Best low-interest credit cards in Canada
This is no secret. Credit card interest rates make a real difference to our budget. This is even more true if you are among those who only pay the minimum amount due at the end of the month on your credit card.
If this is your case, the following lines will catch your attention. In fact, low-interest credit cards are a highly advantageous tool for you. Ultimately, they allow you to bypass known debt traps in Canada.
In the next few lines, find out everything you need to know about the low-interest credit card: from its description to the best options in the country.
HSBC +Rewards™ Mastercard®
The HSBC +Rewards™ Mastercard® is a credit card offering rewards and a low-interest rate (11.9%). With the HSBC +Rewards™ Mastercard®, you can earn:
- 2 points per dollar on eligible dining or entertainment purchases
- 1 point per dollar for all other purchases
This credit card is one of the only ones in Canada to offer a Price Protection Service: find a lower price within 60 days of your purchase, the difference will be refunded, up to $500 per eligible item!
For a limited time, you can get:
- 40,000 points* ($200 value in travel rewards) if you live in Quebec
- 35,000 points* ($175 value in travel rewards) and a first-year annual fee waiver* if you live outside Quebec
No minimum income is required to get this credit card.
CIBC Select Visa* Card
The CIBC Select Visa* Card is one of the best balance transfer Visa credit cards in Canada.
With this CIBC Credit Card with a balance transfer option, you earn 0% interest on balance transfers for up to 10 months. You’ll only have to pay a 1% fee when you transfer your balance from another card. Once this promotional period ends, the standard card interest rate of 13.99% will apply to any remaining balance. This interest rate is lower than the rates charged by many other credit cards.
CIBC Select Visa* Card users can also save on gas through the card’s partnership with Journie Rewards, which allows them to save up to 10 cents per litre at participating gas stations.
The CIBC Select Visa* Card has an annual fee of $29, which is waived in the first year, and requires an annual household income of at least $15,000 to qualify. Despite its lack of additional benefits, the CIBC Select Visa* Card comes with up to $100,000 in Common Carrier Accident Insurance and allows users to add up to three authorized users at no additional cost.
American Express Essential™ Credit Card
With the American Express Essential™ Credit Card, you can take advantage of a 12.99% low-interest-rate, if you choose to carry a balance and make your minimum monthly payments on time. It is one of the best low-interest-rate credit cards in Canada.
In addition, this low-interest credit card has no annual fee and allows you to take advantage of the American Express Installment Program (Plan It) to choose a portion of your statement balance to pay in monthly installments.
With the American Express Essential™ Credit Card, you are covered with a $100,000 Travel Accident Insurance, an additional year warranty with the Buyer’s Assurance® Protection Plan and a 90-day Purchase Protection Plan.
Finally, as an American Express Essential™ Credit Cardmember, you can take advantage of exclusive American Express offers for statement credits on select purchases and American Express online travel services.
BMO® Preferred Rate Mastercard®*
The BMO Preferred Rate Mastercard is a Bank of Montreal credit card that offers:
- 0.99% introductory interest rate on Balance Transfers for 9 months
- First-year annual fee waiver
You can use this low-interest credit card at Costco because it is a Mastercard credit card.
Finally, you’ll receive insurance on purchases charged to your BMO Preferred Rate Mastercard.
NBC Syncro Mastercard
The NBC Syncro Mastercard is a low-interest credit card from National Bank. The NBC Syncro Mastercard is a low-interest credit card from National Bank. You can get an interest rate of 10.70% for purchases and 14.70% for cash advances and balance transfers.
Since it is a Mastercard credit card, you will be able to use the NBC Syncro Mastercard at Costco. Finally, it offers you insurance for your purchases.
Scotiabank® Value VISA Card
The Scotiabank Value® Visa* Card is one of the best credit cards for cash advances in Canada.
You can get a 0% introductory interest rate on cash advances for the first six months. And you pay no annual fee for the first year with this Visa credit card.
In addition, this Visa credit card offers a low-interest rate of 12.99% on purchases and cash advances.
What is a low-interest credit card?
As the name suggests, this card offers a lower interest rate than the standard rate. In Canada, it is a preferred method of payment by consumers.
Generally, it offers interest rates below 12%. This is a great option for people who pay off the minimum balance due each month.
In addition, some low-interest credit cards offer additional attractive options. Here, we are talking about loyalty points, free insurance and other elements that may correspond to our buyer profile. That’s why we always recommend shopping around for the best credit cards on the market before making your choice!
Check out the best credit card balance transfer offers.
Why use a low-interest credit card in Canada?
The low-interest credit card is the payment method of choice for many. According to our experts, there are several reasons for this. Here are some of them.
Do you have high interest credit card debt? Start saving by transferring your debt to a low-interest credit card. That way, you can pay off your debt faster and pay less interest in total.
Better debt management
Do you have several credit cards with different interest rates? Knowing which card to reimburse first can be difficult. Here, a low-interest credit card simplifies the management of your debt, while offering you a single interest rate to pay back.
Better financial management
A low-interest credit card helps you better manage your budget and cash flow. For example, it educates you to spend responsibly and not to exceed your credit limit. That way, you know you’ll pay less interest on your debt.
Less financial stress
Do you have high interest credit card debt? Using a low-interest credit card will help reduce this stress. In other words, it allows you to pay off your debt more responsibly.