Compare business credit cards for in-home childcare businesses
Tiffany Verbeck
Content Manager
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All kinds of small business owners benefit from using credit cards to increase cash flow, and in-home child care centers are no different. Child care providers can use small business credit cards to pay for daycare expenses and help their daycare business succeed.
Learn ways that a credit card can be an invaluable tool for your daycare business, how to choose the right one, and Nav’s top card picks with a variety of perks.
Common credit card uses for in-home childcare businesses
An in-home childcare business is unique because you run your small business from your home. That means you’ll need to buy your own large equipment like portable cribs, high chairs, and toys, as well as everyday items like diapers and wipes (depending on whether you provide these or not).
A credit card offers the ability to pay for large purchases up front while also possibly letting you earn rewards on eligible purchases. For a new business dealing with startup costs, business credit cards can be necessary for getting things up and running.
You can also use a credit card to pay for service providers you need for your business, like internet or cell phone. Additionally, if you need to complete a balance transfer to help pay off business debt, you may be able to qualify for a balance transfer card or a card with a 0% APR for an introductory period.
How to choose a business credit card for your childcare business
Business credit card providers can offer in-home childcare business owners a variety of benefits, and the best credit cards for you depend on several factors.
1. Can you qualify?
When shopping for cards, first consider your credit score and creditworthiness. Some card issuers require you to have good to excellent personal credit to qualify while others are happy to give you a card if you have less-than-perfect credit.
2. How much does it cost?
One big consideration is the interest rates or variable APR of the card to make sure you aren’t overpaying to borrow. Credit card lenders typically look at your credit score to determine your interest rate.
3. What kind of card is best?
Then you’ll need to decide what type of credit card you want. You can usually choose between:
- Rewards credit cards. A rewards card is useful for earning rewards points, cash back, or travel rewards on either bonus categories or through a flat rewards rate that applies to every purchase. You can usually get cash back as a statement credit or gift cards. Think through what you already buy before picking so you can get rewards back on things you’re already purchasing for your business.
- Balance transfer cards. These balance transfer cards are designed to allow you to transfer debt from another card with a high interest rate to this card with a lower interest rate (often 0% for a period of time). It can help to consolidate your debt, but you also usually have to pay a percentage as a balance transfer fee.
- 0% intro APR cards. With these welcome offer cards, you’ll pay no interest for a period of time on enrollment. These can be especially useful for paying for startup costs, and some cardholders use them for balance transfers.
- Credit building cards. Some credit card providers will accept applicants with lower credit scores and using the card may help build credit. These are usually secured credit cards that require a deposit to open.
Also, consider whether it’s important for you to have a Visa, Mastercard, or American Express, for example.
Cardholders can often get several perks with the same card. That’s why it’s important to do a thorough card review to find the best option for your business. Head to Nav to fill in your business details and see the top options instantly that you’re most likely to qualify for.
4. How much do you need to borrow?
A business credit card will only allow you to borrow up to your credit limit, which is set by the card provider and is usually determined by your credit score. If you need more business credit for a childcare business than a credit card can offer, you could also consider small business loans. Loans provide a lump sum that you’ll make a monthly payment on and can use to help your daycare business succeed.
The first step in getting business financing is building business credit. Learn how to establish business credit in this guide from Nav’s experts.
5. Other factors?
If you employ child care workers, check whether you can get free employee cards, as well. Also, you may not travel overseas for business using this card, but if you plan to, try to get a card without a foreign transaction fee. Terms apply for every card, so read the fine print before applying.
Business cards with no annual fee
There are many business credit cards that don’t charge an annual fee during the calendar year to use them — and many of them also earn rewards.
Ink Business Unlimited® Credit Card
This cash-back card is simple to use because you’ll pay a $0 annual fee and get a flat rewards rate: Earn unlimited 1.5% cash back on every purchase made for your business. Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.
All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Pros
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Cons
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
All information about the Ink Business Unlimited® Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav’s credit card page.
Business cards with cash back rewards
Here is a good rewards credit card you can use to help earn back on your everyday daycare business purchases.
Ink Business Preferred® Credit Card
If you plan to use your credit card for internet or phone, these rewards could help with those spending categories: Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases-with no limit to the amount you can earn. You’ll pay a $95 annual fee, but you can get bonus points on account opening: New Cardmember Offer! Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening.
All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Pros
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Cons
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
All information about the Ink Business Preferred® Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav’s credit card page.
Business credit cards for purchasing daycare equipment
You need a lot of baby gear and equipment to set up an in-home daycare center. Using a rewards card that gives you points or cash back can help offset the cost. Also, look for cards that give you an extended warranty on those items.
The American Express Blue Business Cash™ Card
You’ll pay a $0 annual fee with this AmEx card while earning rewards: Earn 2% cash back on all eligible purchases on the first $50,000 of purchases each calendar year, 1% thereafter. There’s also a welcome offer. Earn a $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months.
One of the highest cash back rates available for small business cards.
Pros
- Attractive intro financing offer
- High rates of cash back for business spending
- No annual fee.
Cons
- No rewards bonus for initial spending
- Foreign transaction fees.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
Costco Anywhere Visa® Business Card by Citi
This card could be great for an in-home daycare provider that uses Costco to stock up on necessary equipment and supplies.3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel. 2% cash back on all other purchases from Costco and Costco.com. 1% cash back on all other purchases.. The annual fee is $0.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
Overall business credit cards for daily childcare business expenses
Many cards offer rewards on retail and grocery purchases that you’ll likely need to make frequently to run your daycare business. Here are some of the best options.
Ink Business Cash® Credit Card
This card can give you rewards on many of your everyday purchases: Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn. You’ll pay a $0 annual fee and can get a great welcome offer: Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.
All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Pros
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Cons
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
All information about the Ink Business Cash® Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav’s credit card page.
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Tiffany Verbeck
Content Manager
Tiffany Verbeck is a Content Manager for Nav. She uses her 8 years of experience writing about business and financial topics to oversee the production of Nav’s longform content. She also co-hosts and manages Nav’s podcast, Main Street Makers, to bring small business owners together to share tips and tricks with a community of like-minded entrepreneurs.
Previously, she ran a freelance business for three years, so she understands the challenges of running a small business. Also, she worked in marketing for six years in a think tank in Washington, DC. Her work has appeared on sites like Business Insider, Bankrate, and Mission Lane.