How to use a credit card for baby costs
Quick insights
- Choosing a credit card with rewards for groceries and drugstores may help you earn cash back on everyday essentials like diapers and formula.
- Large purchases such as nursery furniture or strollers may help you meet the spending requirements for a new cardmember bonus.
- Some credit cards offer purchase protection which might help provide a safety net if your new baby gear is damaged or stolen shortly after you buy it.
Welcoming a new baby often comes with a long shopping list of essentials, from cribs and car seats to a seemingly endless supply of diapers. While these costs can add up quickly, by using a credit card, you may be able to earn rewards on the things you need to buy. You might also unlock useful features like promotional interest rates and purchase protections.
How to earn rewards and points while shopping for baby gear
A useful credit card for new parents is often one that aligns with where you spend the most money. You may earn more by choosing a card with a "multiplier," which refers to earning more than the standard one point per eligible dollar in certain categories.
Chase offers a variety of credit cards that may fit your family's needs, including options that help you earn points to put toward future family travel or cash back to help cover the next box of diapers. Some cards offer bonus rewards at drugstores, grocery stores or restaurants, which may help new parents earn more on baby health essentials and family meals.
Some cardmembers opt to add a spouse or partner as an authorized user. An authorized user is someone you add to your credit card account who can make purchases with their own card. Both users have the opportunity to earn rewards on the same account, which could help you earn more rewards or meet the spending requirement for a new cardmember bonus faster.
Comparing cash back vs. points for family spending
With the ability to earn different types of rewards, you may want to decide which works better for your family's goals. Cash back can be used to pay down your balance or, in some programs, deposited into your bank account to help with future bills. Meanwhile, travel points may offer more value if you plan to travel, as they typically offer more redemption options with airlines and hotels.
Some credit cards periodically offer targeted offers or bonus categories. You may want to keep an eye out for these promotions, which can sometimes include baby-related retailers or seasonal deals.
Using credit card benefits to protect your new purchases
Beyond earning rewards, credit cards may provide tools to help manage your family's budget during this transition. Some cards offer a promotional annual percentage rate (APR), which is the yearly cost of borrowing money expressed as a percentage. A low or reduced intro APR could allow you to pay off other purchases, like a stroller, while reducing interest charges.
Credit card benefits like purchase protection and extended warranty protection may also be helpful when buying nursery gear. Purchase protection can help cover your new purchases against theft or accidental damage for a set period, while extended warranty can extend the period of a manufacturer's warranty on eligible items you buy with your card.
In conclusion
Using a credit card for baby expenses may be a useful way to earn back a percentage of what you spend. While your baby is busy growing, your rewards balance could be doing the same. Whether you choose a card for its rewards or a low introductory APR for big purchases, being strategic with your spending may help your household budget.
