If you regularly carry a credit card balance that accrues interest charges, a low interest credit card can save you hundreds to thousands of dollars in interest fees.
The standard purchase rate on most credit cards is around 19.99%. On some credit cards, the rates can even higher at up to 25%!
Check out this list of the best no-fee and fee-paying low-interest rate credit cards in Canada for options that charge interest rates of 8.99% to around 12.99%.
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Low Interest Rate Credit Cards in Canada
If you are struggling to pay off your credit card debt, a low-interest rate balance transfer credit card can be useful for taking off the pressure for 6-12 months.
During this time, try paying for purchases with cash and work at paying off your balance quickly. If you must make a credit card purchase, use a low-interest rate credit card that cuts your purchase APR by up to 50% or more.
Some low-interest credit cards also offer a promotional balance transfer which makes for a perfect combination. However, note that some of these credit cards jack up your rates if you miss any payments.
1. MBNA True Line Gold Mastercard
- Purchase APR: 8.99%
- Annual fee: $39
- Income requirement: None
The MBNA True Line Gold Mastercard offers an 8.99% regular interest rate on purchases and balance transfers. Its low purchase and balance transfer APR mean you save on interest fees even if you carry a balance.
Note that a 3% balance transfer fee (minimum $7.50 fee) applies and if you withdraw cash, the rate for cash advances is 24.99%.
Learn more about the card in this MBNA True Line Gold Mastercard review.
2. Scotiabank Value Visa Card
- Purchase APR: 12.99%
- Balance transfer offer: 0.99% for 6 months
- Annual fee: $29
- Income requirement: $12,000
The Scotiabank Value Visa is a top contender in the line-up of low-interest credit cards in Canada.
It offers a regular 12.99% APR on purchases, cash advances, and balance transfers. New cardholders also get a 6-month introductory low balance transfer rate of 0.99% and there are no balance transfer fees.
Read this Scotiabank Value Visa Card review for more details about the card.
3. MBNA True Line Mastercard
- Purchase APR: 12.99%
- Annual fee: $0
- Income requirement: None
With the MBNA True Line Mastercard, you pay 12.99% on purchases and balance transfers. Note that a 3% fee applies to balance transfers ($7.50 minimum fee).
On cash advances, there’s a hefty 24.99% interest rate. Read this MBNA True Line Mastercard review for more information.
4. BMO Preferred Rate Mastercard
- Purchase APR: 12.99%
- Balance transfer offer: 3.99% for 9 months
- Annual fee: $20
- Income requirement: $15,000
If you are struggling with high-interest rates on your current credit card, the BMO Preferred Rate Mastercard can save you a tonne in interest fees.
You enjoy a standard 12.99% APR on purchases and cash advances, as well as a 3.99% promotional balance transfer rate for 9 months. Note that a 1% transfer fee applies.
Other perks offered by this card are:
- Purchase protection for up to 90 days
- Extended warranty for up to a maximum of one extra year
- Discount on admission tickets to Cirque du Soleil shows in Canada
Read this BMO Preferred Rate Mastercard review.
5. TD Emerald Flex Rate Visa
- Purchase APR: 4.50% to 12.75% + TD Prime
- Balance transfer offer: N/A
- Annual fee: $25
- Income requirement: None
If you have a very good credit score, you could score a competitively low-interest rate with the TD Emerald Flex Rate Visa card. Based on TD’s current prime rate of 2.45%, the purchase and cash advance APR on this card range from 6.95% to 15.20%.
The 6.95% APR rate is the lowest purchase/cash advance rate available on this list. However, note that since the TD Prime Rate can vary, the interest rate you pay over time can go up or down.
Additional benefits of the card are:
- Purchase security and extended warranty
- Get up to a 10% discount when you rent a vehicle at participating Avis Rent a Car and Budget Rent A Car locations
Related Posts:
- Best Credit Cards in Canada
- Best Credit Cards for Car Rental Insurance
- No-Foreign Transaction Fee Credit Cards
- Best U.S. Dollar Credit Cards for Canadians
Conclusion
A low-interest credit card can help you shave off unnecessary fees while you pay off your credit card balance.
Read the fine prints that accompany these cards on the issuer’s website by clicking on the “Apply” links above. Some of the cards jack up their interest rates when you miss a number of payments within a 12-month period.
Overall, aim to pay off your balance within the grace period, so you can avoid interest charges altogether.
