Ultimate Credit Cards Guide for Parents

When you become a parent, suddenly, you're entirely responsible for a whole new life. Not just physically and emotionally, but financially as well. In simplest terms, your life is about to get much more expensive. Between diapers, daycare, a crib, a car seat, clothes and a lot more, you must seriously adjust your budget before bringing a new baby home.

Considering the cost of raising a baby from birth to college is over $200,000, it's not entirely surprising that many parents turn to credit cards to help pay for necessities. When done correctly, credit card rewards can go a long way toward offering some financial support. It takes a lot of discipline to make credit cards work for you, so keep that in mind before rushing out to apply for a new card.

According to a USDA report, the cost of raising a child until they're 18 is $233,610. And that's per child. So, if you have a family of four, that cost suddenly jumps to $934,440. That's on top of the additional cost for you and your partner if it's a two-parent household.

Credit cards, when used responsibly, can help lessen the blow of these costs. You can earn rewards that turn into cash or travel rebates.

Here are some types of credit cards:

Parents might use credit cards to pay for school supplies, groceries, travel, gas and debt. Certain cards will work better depending on your specific needs as a parent. Whether that's a rewards credit card that offers cash back, credit cards that help build credit, or travel cards that can help you pay for your family to travel, there's an option for you.

We've narrowed it down to a few choices to give you an idea of some of your options.

Rewards credit cards will reward those who spend on everyday categories most often. They often offer upwards of 5% on these categories. Here are two examples of strong rewards cards.

When speaking with experts, one of the most recommended cards for parents was the Blue Cash Preferred® Card. If you're willing to pay a $95 annual fee, the rewards are perfect for parents who spend a lot at the grocery store and those who supply their families with many streaming services.

Here are the rewards you'll earn with Blue Cash Preferred® Card:

• 6% back at supermarkets. You'll have a cap of $6,000 per year in purchases, but if you hit that cap, you'll earn $360 in rewards for the year.
• 6% back on subscription services. Only select streaming services apply, but many of the major ones apply.
• 3% back on transit. Transit includes taxis, rideshare services, parking fees, tolls, trains, buses, and more.

At no annual fee, Discover it® Cash Back offers a lot to cardholders. Discover doesn't just focus on cash back. It offers other perks like the ability to freeze your card at any time, social security alerts if your number is found on the dark web and more.

• 5% back on rotating categories like Amazon.com, grocery stores, gas stations, and restaurants. You'll also earn an unlimited 1% back on the rest of your purchases.
• Cashback Match allows you to double the cash back you earn in your first year. At the end of the year, Discover will match anything you've earned.
• 0% introductory APR for 15 months on both new purchases and balance transfers. There is a 3% fee for balance transfers, but that's common.

When you need to pay off debt, your choices will depend on how long you need to pay off the debt and the card's value once you do. Here are our top picks:

The BankAmericard® Credit Card has long been a popular choice for balance transfers. It offers one of the higher 0% intro APR terms and now provides a small bonus that can help cardholders potentially pay off debt faster. Here are a few details worth pointing out:

• 0% APR for 18 months on both purchases and balance transfers.
• $100 online bonus offer in the form of a statement credit if you spend $1,000 within the first 90 days of opening your account.
• No annual fee. Any good balance transfer card won't make you pay an annual fee; that way, you can focus on your debt paydown.

The Chase Slate Edge℠℠ offers an appealing introductory offer and continued perks, so you'll want to continue using it even after the intro APR has ended. Plus, you'll pay no annual fee to access the benefits offered by Chase Slate Edge℠℠. Here are a few benefits to consider:

• 0% APR on purchases and balance transfers for 18 months. You'll face an APR of 16.49% to 25.24% after this period.
• Raise your credit limit after a few months. If you make on-time payments for the first six months that you have the card, you could qualify for a higher credit limit.
• Lower your interest rate each year. You'll automatically be considered for a 2% reduction in your APR when you pay on time and spend at least $1,000 within the first year.

Opening a credit card may sound counterintuitive if you need help building your credit score. But there are options for you, many of which come with no fees and are actually meant to help you improve your credit score.

With the Discover it® Secured Credit Card, you need to pay a deposit of at least $200, which then becomes your credit line. With no annual fee and cash back (rarely offered by secured cards), you may find a lot to like.

• 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. You'll also earn 1% cash back on all other purchases.
• Discover's Cashback Match offers secured cardholders a match to their cash back at the end of the first year.
• You can upgrade to an unsecured card after seven months if you've paid your bill on time each month.

The Capital One Quicksilver Secured Cash Rewards Credit Card is another secured card that prioritizes rewards while still offering a low minimum deposit. This card also charges no annual fee.

• 1.5% on all purchases, making for a straightforward rewards structure. Additionally, there are no limitations to how much you can earn.
• A $200 minimum deposit is required, but you can offer more (up to $3,000) to increase your credit limit. The deposit is refundable if you close your card or upgrade, assuming you make all your payments on time.
• Get pre-approved easily. Plus, you'll see no effect on your credit score until you officially apply for the card.

While you should always be using your credit card responsibly, it's really time to do so if you're about to become a parent. Having a child comes with a high price tag — and credit cards can help you earn rewards to pay for some things — but taking on the potential for debt isn't always the best choice for everyone.

Here are a few tips so you can ensure you maintain responsible credit card habits:

When looking at various credit cards, you may not know a lot of jargon. That's completely understandable, considering some words sound like a whole other language.

Here are some common terms to be aware of when comparing cards:

So many guides and resources exist to help the average consumer better use their credit card. After all, using your card responsibly is the only way to truly get the benefits that make credit cards worthwhile. Here are a few resources to help you get the most from your cards:

• American Bankers Association Credit Card Facts and Tips: Your most common credit card questions are answered in this guide.
• Cash Back Calculator: This calculator can help you understand how much you'll realistically earn with a cash back card. Just enter how much you think you'll spend and your cash back percentage. The calculator will tell you how much you'll earn.
• Consumer Action Families and Credit Cards Guide: This guide helps parents understand whether or not they should give their kids and teens a credit card.
• Consumer Financial Protection Bureau's Credit Cards Guide: The CFPB offers this resource for those shopping for a new card or getting their very first one. They offer resources so you can understand all the complex credit card terms and the pros and cons of each credit card company.
• Consumer Reports Tips to Increase Rewards: This guide offers tips and tricks so you can earn the highest rate possible with your grocery rewards credit card.
• LendingTree State-by-State Breakdown of Childcare Costs: Find out exactly how much it would cost to raise a child in your state by looking at LendingTree's graphic.
• Huntington Banks' Childcare Calculator: You can get a realistic estimate of major costs associated with raising a child using Huntington's calculator.