Skip to main content
Ratehub logo
Ratehub logo

The best low interest credit cards in Canada 2021

Do you regularly carry a balance? Quickly see which cards offer the lowest rates to save on interest and pay off your debt sooner.

Compare Canada's best low interest credit cards

The best low interest cards for

any annual fee
CardAnnual feePurchase interest rateBalance transfer rate














A few things we're proud of

  • 1,200,000

    monthly users

  • 9 years


  • Over 1M

    better choices made

  • Trusted partner

    to Canada’s top financial institutions

Our top picks

Ratehub's best credit cards for August 2021

Low interest credit cards FAQ

Should I get a low interest credit card?

When is the best time to use a low interest credit card?

What is the best low interest credit card?

education centre

Have your credit card questions answered with our education centre

If you frequently carry a balance from month-to-month, don't chase rewards on a high-interest credit card but go with a low rate option instead. Save on your interest payments and get matched with the lowest APR credit cards on the market now.

The knowledge bank

By submitting your email address, you acknowledge and agree to's terms of use and privacy policy. Contact us for more information. You can unsubscribe at any time.

Ratehub logo

5 things to know about low interest credit cards

1. They help you save on interest 

If you tend to carry a credit card balance from month-to-month, you should definitely consider a low interest credit card over a rewards credit card. 

Many rewards credit cards have interest rates as high as 19.99%. If you compare this to our pick of the best low interest credit card in Canada (MBNA True Line Gold) which has an interest rate of 8.99%, your monthly payments will be cut in half. Remember, rewards aren't ever worth chasing if you're carrying a balance and paying interest.

Here’s a side-by-side comparison of how much you’d save with the low interest MBNA True Line Gold versus a typical rewards credit card if you carried a balance of $3,000 and made payments of $200 each month.


MBNA TrueLine Gold

Typical Rewards Card







Your monthly payments



Total interest owed



Time until debt is repaid

1.3 years

1.5 years

2. They have low annual fees

Low interest credit cards tend to have lower annual fees. Depending on which card you choose, you can expect an annual fee of anywhere from $0 to $39. That's nothing compared to the $120 or $150 annual fee you might find on some of the best rewards credit cards.

3. They can help you pay off past credit card debts faster

By taking advantage of a balance transfer, you can move the debt you owe on your current credit card over to a low interest card and save on high interest payments in the process. Some low interest cards even come with introductory balance transfer promotions that offer extremely low rates (we’re talking in the single digits) for a limited period of time to help pay off debt even quicker. Just be aware that most low interest credit cards will charge you a flat fee (usually 1% - 3% of your debt) on balance transfers.

4. They rarely offer rewards

One disadvantage of a low interest credit card is it won’t provide the extensive benefits and rewards you’d get with a rewards card. Typically, there’s no way to earn points or cash back on your spending. And your benefits (such as travel insurance) are highly limited.

All that said, low interest cards are still well worth it considering you’ll save a whole lot more on interest payments than you’d earn in rewards anyway. What’s 1% cash back in comparison to saving between 7% to 11% in interest annually.

5. Their cash advance rates may be higher

While some low interest interest credit cards offer low rates on all types of transactions, some do charge high rates for cash advances. We wouldn’t recommend making cash advances with your low interest credit card (or any card for that matter) but if it’s something you’re looking to use, just make sure to shop around and find a card that offers low rates across the board.

Best low APR credit cards for 2021

MBNA True Line Gold Mastercard

The pros:

  • At 8.99%, the MBNA True Line Gold Mastercard is the only credit card to offer a standard fixed interest rate in the single digits for both purchases and balance transfers. 
  • The card has a below-average annual fee of $39.
  • The low interest rate is fixed and won’t fluctuate regardless of your credit rating, income, or the bank’s prime lending rate.
  • You won’t need to earn a specific income in order to qualify.

The cons:

  • There is no limited-time balance transfer promotion (though, the standard balance transfer rate is competitive at 8.99%).
  • The card’s cash advance rate is at the status quo of 24.99%.

MBNA True Line Mastercard

The pros:

  • The MBNA True Line Mastercard doesn’t charge any annual fees yet still offers a low interest rate of 12.99% on purchases and balance transfers (in comparison, most comparable low APR cards from the big banks charge anywhere from $20-$29 in annual fees).
  • The low interest rate is fixed and won’t change regardless of your credit rating, income, or the bank’s prime lending rate.
  • You won’t need to earn a specific income in order to qualify. 

The cons:

  • There is no limited-time balance transfer offer (though, the standard balance transfer rate is competitive at 8.99%).
  • The card’s cash advance rate is at the status quo of 24.99%.

BMO Preferred Rate Mastercard 

The pros:

  • The card has a low standard APR of 12.99% that applies across the board to purchases, balance transfers, and even cash advances.
  • New cardholders will receive a balance transfer of 3.99% for the first nine months (plus, a 1% transfer fee), allowing you to move over the debt you owe on another credit card and pay it off faster at a fraction of the regular interest rate.
  • The card charges a low $20 annual fee, and it’s even waived for the first year.
  • The card issued by one of Canada's big banks, making it ideal for cardholders who want to maintain all their everyday bank accounts (credit card, chequing, and savings accounts) with a single institution.

The cons:

  • The BMO Preferred Rate Mastercard carries the same interest rate as the aforementioned MBNA True Line Mastercard, however, the latter doesn't charge any annual fees.

Summary (+/-)

About Ratehub

We help you find better financial products for your specific needs. Whether you need a mortgage, credit card, savings account, or insurance coverage, we get you the information you need to choose better.

How does make money?

Financial institutions pay us for connecting them with customers. This could be through advertisements, or when someone applies or is approved for a product. However, not all products we list are tied to compensation for us. Our industry leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.