Hi all, we're starting daycare for our little one next week and we have an option to pay with credit card (for a 2.5% convenience fee). Wanted to see what cards people were using these day if they are paying with CC. It appears most of the unlimited cashback no fee cards cap out at 2%, but wondering if anyone has a volume kicker if you spend a certain amount. The no fee ones I'm seeing are Wells Fargo Active cash and Citi Double Cash card. haven't explored annual fee cards yet. Thanks!
Best Credit card to Use for Daycare expenses? ( estimated 30k in annual spend; CC convenience fee is 2.5%)
byu/eswtang inCreditCards
Posted by eswtang
19 Comments
Robinhood gold card is 3%
Natural churning engine, at least that’s what I use it for. ~$1k per week.
Most of the time, you’re not going to earn more than 2.5% to break even. Smart move is usually to avoid credit cards for these types of expenses. Robinhood Gold Card is NOT widely available due to a very long waitlist. You could try, but most don’t even get to apply.
BofA PRE.
2.62x, each point worth 1.18 on flights.
The logic is, the 2.5% is roughly what they are paying the credit card company for the transaction – so that’s about the most a card company can afford to offer you in turn.
If you travel, a 2X catchall like Amex BBP or Cap1 Venture X will give you points which are probably worth more to you than the 2.5% fee. A Robinhood Gold will give 3% or a USBank Smartly will give up to 4%, but those are both loss-leader offers to get your custom for their other services.
CFU gets 1.5 points. So far I’ve done 2 Hyatt redemptions at 1.96CPP and 3.30CPP I’d roll with that of you don’t want to do SUB
A bit off topic, I am sure everyone has already offered you decent choices for credit cards, but I would also look into a Dependent Care FSA account if your employer offers it, that will save you some money on taxes.
Has anyone tried US Bank Smartly if you have the good nerf?
Discover it Miles. 3x cash bac. Only for the first year. After that 1.5x. Without any limits.
Can you use a debit card that earns 1 percent back and doesn’t get the 2.5% fee? I plan on getting the discover debit card for cases like this
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RIP Mesa, was perfect for this sort of thing.
I use RH gold
open a few new cards with p2.
Bofa PR woth Plat Honors to get 2.625%
The VenMo credit card offers 3% back on your top spending category with no fee.
Your better bet would be to use these expenses to earn sign up bonuses on 2-4 new cards a year (alternate personal and biz cards if you can). Otherwise, use debit or some other method that doesn’t incur the 2.5% fee.
I have credit karma and it does not show up
Some others have hinted at it, but this might be a good opportunity to start credit card churning- opening a new credit card every 6 months or so, just for the sign up bonus. My usual return when I do this is 10%+. Lots of resources for this are in r/churning if you’re interested.