: Paying federal or state income taxes with a card results in a processing fee between 1.87% and 2.25%. The IRS offers installment plans with interest rates significantly lower than standard credit card APRs.

Many essential monthly bills carry convenience fees when paid via credit card that often outweigh any potential rewards points.

: Most lenders do not accept direct credit card payments. Third-party services that facilitate these often charge a 2.5% to 3% fee, which is typically higher than the cash-back or points you would earn.