If you plan to pay off the balance every month, thus never accruing interest, then go for the cash back card. In that situation, the interest rate is irrelevant.
However, if you regularly carry a balance, a low interest rate might be the better option.
Under no circumstances should you ever increase your spending simply because of a "rewards" program that a card might offer. It's similar to the thinking that people will go out and buy something on sale because of the "savings" when they had no intention of buying it in the first place - in other words, they have saved nothing because they went out and spent money that they weren't originally intending to spend.
If you spend a lot (or extra) to get 1 or 2% (or whatever amount) back, but then you get hit with 10% interest annually because you can't pay off the balance every month, then that can eat up some, or all, of your cash back rewards.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines
. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.