Cash Back Credit Cards to Skip in 2023

Cash back credit cards can be an excellent way to earn rewards on everyday purchases, but not all cards are created equal. In fact, some cash back credit cards may not be worth your time or money. In this article, we’ll discuss some cash back credit cards to skip in 2023.

Store-Branded Credit Cards

Many retailers offer store-branded credit cards that offer cash back rewards on purchases made at their stores. While these cards may seem like a great deal at first glance, they often come with high-interest rates and limited rewards options.

Additionally, store-branded credit cards may only be used at the specific retailer, which can limit your options for earning rewards. If you’re looking for a more versatile cash back credit card, it’s best to skip store-branded cards.

Cards with High Redemption Thresholds

Some cash back credit cards require a minimum amount of cash back before it can be redeemed. For example, a card may require $25 in cash back before it can be redeemed, which can take some time to accumulate.

While having a minimum redemption threshold isn’t necessarily a deal-breaker, it can be frustrating if you’re not able to redeem your rewards when you want to. If you’re someone who likes to redeem your rewards frequently, it’s best to skip cards with high redemption thresholds.

Cards with Limited Cash Back Categories

Many cash back credit cards offer higher rewards rates in specific categories, such as groceries, gas, or dining. However, some cards may only offer cash back rewards in limited categories, which can be a drawback if you spend most of your money outside of those categories.

Before signing up for a cash back credit card, make sure to review the rewards categories and consider your spending habits. If the card doesn’t offer rewards in categories that you typically spend money in, it may not be worth it to sign up.

Cards with Annual Fees

Annual fees are a common drawback of many cash back credit cards. While some high annual fee cards may be worth it for the rewards and benefits offered, many are not.

When considering a cash back credit card with an annual fee, make sure to weigh the cost of the fee against the rewards earned. If the rewards earned do not outweigh the annual fee, it may not be worth it to sign up for the card.

Cards with Low Cash Back Rates

Another reason to skip a cash back credit card is if the cash back rates are too low. While some cards may offer 1% cash back on all purchases, many cards offer higher rates in specific categories.

If the cash back rates are too low, it may not be worth it to use the card for everyday purchases. Additionally, make sure to consider any spending limits or restrictions on the cash back rewards.

In conclusion, while cash back credit cards can be a great way to earn rewards on everyday purchases, not all cards are worth your time or money. Store-branded credit cards, cards with high redemption thresholds, limited cash back categories, annual fees, and low cash back rates are all reasons to skip a cash back credit card. Before signing up for any card, make sure to review the terms and conditions carefully and consider the rewards earned versus the cost of the card.