Every new parent needs to look into the right credit card for the emerging family. Let’s face it babies are expensive, even more so with the first child. Items are needed like car seats, cribs, diapers, pictures, bottles, strollers, etc… Financial strain can take hold quicker than a new parent would imagine. Why add so much unneeded financial stress? Obtaining a credit card that is right for the new spending is a must. Here is a list of some of the most rewarding credit card for new parents.
New Family New Spending Habits.
Before baby came around most spending was done at places like restaurants and movie theaters. Now with a new family the fun continues, but those spending habits will become more centered on the grocery store and baby supplies. Shopping habits will become localized to primary locations. It is important for new parents to find the right credit card that offers the best rewards on these new purchases.
Rewards on Groceries
The Blue Cash Preferred Card by American Express is a top choice as it offers 6% cash back for spending up to $6,000 a year at U.S. supermarkets. It also offers 3% cash back on purchases made at U.S. gas stations and some U.S. department stores. The Blue Cash Preferred Card offers 1% cash back on other purchases.
This is a great credit card for new parents. New card members will receive a 0% introductory APR on all purchases and transfers the first fifteen months. If spending reaches over $1,000 within the first three months, card members will receive $150 back. This is an easy amount to reach in a new family between diapers, baby formula, and standard groceries.
The only drawback to the card is the $75 annual fee. However, this fee easily pays for itself in rewards if one is spending over $100 a month on gas and groceries. That is why this card is a top choice credit card for new parents.
Localized Spending Rewards
Target offers its customers an all-in-one shopping experience. This is a good thing especially if these parents are REDCard members. The Target REDCard offers a 5% cash back reward on all target purchases. Later on, card members can select their child’s school to receive 1% of purchase amounts as donation. Better yet, there are no annual fees. There is really nothing further to be said on the great benefits offered by this credit card for new parents.
It’s an easy choice as Amazon can supply a new parent with almost anything they need for the new baby. Now Amazon has starting rewarding those for their purchases. This is why the Amazon Rewards Visa Card is a top choice credit card for new parents.
The Amazon Rewards Visa Card offers 3% cash back on all Amazon purchases. Card members receive 2% cash back on all gas station, restaurant, and drugstore purchase, and 1% cash back on all other purchases. So no matter where the spending happens the rewards are available. There is no annual fee for this card, and it offers an added bonus of a $30 Amazon gift card when approved for the card.
Rewards for the Future
Some new parents are not needing immediate rewards, but would rather use rewards towards their child’s future. If that is the case then this is a must credit card for new parents to consider.
The Fidelity Investments 529 College Rewards Card will deposit 2% cash back and rebate earning on the child’s 529 college savings account. The earnings made with the 529 account will grow tax-deferred until the child is ready for college. Better yet, this reward will allow him/her to use this money towards tuition tax-free.