Cannot spend balance.

If you're in the USA did you remember tax?

There can actually be several reasons for needing a card. One is that you need to have more that your $5. The other is "Some purchases might require that you have a credit card on file, even if you use your Apple ID balance to make the purchase." - from: What you can buy with your Apple ID balance --> https://support.apple.com/HT211187

For a variety of reasons Apple will almost always require a functional payment method such as a credit or debit card be present when downloading anything from the iTunes or App Stores that isn't totally free, even if the item will be paid for with Apple Account balance. The only solution to satisfy this requirement is to add a valid payment method.

This document explains how to 'Change, add, [review,] or remove Apple ID payment methods' on an Apple mobile device, a Mac, or a PC; click here --> https://support.apple.com/HT201266

Additional resources:

'Payment methods that you can use with your Apple ID' --> https://support.apple.com/HT202631

'If your payment method is declined in the App Store or iTunes Store' click here --> https://support.apple.com/HT203005

Create or use an Apple ID without a payment method - https://support.apple.com/HT204034