The Best Low Interest Credit Cards in Canada

Bassel Abdel-Qader
by Bassel Abdel-Qader April 21, 2016 / No Comments

Low interest rate credit cards are a great option for those who tend to carry an outstanding balance on their statement. Unlike balance transfer credit cards, which have a temporary promotional period during which users will be charged a low interest rate on their transferred debt, low interest credit cards charge a low interest rate on everything (purchases and cash advances included) and not just for a limited period of time.

It should be noted that the low rate offered during the promotional period of balance transfer cards is different from the low rate offered by low interest cards. Balance transfer cards are sometimes referred to as 0% interest credit cards because the interest rate can indeed drop that low during the promotional period. Low interest cards consistently charge a rate of 10% to 15% (usually), which is much lower than the typical 20% interest rate charged by rewards credit cards.

These two groups of cards, however, are not mutually exclusive. It’s possible to find a credit card that is both a balance transfer card and a low interest card. Here’s a look at three of our favourite low interest credit cards.

Scotiabank Value Visa

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  • $29 annual fee
  • 0.99% introductory interest rate on balance transfers and cash advances for the first six months (offer valid until May 31, 2016)
  • Interest rate of 11.99% on purchases, balance transfers, and cash advances

The Scotiabank Value Visa is a textbook low interest rate credit card. The reason it’s so appealing to those looking for a card of this type is the introductory interest rate of 0.99% on balance transfers and cash advances for the first six months. After this, users can enjoy an interest rate of 11.99% on purchases, cash advances, and balance transfers, all for an annual fee of just $29.

BMO Preferred Rate MasterCard

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  • No annual fee card with 17.5% interest rate
  • $20 annual fee card with 11.9% interest rate
  • Free protection from both theft and fraudulent use of your card

The BMO Preferred Rate MasterCard is great for its flexibility as a low interest card. It’s a no-fee credit card that charges 17.5% on purchases, cash advances, and balance transfers. This rate is already lower than most rewards credit cards, which charge around 20% in interest. However, for $20 a year, users have the option of reducing the interest rate to 11.9%.

RBC Visa Classic Low Rate Option

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  • $20 annual fee
  • 11.99% interest rate

Comparable to the two previous cards, the Visa Classic Low Rate Option offered by RBC has a low interest rate of 11.99% on purchases, cash advances, and balance transfers, and charges an annual fee of $20. While the other two cards have a unique added benefit, be it the introductory rate of the Scotiabank Value Visa, or BMO’s option with a lower rate, this card, unfortunately, does not have such a characteristic.

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