Best credit cards for families of January 2025

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.

1. 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.
2. 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.
3. 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.
4. 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.