Rewards credit cards save you money by returning a percentage of what you spend in the form of cash, points or miles. However, there are a few unfortunate mistakes that people make with rewards credit cards that prevent them from maximizing the value of their cards.

1. Choosing the Wrong Rewards Credit Card

There are three major types of credit card rewards: cash back, points and miles. Cash back cards are usually targeted more toward everyday purchases, while points and miles cards tend to be more focused on travel (though there are exceptions). Figuring out what types of purchases you spend the most money on can help you pick the best type of card. You may even want different rewards cards for different purposes.

Using a balance transfer credit card with no balance transfer fee is a great way to save money while paying off debt. Thinking you can’t go wrong with a no-fee balance transfer could be a costly assumption, however. There are a few common mistakes you should familiarize yourself with and make sure to avoid if you want to get the most out of a no-balance-transfer-fee credit card.

1. Focusing on Balance Transfer Fees Instead of the Total Cost

Signing up for a balance transfer credit card with no transfer fee may sound foolproof, but keep in mind that “no transfer fee” does not always mean you get an introductory 0% APR on your transferred balance. If you don’t get a low intro APR, interest charges could end up costing you a lot more than a transfer fee over the course of your payoff period.

A travel credit card is essential for people who take trips at least a few times per year, whether domestically or internationally. Unfortunately, there are several avoidable mistakes that people often make with travel credit cards, and steering clear of these pitfalls can save you a lot of money.

1. Assuming Cards With Annual Fees Are Worse

Travel credit cards can have no annual fees, some of the highest annual fees on the market, or something in between. Some people think that if a card doesn’t charge an annual fee, it’s a better choice, but that’s not always true. Paying an annual fee is fine – as long as you can more than break even with the value of the rewards and benefits you receive from the card. Big initial bonuses can often pay for the card’s annual fee for a few years, for example.

What Is CVV2?

A CVV2 code is a three-or-four digit number printed on the back of credit cards, debit cards and prepaid cards (or the front of Amex cards) that you have to provide for security purposes when making a purchase online or over the phone. This prevents people from making so-called “card-not-present transactions” if they aren’t actually in possession of the card being charged. That’s why folks often refer to CVV2 numbers as credit card security codes. They help prevent unauthorized use of your account.

Discover it Student Cash Back Review Summary

The Discover it® Student Cash Back is a good option for students who want a $0 annual fee credit card with bonus cash back rewards. Discover it® Student Cash Back offers 1 - 5% cash back on purchases, depending on the category, and Discover will double rewards earnings from the first year.

Credit One Visa Credit Card Review Summary

The Credit One Bank® Platinum Visa® for Rebuilding Credit is a pretty good credit card for people with bad credit who don't want to place a deposit on a secured card. The Credit One Platinum Visa can be worthwhile because it offers a $300 credit limit, rewards, and the potential for credit-limit increases.

The Milestone Credit Card is a popular credit card option for people with bad credit. However, there are a few mistakes that people make when using the Milestone Credit Card that cost them money and prevent them from getting the most out of the card.

These tips are not provided, commissioned or endorsed by any issuer. Opinions are our own. Genesis Financial Solutions is a WalletHub partner.

The best credit card deals can provide cardholders with big rewards bonuses, long 0% APR periods and more. Unfortunately, there are several big mistakes that many people make that prevent them from taking full advantage of the best credit card deals. Let’s go through those errors one by one, so you’ll know how to avoid them.

1. Assuming Deals Are the Best Cards

Just because a credit card is labeled as a “deal” doesn’t necessarily mean it’s the best card for you. You should compare that card to other offers to see which will save you the most money.

Peerform Review Summary

Peerform offers personal loans through peer-to-peer lending, which means they connect borrowers with investors who are willing to extend them loans. Borrowers have to meet a minimum set of requirements, which include a FICO score of 600+, a Social Security number and an active bank account, in order to qualify.

Mercury has a pretty good extended car warranty plan based on the amount of coverage offered, company reviews by consumer watchdog groups, and additional benefits. There are four Mercury extended warranty plans to choose from, all of which provide coverage for basic systems like the engine, transmission, and drive axle. Their highest tier also covers fuel system and audio center.

Mercury refers to their extended warranty as a Mechanical Breakdown, and it is available for vehicles up to 7 years with up to 100,000 miles. Mercury does not disclose information about how much their plans cost and pricing is dependent on your vehicle, and which plan you choose.