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The Capital One Walmart Rewards® Mastercard® is no longer available to new cardmembers.
A lot changes when you have a child, and that includes your everyday expenses. From buying packs of diapers in bulk, to frequenting the grocery aisles for baby food and browsing Amazon for newborn everything, your now-expanded shopping list may mean it's time to open a credit card that fits your growing family's needs.
The best credit cards for new parents are those that reward the categories where you spend the most. Whether it's a rewards card or a cash-back card, there are many options to choose from that help ease the financial burden of becoming a new parent.
Below, Select rounds up eight common spending categories for new parents and the best corresponding credit card to use for each.
Best credit cards for new parents
- For making the grocery store rounds: Blue Cash Preferred® Card from American Express
- For the times when you forget to pay your credit card bill: Citi Simplicity® Card
- For earning money back: Citi Double Cash® Card
- For driving to appointments and playdates: PenFed Platinum Rewards Visa Signature® Card
- For the frequent Target run: Target Circle™ Card
- For squeezing in a workout: U.S. Bank Cash+® Visa Signature® Card
- For filling up your Amazon cart: Prime Visa (see rates and fees)
- For kickstarting your kid's college fund: Fidelity® Rewards Visa Signature® Card
For making the grocery store rounds
The Blue Cash Preferred® Card from American Express is a low-fee card with generous cash-back rewards and useful ongoing benefits, such as a monthly Disney Bundle credit. (Enrollment required for select benefits mentioned)
- High cash-back earnings for U.S. supermarkets and streaming services
- Intro-APR offer for purchases and balance transfers
- No annual fee for the first year
- It's less rewarding after the first year because of the annual fee
- Bonus rewards for U.S. supermarkets are capped
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- $0 intro annual fee for the first year, then $95.
- Enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49%-28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
New moms and dads will be happy to learn that the Blue Cash Preferred® Card from American Express offers the highest cash-back* rate at U.S. supermarkets at 6% (on up to $6,000 per year in eligible purchases, then 1%). We calculated that the average American can earn $310 in cash back each year when they do their shopping at qualifying supermarkets. If you're a parent looking to maximize cash back on that never-ending grocery list, this card is for you.
For loyal grocery shoppers at the bulk discount retailer Costco, it may be worth considering the Costco Anywhere Visa® Card by Citi (see rates and fees). Its robust rewards program offers 2% cash back on all eligible purchases from Costco and Costco.com.
In addition to high grocery rewards with the Blue Cash Preferred Card from American Express, there's 6% cash back* on over 20 select streaming subscriptions, including popular services like Netflix, Spotify and Disney+ — which may come in handy during a future toddler temper tantrum
The Blue Cash Preferred Card has a $0 introductory annual fee for the first year, then $95. (see rates and fees). It can be offset, however, by the cash back you earn and the discounts you get through the money-saving Amex Offers, which provide extra points at participating retailers (enrollment required).
For the times when you forget to pay your credit card bill
The Citi Simplicity® Card may not earn rewards, but it can still save you money due to its amazing intro-APR offers.
- One of the longest intro APR offers for balance transfers
- No annual fee
- No rewards
- No welcome bonus
Now that your life just got a whole lot busier, it's only normal that other things may sometimes fall by the wayside — like paying your bills on time. We always recommend you pay your credit card balance on time and in full every month to avoid paying interest, but if you find yourself sometimes slipping, the Citi Simplicity® Card may be right for you.
The card has a guaranteed no penalty rate and no annual fee.
The Citi Simplicity® Card also ranked on Select's list of the best balance transfer credit cards because it has one of the longest 0% intro APR periods out there, offering you a huge stretch of time to pay off any revolving credit card debt while starting a family. New card members can get 0% intro APR for 18 months on balance transfers and purchases (after 17.49% - 28.24% variable APR) from the date of account opening. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5). This can be helpful if you have a large balance or if your cash flow doesn't allow you to pay off debt within the 6-, 12-, 15-month time periods of other balance transfer cards.
For earning money back
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- No annual fee
- Travelers face a foreign transaction fee
- Intro APR only applies to balance tranfer
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% - 27.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
With all the additional spending ahead of you, it helps to have a credit card that simply lets you earn cash back on all of your purchases.
The Citi Double Cash® Card is one of the best no-annual-fee credit cards because of its straightforward and flat-rate, cash-back rewards program. Cardholders earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
With no limit to the amount you can earn back, new parents can really cash in on spending for the newborn in their lives. Cash back can be redeemed for a statement credit or direct deposit, and you don't have to worry about activating bonus categories and tracking your purchases with this card.
For driving to appointments and playdates
PenFed Platinum Rewards Visa Signature® Card
Rewards
5X points on gas purchases at the pump and electrical vehicle charging stations, 3X points on purchases at the supermarket (including most Target and Walmart locations†), restaurants, and TV, radio, cable, streaming services
Welcome bonus
15,000 points when you spend $1,500 in first 90 days
Annual fee
$0
Intro APR
0% introductory APR for 12 months on balance transfers made in the first 60 days after account opening.*
Regular APR
17.99% variable on purchases; 17.99% non-variable on balance transfers
Balance transfer fee
3%
Foreign transaction fee
None
Credit needed
Good/Excellent
Terms apply.
Pros
- High 5X points on gas at the pump and 3X on supermarket purchases
- No bonus category activations
- Good special financing offer on balance transfers
Cons
- 3% balance transfer fee
*0% introductory APR for 12 months on balance transfers made in the first 60 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%. 3% balance transfer fee per transaction. Subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.
The PenFed Platinum Rewards Visa Signature® Card currently offers the highest rewards rate at gas stations, with 5X points per dollar spent on gas purchases at the pump. If you want to maximize rewards while transporting your little one, this card can earn the average American $111 annually, based on CNBC Select calculations.
This card has no annual fee, so you can really save on the road. PenFed is a credit union, so membership is required to open the PenFed Platinum Rewards Visa Signature® Card.
For the frequent Target run
Target Circle™ Card
Rewards
5% discount at checkout on most purchases in-store and at Target.com
Welcome bonus
Save $50 on a future qualifying purchase of $50 or more when approved for a Target Circle™ Credit or Debit Card.
Annual fee
$0
Intro APR
None
Regular APR
28.95% variable
Balance transfer fee
N/A
Foreign transaction fee
N/A
See rates and fees, terms apply.
Pros
- No annual fee
- Instant 5% discount at checkout
- Free two-day shipping on most items
- Extra 30 days for returns
Cons
- High variable APR
- Small intro bonus offer
If you're a parent who likes to do all of your general shopping in one place — groceries, clothing and everything in-between — a Target credit card may be your next best move.
The Target Circle Card™ is a store card that offers members a 5% discount at checkout on most purchases in-store and at Target.com. This is a great way to save instantly on your Target runs. You don't accrue points like other rewards and cash-back credit cards, but you also don't have to jump through hoops to redeem them.
The card also has no annual fee and offers a bunch of additional perks, such as free two-day shipping on most items with no minimum purchase and an additional 30 days for returns. Target Circle Card™ holders can also benefit from 10% off a purchase every account anniversary year and exclusives, such as special items, gifts and offers throughout the year.
Though we recommend the Target credit card because of its instant discount at checkout, both in-store and online, it is worth mentioning its counterpart big retailer, Walmart. Walmart has two credit cards: the co-branded Capital One Walmart Rewards® Mastercard®* and the private-label Walmart Rewards™ Card. Both Walmart cards come with no annual fee, but they earn a lower 2% cash back on Walmart® purchases in-store. And if you don't want to deal with the hassle of cashing in your points when it comes to redeeming rewards, Target is again the best choice.
For squeezing in a workout
- Rewarding and versatile quarterly bonus categories
- Generous intro-APR offer
- Quarterly limits on the card's top bonus spending categories
- No statement credit offers or other ongoing benefits outside of the cash rewards
Whether it entails enrolling in a gym membership or using fitness equipment in the comfort of your own home, getting exercise is a good outlet for any new parent. With the U.S. Bank Cash+® Visa Signature® Card, you can earn up to 5% cash back at gyms and fitness centers. This was the only card CNBC Select could find that offers bonus rewards, more than 2%, on eligible gyms. Gyms and fitness clubs are considered one category, and popular merchants include SoulCycle, LA Fitness and Equinox. Check out the full list of eligible gyms and fitness centers.
Cardholders can also benefit from 5% cash back on two bonus categories each quarter, including home utilities and department stores (which pairs nicely with making your home baby-friendly). You can also enjoy no interest on balance transfers for 15 billing cycles (after 18.99% - 29.24% variable APR), so if you need to pay off high interest debt, this may be the card for you.
For filling up your Amazon cart
The Prime Visa is only available to Amazon Prime members ($139 for an annual membership and $14.99 for a monthly membership) but is very rewarding for Amazon purchases.
- High rate of return at Amazon and Whole Foods
- Easy-to-earn welcome bonus
- Requires an Amazon Prime membership
- If you choose the promo APR you won't earn rewards on those purchases
Rewards
- Earn unlimited 5% back at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel purchases with an eligible Prime membership
- Unlimited 2% back at gas stations, restaurants, and on local transit and commuting (including rideshare)
- 10% back or more on a rotating selection of items and categories on Amazon.com with an eligible Prime membership
- Unlimited 1% back on all other purchases
Balance transfer fee
Either $5 or 4% of the amount of each transfer, whichever is greater
If you see yourself ordering all the baby basics online, you should consider getting an Amazon credit card. Although the Prime Visa, offered through Chase, requires users to have an eligible Amazon Prime membership ($139 annually, or $14.99 a month), the company's branded credit card offers the highest rewards return: a robust 5% cash back at Amazon.com, Amazon Fresh, and Whole Foods Market. Amazon Prime membership gives you access to a number of perks, including free two-day shipping, access to Prime Video and exclusive discounts at Whole Foods (that grocery list is looking less daunting).
When you sign up for the card, new cardholders receive a $150 Amazon Gift Card instantly upon approval exclusively for Prime members This welcome bonus could be a great way to help fund a new nursery in your home, or gift your partner something special for being a new parent.
For kickstarting your kid's college fund
Fidelity® Rewards Visa Signature® Card
Rewards
2% cash back on every eligible net purchase (when deposited into an eligible Fidelity account)
Welcome bonus
None
Annual fee
$0
Intro APR
None
Regular APR
16.49% to 26.49% based on your creditworthiness
Balance transfer fee
Either 5% of the amount of each transfer or $5 minimum, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent/Good
Terms apply.
Pros
- Unlimited 2% cash back on all purchases when deposited into an eligible Fidelity account
- No annual fee
- Global Entry or TSA PreCheck application fee credit
Cons
- No welcome bonus
- High credit score required
It's never too early to start saving for your child's education. 529 college savings credit cards are your best bet when planning for future college costs. These credit cards automatically deposit cash-back rewards from all your purchases into a 529 plan that you can open for your child. A 529 plan is a specialized savings account where the money is used to pay for the beneficiary's college expenses and K-12 tuition, tax-free.
A popular 529 card is the Fidelity® Rewards Visa Signature® Card that offers 2% cash back on purchases, putting money directly into your kid's college savings without you having to think about it. We recommend the Fidelity® card because of its higher rewards, but as a second option there is the Upromise® Mastercard®, which offers 1.25% cash back.
While 529 credit cards can be helpful in encouraging you to save money for your child's college education, we don't recommend relying on these alone to fund it.
Learn more: How to protect your child from identity theft
For rates and fees for the Blue Cash Preferred Card, click here
* Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
*Information about the Target Circle™ Card, Capital One Walmart Rewards® Mastercard®, Walmart Rewards™ Card, Fidelity® Rewards Visa Signature® Card, U.S. Bank Cash+® Visa Signature® Card and Upromise® Mastercard® has been collected independently by CNBC and has not been reviewed or provided by the issuer of the cards prior to publication.
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