Lower APR vs. Cash Rewards

[CaptainGreenThumb]

Hey everyone, I have posted this question towards the end of another thread so I apologize to those who have read this before.

I am fairly new to credit so I don't neccesarily know my spending habits, etc.

But anyways, I am thinking about my emergency/backup card.

I recently applied for a card through NFCU.

I currently have the Visa Platinum: 7.99% APR with no rewards. I could product change to the Visa Signature Cash Rewards: 10.99% with 1% cash back up to $10,000 spent and then 1.5% after that.

Could you wise people please help me decide which card would be best? I do not see this card being my primary card as my other cards have better rewards structures.

When would the cash rewards outweigh the 3% lower APR? and Vice Versa?

Please do not respond saying "If you pay your card off every month then of course the rewards card would be better." I am going to have this as an emergency card, which I assume I would not be paying off at the end of the month.

Thanks Again Fico Community.

[user5387]

I'd probably keep the 7.99% card, as an integral part of a complete CC lineup.

It's great to have a low rate for emergencies, and have a CC with no fees for BTs and cash advances, if the need arises.

[titanofold]

I would rather have the low interest rate than the rewards for large, unplanned purchases. The rewards are great when you can pay off the CC before the interest rate swallows the reward value. So, you're looking at usually 3 or 4 months at most before the rewards become a wash and you end up paying a lot in interest. Granted, there's not much between 8% and 11%, but it's enough to cancel out the benefits over the long term.

[_jb_]

I agree that you should keep the Platinum. In fact, I am about to PC my NFCU cashRewards to a Platinum for the exact same reason. I don't use my NFCU card for anything anyways, as other cards offer better rewards for my spending habits.

[plasectomy]

I would keep the Platinum since the cashback bonus would be negated by the increased APR you may be subject to. In an emergency, 1-1.5% cashback would likely be the last thing on my mind.

[Uppingmyscore]

Agree-keep your existing card!!!

[Darrell82]

I agree with others on this as well. I would personally keep the low interest card as well. 

[BQQKWORM]

Interesting! I had this same scenario come up last week when I app'd with NFCU last week. I opted for the cash rewards but when I found out the apr was higher I was on the fence but the rep indicated that I could do a product change at any time

[CaptainGreenThumb]

Thank you everyone for your input. The lowest APR possible does make sense for emergencies... but there will always be a little devil on my shoulder when I make purchases to keep the card active saying. "You could be getting cash back on that." haha