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When Should You Choose a Card With a Lower APR?
When Is a Rewards Card a Better Fit?
Here's a Practical Example
You Don't Have to Choose Just One
Choose Your Spero Credit Card
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Nowadays, there are so many credit card options that choosing the right one can be more than a little confusing. Should you choose a low APR option to reduce the amount of interest you pay? Or would a rewards-focused card make more sense?
Finding the right credit card comes down to how you’ll use it and what you want to accomplish.
When Should You Choose a Card With a Lower APR?
APR stands for Annual Percentage Rate. It’s the number that determines how much interest you’ll pay on the money you borrow.
A credit card with a lower APR may be ideal if you tend to carry a balance from month to month because it will reduce borrowing costs over time.
Thanks to the lower interest rate, these cards can serve as a good safety net for unexpected expenses or for financing a larger purchase (like a home appliance or car repair) over a few months.
Worth Knowing: Some cards will advertise a 0% introductory APR as a promotion to get you to open an account. This can be a helpful perk if you use it wisely, but make sure you know when the intro period ends, because the standard APR will likely apply to your balance when time’s up.
When Is a Rewards Card a Better Fit?
If you usually pay your credit card balance in full every month, a rewards card can turn everyday spending into cash back, points, or miles. Just make sure the rewards you’re earning make sense for your lifestyle.
If you’re a frequent traveler, a travel rewards card makes sense. But if you rarely take trips, all the miles in the world won’t do you much good. If you’d rather get cash back for your everyday expenses, look for a cash back card that pays you a percentage of every purchase you make.
It’s all about finding the rewards program you can really use, rather than one that just sounds good on paper.
Worth Knowing: A rewards card is only worth it if the rewards outweigh the costs. Check for any annual fees and understand how much your points or miles are actually worth before opening an account.
Here’s a Practical Example
Jane and John both want to get a credit card. They’re each trying to choose between two options: Card A and Card B.
Card A has a low APR (14%) but doesn’t offer any rewards or cash back.
Card B has a higher APR (25%) but offers 2% cash back on all purchases.
John knows he tends to carry a balance for a few months. If he chose Card B, there’s a good chance his interest payments would be more than any cash rewards he’d earn. So he went with Card A to minimize the amount of interest he will pay over time.
Jane uses her credit card for everyday purchases and pays off her balance each month. Since she doesn’t carry a balance, the interest rate is less of a concern. Instead, she opts for Card B to maximize her cash back rewards.
Worth Knowing: Rewards cards may earn around 1–3% back on purchases, but carrying a balance at a much higher APR can quickly outweigh those rewards. For example, a $500 balance carried for six months at 22% APR can cost substantially more in interest than you would earn in cash back.
You Don't Have To Choose Just One
Getting a credit card isn’t always an either/or decision. Some people find it helpful to use two cards for different purposes: a low-rate card for larger purchases or emergencies, and a rewards card for everyday spending that they pay off each month.
There is no single "best" card for everyone; it depends entirely on how you plan to use it.
Choose Your Spero Credit Card
As a Spero member, you have access to rewards and low-APR cards. Check them out* and find the right fit for you. And if you have questions, send us a message or stop by your nearest branch.
This material is for educational purposes only and is not intended to provide specific advice or recommendations for any individual.
*Subject to credit approval. See full terms at https://spero.financial/credit-card/.
