Best Low Interest Credit Cards in Canada

If there’s a chance you’ll carry any credit card debt from month-to-month, you may want to have a low interest credit card in your wallet. Check out this list of the best low interest credit cards in Canada, find the right one for you and apply today, so you can stop paying hefty interest charges.

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Some credit cards come with an annual fee and some do not. The general rule for this is that the greater the rewards, the larger the annual fee. The annual fee is charged once per year and is added to your credit card statement. If you don't mind paying an annual fee, select I don't mind. If you'd prefer not to pay to use a credit card, select None. Some rewards credit cards have an annual income requirement. Enter either your personal or household annual income here, as it may affect which credit cards you are able to apply for.

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What type of rewards do you want to earn for every dollar you spend? Is cash back important to you? Would you prefer gift cards or store credit? What about free flights and hotels? Think about what's most important to you and what would help your budget the most, then look for the best cards to offer that reward. Do you have a preference of whether you want a Visa, MasterCard or American Express card? Select which network you'd prefer, or select "All" if you don't have a preference.
There are a number of lenders and companies that issue credit cards - and they aren't just financial institutions. If you would prefer to get a credit card from one specific credit card issuer, choose the one you want. Otherwise, select All banks. Most credit cards have a minimum credit score requirement. Select your credit score to filter your credit card results based on your credit score and which cards you are most likely to be approved for. If you aren’t sure what your credit score is, select “Not sure”, and your results will be filtered without taking your credit score in to account. There are many different credit card reward programs available. If you have a preferred reward program, such as Aeroplan Miles, select your choice using the dropdown. Note that each card only uses one reward program. Enter the dollar amount you spend each month on your credit card. Edit your monthly spend by each spending category in the 'monthly spending by category' tab below.

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Some credit cards come with an annual fee and some do not. The general rule for this is that the greater the rewards, the larger the annual fee. The annual fee is charged once per year and is added to your credit card statement. If you don't mind paying an annual fee, select I don't mind. If you'd prefer not to pay to use a credit card, select None. Some rewards credit cards have an annual income requirement. Enter either your personal or household annual income here, as it may affect which credit cards you are able to apply for.

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Do you carry a balance on your credit card each month? This isn't how much you spend on your card, but how much you typically carry over into a new month. If so, write that amount here, so we can calculate how much interest you'll be charged.

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There are a number of lenders and companies that issue credit cards - and they aren't just financial institutions. If you would prefer to get a credit card from one specific credit card issuer, choose the one you want. Otherwise, select All banks. Most credit cards have a minimum credit score requirement. Select your credit score to filter your credit card results based on your credit score and which cards you are most likely to be approved for. If you aren’t sure what your credit score is, select “Not sure”, and your results will be filtered without taking your credit score in to account. Do you have a preference of whether you want a Visa, MasterCard or American Express card? Select which network you'd prefer, or select "All" if you don't have a preference.
Some credit cards come with an annual fee and some do not. The general rule for this is that the greater the rewards, the larger the annual fee. The annual fee is charged once per year and is added to your credit card statement. If you don't mind paying an annual fee, select I don't mind. If you'd prefer not to pay to use a credit card, select None. Some rewards credit cards have an annual income requirement. Enter either your personal or household annual income here, as it may affect which credit cards you are able to apply for.

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Do you have a preference of whether you want a Visa, MasterCard or American Express card? Select which network you'd prefer, or select "All" if you don't have a preference.
There are a number of lenders and companies that issue credit cards - and they aren't just financial institutions. If you would prefer to get a credit card from one specific credit card issuer, choose the one you want. Otherwise, select All banks. Most credit cards have a minimum credit score requirement. Select your credit score to filter your credit card results based on your credit score and which cards you are most likely to be approved for. If you aren’t sure what your credit score is, select “Not sure”, and your results will be filtered without taking your credit score in to account. If you are currently carrying a balance on another credit card, you may want to take advantage of a balance transfer promotional offer with one of the credit cards listed below. Enter the amount you would transfer to the new card, to find out what the promotional interest rate and period are.

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Some credit cards come with an annual fee and some do not. The general rule for this is that the greater the rewards, the larger the annual fee. The annual fee is charged once per year and is added to your credit card statement. If you don't mind paying an annual fee, select I don't mind. If you'd prefer not to pay to use a credit card, select None. Do you have a preference of whether you want a Visa, MasterCard or American Express card? Select which network you'd prefer, or select "All" if you don't have a preference.
There are a number of lenders and companies that issue credit cards - and they aren't just financial institutions. If you would prefer to get a credit card from one specific credit card issuer, choose the one you want. Otherwise, select All banks. Most credit cards have a minimum credit score requirement. Select your credit score to filter your credit card results based on your credit score and which cards you are most likely to be approved for. If you aren’t sure what your credit score is, select “Not sure”, and your results will be filtered without taking your credit score in to account.
Monthly spending by category
Monthly spending by category

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Credit card Purchase Interest Rate Balance transfer rate Annual fee Net reward (1st year) Monthly interest fee Monthly interest fee Required deposit
12.49% $30
$5.20
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11.99% $29
$5.00
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14.9% $59
$6.21
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13.99% $29
$5.83
Get details
11.9% $20
$4.96
Get details
8.99% $0
$3.75
Get details
11.99% $20
$5.00
Get details
10.9% $50
$4.54
Get details
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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!


Best Low Interest Credit Cards in Canada 2017


American Express Essential Credit Card

The American Express Essential Credit Card packs a double punch: No annual fee and an 8.99% interest rate on purchases, cash advances, and balance transfers, currently the lowest fixed rate offered by a credit card in Canada. For new cardholders, it also offers a competitive 1.99% interest rate on balance transfers within the first six months. Some low interest credit cards don’t offer rewards, but this card gets you access to American Express Invites, which includes ticket pre-sales and reserved seats for concerts (including shows in the U.S.), movie screenings, and culinary events, and other special offers. If you miss two monthly minimum payments within one year, the interest rate jumps to 23.99%. If you miss two consecutive minimum payments, or three minimum payments within one year, it goes up to 26.99%.

BMO Preferred Rate MasterCard

The BMO Preferred Rate MasterCard is one of the most straightforward no-frills cards out there, with an across-the-board interest rate of 11.9% on purchases, cash advances, and balance transfers. This card has a $20 annual fee, but if you tend to card a balance on your card from month to month, the lower rate is worth compared to a no fee card with a higher interest rate. Like all low interest credit cards, the interest rate gets jacked up if you miss a certain number of monthly minimum payments. With this card, if you miss two payments within a year, your interest rate will go up to 16.9%.

Scotiabank Value Visa

The Scotiabank Value Visa makes it easy to both consolidate existing debt at a lower interest rate, and to minimize future interest charges. With an annual fee of $29, this card charges a 11.9% interest rate on purchases, cash advances, and balance transfers. It also offers a special introductory interest rate of 1.99% on balance transfers for the first six months. Another small but useful perk for cardholders is a 20% discount on Avis car rentals. Once again, don’t miss your monthly payments: Your interest rate will increase to 24.99% on purchases and 26.99% on cash advances if you miss two or more monthly minimum payments within a 12-month period.

Home Trust Secured Annual Fee Visa

Secured credit cards are designed for people with no credit or poor credit, and require you to put down a security deposit that acts as your card’s limit. With the Home Trust Secured Visa, you can put down a deposit between $500 and $10,000 and use it like you would any other credit card. This card has no annual fee, but it’s not a low interest card – it carries the typical rewards credit card interest rate of 19.99%. Secured credit cards are meant to be used to build a positive credit history, so it’s in your best interest to pay off your balance in full each month – especially if carrying debt from month to month got you deep into debt in the first place. Once you build a solid credit history and prove you can use a secured credit card responsibly, you can graduate to an unsecured credit card like one of the low interest cards mentioned above.


Other Types of Credit Cards