Best Low Interest Credit Cards Canada 2020
- MBNA True Line Gold Mastercard (8.99% APR; $39 annual fee)
- MBNA True Line Mastercard (12.99% APR; $0 annual fee)
- BMO Preferred Rate Mastercard (12.99% APR; $20 annual fee)
- Scotiabank Value Visa (12.99% APR; $29 annual fee)
- National Bank Syncro Mastercard (Prime rate +4/min 8.9%; $35 annual fee)
If you need any help comparison shopping, read our frequently asked questions below:
What is a low interest credit card?
A low interest credit card is exactly what it sounds like: a regular credit card but with a lower interest rate (typically 5-10% versus 19.99%+). The card also offers a lower interest rate on balance transfers and cash advances, which may be important to you, if those are transactions you think you’ll make on occasion. Low interest credit cards also typically have low or no annual fees, making it an accessible card regardless of your income.
Should I get a low interest credit card?
If you can’t always pay off the full balance on your credit card or if you have credit card debt, a low interest credit card can save you a lot of money in unnecessary interest charges. Don’t get fooled by enticing credit card rewards because if you can’t pay off your monthly balances, those rewards will cost you. Credit card interest compounds and accumulates quickly, so the more you’re charged the longer it’ll take you to pay off the debt. By transferring your balance to a low interest credit card, or just using one right from the start, you can save both in interest costs and potentially in the full length of time it might take you to pay off your credit card debt.
When is the best time to use a low interest credit card?
We know that low interest credit cards are helpful when you are carrying a balance on your credit card, but they are also great for making everyday purchases or for emergency expenses. With a low interest credit card, you will pay less interest than you would with a regular credit card and you’ll have the security of using the card if you need to. While we don’t recommend getting cash advances, low interest credit cards do charge a lower fee compared to other cards. Many people also use their low interest credit cards to perform balance transfers, when they transfer some or all of their balances from one card to a new low interest credit card; this allows them to have only one monthly payment at a much lower interest rate.
What is the best low interest credit card?
You would think that choosing the best low interest credit card would be straightforward since all you’d be looking at is the interest rate and the lowest would equate to the best, but that’s not quite the case because of annual fees. Although low rate credit cards have lower annual fees than rewards credit cards, you still have to do some calculations and understand your financial situation. Some of the best low interest credit cards have an annual fee; therefore you need to determine whether your savings on interest payments will outweigh the annual fee. If not, then choosing a low interest card without an annual fee might be the best option for you. Ideally though, the best low interest credit card would be one with no annual fee and the lowest interest rate!
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