Are you in the market for a low interest rate credit card so you can save on interest fees? The RBC Visa Classic Low Rate Option credit card may work for you with its 12.99% interest rate.
Low-interest credit cards come in handy if you carry a balance from month to month.
With average purchase interest rates for regular credit cards around 20% or higher, a low interest rate card can result in significant fee savings.
This review of the RBC Visa Classic Low Rate Option card covers its feature, benefits, downsides, and alternatives.
RBC Visa Classic Low Rate Option Benefits
RBC Visa Classic Low Rate Option
- Annual fee: $20
- Interest rates: 12.99% for purchases and cash advances
- Welcome offer: None
- Minimum income required: N/A
The RBC Visa Classic Low Rate Option serves one main purpose – you pay a low interest rate on your balance.
Compared to paying 19.99%, this card charges 12.99% for both purchases and cash advances.
On the rewards side of things, this RBC credit card does not offer a lot of options, and you don’t earn cashback rewards when you pay for everyday purchases.
That said, cardholders enjoy access to purchase security as well as an extended warranty that increases the manufacturer’s warranty by up to one extra year.
If you buy your gas at Petro-Canada, you can link your card and save 3 cents per litre. You also earn 20% more Petro-Points.
Downsides of the Card
If you want a credit card that earns worthwhile cash back rewards, this card is not suited for that purpose.
Instead, you can check out these cash back credit cards.
There are credit cards in Canada with lower interest rates, and some also offer balance transfers at even better rates (howbeit for a limited period of time).
Low Interest Rate Credit Cards in Canada
The three credit cards below are worth looking at to save on credit card interest fees:
1. Scotia Value Visa Card
- Annual fee: $29
- Interest rates: 12.99% for purchases, balance transfers, and cash advances
- Welcome offer: 0.00% promotional balance transfer rate for the first 6 months
- Minimum income required: $12,000
The Scotia Value Visa is Scotiabank’s low-interest rate credit card.
If you want to consolidate your credit card debt and save on interest fees, this card offers a remarkably low 0.99% balance transfer rate for the first 6 months.
Cardholders can save up to 25% on car rentals at participating AVIS and Budget locations when they pay with their card.
Learn more about this card in my detailed Scotiabank Value Visa review.
2. National Bank Syncro Mastercard
- Annual fee: $35
- Interest rate for purchases: 4%+ prime rate (or a minimum of 8.90%)
- Interest rate for cash advances: 8%+ prime rate (or a minimum of 12.90%)
- Welcome offer: None
- Minimum income required: N/A
National Bank’s Syncro Mastercard offers competitive low interest rates on purchases, cash advances, and balance transfers.
While it doesn’t earn cash back, cardholders get purchase protection for up to 90 days, and an extended warranty for up to one extra year.
3. MBNA True Line Gold Mastercard
- Annual fee: $39
- Interest rates: 8.99% for purchases and 24.99% for cash advances
- Welcome offer: None
- Minimum income required: N/A
This card has a low and competitive 8.99% standard interest rate on purchases. It also offers purchase protection for up to 90 days and extended warranty for one additional year.
When you rent a car at participating Avis Rent A Car or Budget Rent A Car locations and pay with your card, you save up to 10% off the base rates.
Learn more about the card in this MBNA True Line Gold Mastercard review.
Conclusion
Low-interest rate credit cards cut your interest fees when you carry a balance from month to month. If what you are looking for is a no-annual-fee cashback credit card that also offers low-rate balance transfers, check out the Tangerine Money-Back Card.
You earn up to 2% cash back on purchases, and new cardholders can take advantage of the 6-month 1.95% balance transfer rate.
Tangerine Money-Back Credit Card
Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases.
Welcome offer: Get an extra 10% cash back on up to $1,000 in spending in the first 2 months ($100 value); 1.95% balance transfer rate for 6 months.
Interest rates: 19.95% for purchases, balance transfers, and cash advances.
Annual fee: $0
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