval will only damage your credit. - Understand your monthly budget and your own money tendencies. A healthy credit card strategy should consider the card a portion of your existing budget rather than a way to extend what you have. In other words, you won’t suddenly have more money when you open a credit card. Use your credit card wisely and the rewards could certainly put a little money back in your wallet, but if you over spend and can’t pay the bill in full each month, the interest charges will eat up any rewards you earned. Always spend within your budget and your means.
- Consider your goals for your rewards. Are you wanting to put some cash back aside for a rainy day? Is your goal to cover the cost of your family’s plane tickets for a great vacation or two each year? Do you want to save up for some long-term goals, like paying for college? Think about the rewards that you’ll actually put to use and don’t let a flashy welcome offer draw you into a card that offers a rewards program you won’t use long term.
- Look at the fees. Make sure you understand the fees and charges of a card. In particular, determine whether the rewards or extra perks of a card are enough to more than offset any annual fee. you don’t want to just break even (that’s no fun); you want to know that you paid a $95 fee, but you redeemed rewards and perks worth more than $1,000 (just as a for instance).
Should You Add Your Children As Authorized Users on Your Credit Card?
It’s definitely worth considering. If your kid is going off to Washington, D.C., on an eighth grade field trip or off to Disney World with the marching band, for instance, you may want him or her to have a credit card, just in case. Maybe your kid is going off to college. As you may know, your son or daughter can’t get their own credit card until they’re 21 (if they’re younger and can prove that they have income, such as from a part-time job, they may be able to get a card).
So how young can your kid be, to be an authorized user? That depends on your credit card issuer. You’ll want to check with them. For instance, while American Express requires authorized users to be at least 13 years of age, Bank of America, Capital One nor any of the other major banks have minimum age requirements (at least as of this writing), so if you want your 5-year-old to have access to your credit card… well, have fun.
Why would you want your child to be an authorized user for your credit card? Well, you probably don’t want your 5-year-old anywhere near your credit card, but as your kid gets older and becomes more independent, and travels places without you, you may want him or her to have that access. Maybe. There are a few pros and cons you’ll want to mull over.
PROS OF ADDING CHILDREN AS AUTHORIZED USERS
A credit card can be a good tool to teach your kid financial responsibility. After all, you’re on a budget. You’re not going to let your kid max you out. Surely, your teen will learn something from being an authorized user.
Your college student will start building a credit history early. Yes, even as an authorized user. Your kid won’t build credit fast, but your daughter isn’t about to buy a house yet, right? She still has college, or maybe even high school, to finish. One thing to note is that not all banks report authorized users’ information to the credit bureaus, so it’s possible your child may not see any credit history impact from being added.
It may make your kid safer. Of course, you could get your kid a prepaid debit card or let him or her stuff some money in their shoe. We aren’t saying that you’re a terrible parent if you don’t make him or her an authorized user, but if your kid is traveling without you, it may make things easier if they can use your credit card. Furthermore, if your child has some forgetful tendencies, your money is actually safer on a credit card than as a wad of cash in a wallet that could be left behind somewhere.
DRAWBACKS OF ADDING CHILDREN AS AUTHORIZED USERS
It’s a big financial responsibility. Is your kid ready. Are you? Maybe your teen will max you out. Not every teenager or even young adult is ready for a credit card. Remember, their spending on your credit is, for all intents and purposes, your spending on a credit card. It will be your credit that takes the hit if they run up a massive balance you can’t afford to pay.
Credit cards can be windows to ID theft and fraud. What we said above is true: It’s safer to carry a credit card than to carry around cash. If your cash is lost or stolen, it’s most likely just gone; if your credit card is lost or stolen, federal law protects your from being on the hook for the fraudulent charges. However, it’s still no fun to jump through the hoops of canceling a card, sorting out the fraudulent from the appropriate charges, changing out any recurring payment information you have. If your kid isn’t likely to treat your card like real money, it probably isn’t quite time to make them an authorized user.
>>SEE MORE: Guide to adding children as credit card authorized users
Should You Co-sign a Credit Card for Your Kids?
Maybe. If your kid is a RESPONSIBLE college student, it might make sense. There are a lot of good credit cards for college students and graduate students, ones that offer rewards and even ones that try to encourage good spending habits.
That said, if you’re leery about the idea, especially because you think your kid is a financial disaster waiting to happen, that may be an argument for making them an authorized user instead. You’ll be liable for your kid’s spending either way, but you’re more likely to be aware of what’s happening if the overspending and money mismanagement is on your credit card and not theirs.
What Is the Best Credit Card for My Teenager?
The best credit card for a teenager is the one they will qualify for and be able to handle responsibly. For a teenager, being able to build your credit score is invaluable. Having your teenager armed with a credit card can give a parent peace of mind that they will not be stranded if they run out of gas or need to make an emergency purchase, but it can also create some worry for parents with opportunities for your teen to act irresponsibly by making purchases that they can’t afford or not paying their bills on time.
If you are set on your teen having their own card, take a look at student-specific cards as they are most likely to approve your teen (remember, by law they must be 18 to have a card on their own) for a card. Discover is well-known for its student cards, which offer similar rewards to Discover’s non-student cards and feature no annual fees or foreign transaction fees.
Best Practices for Using a Rewards Credit Card
Even if you know all of this, consider these tips something you can pass onto your kids:
Pay the balance off every month. Otherwise, the interest will wipe out the rewards you’re getting.
Don’t spend things that you don’t really want, just to get the rewards. It’s the same principle when you’re, say, coupon shopping. You have a great coupon for $3 off of almond milk. So you use it. And then as you’re drinking it, you remember, “Hey, I hate almond milk.” Earning credit card rewards, or using a coupon, only makes sense and is a good deal if you want or need what you’re buying.
Avoid cash advances. The interest on them is just crazy high. If it’s an emergency, then, sure, the cash is nice to have. But if it’s not an emergency, the interest (which starts accruing immediately) will almost certainly wipe out your rewards, and it’s just not a great idea. Plus, you typically won’t earn rewards on cash advances or on balance transfers, for that matter.
Be conscious of foreign transaction fees. If you have a rewards card, and you’re saving a lot of money, you may not be saving much if you’re using the card overseas on a trip and paying 3% extra on everything. If you’re traveling a lot, it’s best to use a credit card that doesn’t have a foreign transaction fee. None of the travel rewards cards mentioned above charge foreign transaction fees.
Be conscious of all fees. Look, rewards are all about saving money, and any fee – whether a late fee or an annual fee – can wipe out those goals. Now, many cards with annual fees are there because the credit card issuer assumes you’re going to use the credit card a lot, and you’ll save far more than you spend on an annual fee. And that’s fine logic – if you do use your credit card a lot. In any case, when you pay for anything with a rewards credit card, make sure you’re also paying attention.
A journalist for nearly 20 years, Brooklyn has published work on a broad range of topics including personal finance and business as well as travel and human interest pieces. As a finance expert, she has provided commentary on credit cards, card rewards and personal finance for outlets including Forbes, Fox Business and many others. Her own wanderlust and travel experiences...Read more
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