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%.
Low-Interest Rate Credit Cards in Canada
If you are struggling to pay off your credit card debt, a low-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%
- Balance transfer offer: 0% for 6 months
- Annual fee: $39
- Income requirement: None
The MBNA True Line Gold Mastercard is a one-of-a-kind card in that it offers a 0% introductory balance transfer rate for 6 months.
Add in its 8.99% regular interest rate on purchases and balance transfers (after the promotional period ends) and you have yourself a winner!
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%.
The MBNA True Line Gold’s low purchase and regular balance transfer APR means you can continue to save on interest fees even after the 6-month 0% promotion ends.
Apply for the MBNA True Line Gold Mastercard.
2. Scotiabank Value Visa
- 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 my complete Scotiabank Value Visa Card review.
Apply for the Scotiabank Value Visa.
3. American Express Essential Credit Card
- Purchase APR: 12.99%
- Balance transfer offer: 1.99% for 6 months
- Annual fee: $0
- Income requirement: $15,000
The American Express Essential Credit Card offers one of the best low-interest rates you will find in Canada. In addition to this, it also offers new cardholders a 1.99% balance transfer rate for 6 months.
You can transfer up to a maximum of $7,500 and pay no balance transfer fees.
Other perks of this card are:
- Purchase protection and extended warranty
- Travel accident insurance
A 23.99% to 26.99% purchase APR and/or cash advance rate applies if you miss 2-3 separate payments in any 12 month period.
Apply for the American Express Essential Card.
4. MBNA True Line Mastercard
- Purchase APR: 12.99%
- Balance transfer offer: 0% for 10 months
- Annual fee: $0
- Income requirement: None
The MBNA True Line Mastercard offers a 0% introductory interest rate on balance transfers for 10 months. After the promotional period ends, you pay 12.99%.
Note that a 3% balance transfer fee applies ($7.50 minimum fee).
The standard purchase APR for this card is also 12.99%, while it attracts a hefty 24.99% cash advance interest rate.
Apply for the MBNA True Line Card.
5. Desjardins Modulo Visa
- Purchase APR: 10.90%
- Balance transfer offer: None
- Annual fee: $50
- Income requirement: None
The Desjardins Modulo Visa card offers an interesting mix of low-interest rates and rewards.
To start, it’s fixed 10.90% APR on all purchases and cash advances is competitive. Additionally, it offers cardholders:
- 1% BONUSDOLLARS on all purchases
- Travel insurance coverage up to 3 days
- Mobile device insurance
- Purchase protection and extended warranty
Apply for the Desjardins Modulo Visa.
6. 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 ton in 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 my complete BMO Preferred Rate Mastercard review.
Apply for the BMO Preferred Rate Mastercard.
7. 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 3.95%, the purchase and cash advance APR on this card range from 8.45% to 16.70%.
The 8.45% 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
Apply for the TD Emerald Flex Rate Visa.
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.
