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.
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.
For example, you could pay for major purchases on another credit card (such as renovations, furniture or appliances) and transfer your balance to the CIBC Select Visa* Card to benefit from its 0% interest rate on balance transfers for ten months.
CIBC Select Visa* Card users can also save on gas thanks to the card’s partnership with Journie Rewards, which allows them to save up to 10 cents per litre at participating service stations.
The CIBC Select Visa* Card has an annual fee of $29 (rebated in the first year) and requires a $15,000 annual household income. 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 get a low-interest rate of 12.99 % if you decide 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 allows you to take advantage of the American Express installment plan (Plan It) to pay a portion of your statement balance in monthly installments.
With the American Express Essential™ Credit Card, you get $100,000 in travel accident insurance, an additional year of Buyer’s Assurance Protection Plan and a 90-day Purchase Protection Plan.
Finally, as an American Express Essential™ Credit Card holder, 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
There is no minimum income requirement for this BMO credit card.
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.
RBC Visa Classic Low Rate Option Card
The RBC Visa Classic Low Rate Option Card is one of the best low-interest credit cards in Canada.
You can also save on fuel at Petro-Canada stations and earn 20% more Petro-Points by linking your RBC Visa Classic Low Rate Option Card to your Petro-Points membership card. Finally, get free delivery for three months with DoorDash by adding your RBC Visa Classic Low Rate Option Card to your DoorDash account.
You’ll be able to get a free three-month DashPass subscription worth nearly $30, and enjoy unlimited free shipping on orders of $15 or more when you pay with your RBC Visa Classic Low Rate Option Card.
National Bank Syncro Mastercard
The NBC Syncro Mastercard is a low-interest credit card from National Bank. It offers an interest rate of 11.20% for purchases and 15.20% for cash advances and balance transfers.
Since it’s a Mastercard credit card, you’ll 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 (including balance transfers) in Canada.
You can get an introductory interest rate of 0% on cash advances for the first ten months (including balance transfers). And you pay no annual fee for the first year with this Visa credit card.
What’s more, this Visa credit card offers a low-interest rate: 12.99% on purchases, balance transfers and cash advances.
TD Low Rate Visa* Credit Card
With the TD Low Rate Visa* Credit Card, you can save on interest with a low annual interest rate of 12.90%† (13.90%† in Quebec) for Purchases and Cash Advance transactions. It’s one of the best low-interest credit cards in Canada.
For a limited time, you can get an 8.99% promotional interest rate on Purchases for the first 6 months† from Account opening.
As a TD Low Rate Visa* Credit Cardholder, you have the option of purchasing Travel Medical Insurance† and Trip Cancellation/Trip Interruption Insurance†. You can also earn 50% more Stars at Starbucks® locations.
Finally, you can use your TD Low Rate Visa* Credit Card with Apple Pay† or Samsung Pay†.
Frequently asked questions about low-interest credit cards
What is a low-interest credit card?
Comme son nom l’indique, cette carte vous fait profiter d’un taux d’intérêt plus bas que le taux standard. Au Canada, elle représente un moyen de paiement privilégié par les consommateurs.
En général, elle propose des taux d’intérêt inférieurs à 12 %. Voilà une option plutôt avantageuse pour les personnes qui remboursent le minimum dû de leur solde par mois.
Par ailleurs, certaines cartes de crédit à faible taux d’intérêt offrent des options supplémentaires très intéressantes. Ici, on parle de points de fidélité, d’assurances gratuites et d’autres éléments qui peuvent correspondre à notre profil d’acheteur. C’est pourquoi nous conseillons toujours de magasiner les meilleures cartes de crédit sur le marché avant d’arrêter votre choix!
Consultez les meilleures offres de transfert de solde de carte de crédit.
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.
- Save money
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.
How can I avoid paying interest on my credit card?
To avoid paying interest on a credit card, it’s essential to understand how your card’s billing and repayment system works. Here are some tips on how to avoid interest charges on your credit card:
- Pay the full balance each month: The surest way to avoid interest is to pay your credit card balance in full each month before the due date. This means you don’t carry an outstanding balance from one month to the next, so you won’t accrue interest.
- Know the exp iry date: Make sure you know the expiry date of your credit card. Payments must be made by this date to avoid interest and late fees.
- Avoid cash advances: Cash advances on your credit card are generally subject to high interest rates from day one. It’s best to avoid using your card for cash advances if possible.
- Use credit wisely: Use your credit card responsibly and avoid spending beyond your means. Don’t rely on your credit card for purchases you can’t afford to pay for in full on your next billing.
- Choose a low-interest card: If you intend to carry a balance on your credit card, consider choosing a low-interest credit card. This will reduce interest costs in the event of balance deferral.
- Set up payment alerts: Many credit card issuers offer alert services that remind you when your payment is due. Use them so you don’t forget to pay on time.
- Avoid minimum payments: While paying the minimum payment saves you from late fees, it doesn’t prevent you from accruing interest. Try to pay more than the minimum if you can’t repay the full balance.
- Read contract terms: Familiarize yourself with the terms and conditions of your credit card contract to understand interest rates, fees and billing policies.
- Managing transferred balances: If you transfer a balance to take advantage of a promotional interest rate, make sure you comply with the terms and conditions of the offer. One-off payments are generally necessary to maintain the promotional rate.
By following these tips and managing your credit card use wisely, you can avoid paying unnecessary interest and maintain good financial health.
Why should I choose a low-interest or low-rate credit card in Canada?
Choosing a low-interest credit card can help you save money on interest when you carry an unpaid balance. This can be useful if you plan to carry over sales from one month to the next.
Is a low-interest credit card similar to a rewards credit card?
Low-interest credit cards generally don’t offer rewards. For this, you should opt for one of these credit card offers with rewards(cash back or travel).
How can I compare credit card interest rates in Canada?
You can compare credit card interest rates by visiting card issuer websites, using online comparison tools such as Milesopedia, or requesting information directly from banks and credit unions.
What is the average interest rate on low-rate credit cards in Canada?
The average interest rate on low-rate credit cards in Canada can vary, but is generally lower than on standard-rate credit cards. Exact rates depend on the issuer and your credit rating.
Are there any hidden fees associated with low-interest credit cards and certain conditions to be met?
Some low-interest credit cards in Canada may have an annual fee or foreign transaction fee. It is essential to read the terms and conditions of the contract to understand all associated costs.
Do low-interest credit cards offer additional benefits?
Some low-interest credit cards offer benefits such as cash rewards, insurance or loyalty programs, although these may be less generous than those of standard-rate credit cards.
How can I apply for a low-interest credit card in Canada?
To apply for a low-interest credit card in Canada, you’ll usually need to complete an application online or in person with the card issuer. Make sure you provide all the required information and meet the eligibility criteria.
Higher up on this page, you’ll find the best low-interest credit card offers available today.
Who is eligible for a low-interest credit card in Canada?
Eligibility for a low-interest credit card in Canada depends on factors such as your credit score, income, financial history and other criteria determined by the card issuer.
What are the advantages of paying off low-interest credit card balances quickly?
Paying off low-interest credit card balances quickly can save you even more on interest. It can also improve your credit rating and help you avoid accumulating debt.
Where can I find up-to-date information on low-interest credit cards in Canada?
You can find up-to-date information on low-interest credit cards in Canada by visiting card issuer websites, reading online reviews on Milesopedia and in its community. Be sure to check back regularly to stay informed of current offers.
Can I transfer my balance to a low-interest credit card?
Yes, you can make balance transfers to a low-interest credit card. Be aware of balance transfer fees that may be charged by the credit card issuer, and of the conditions governing balance transfers. Check out the best credit card offers for balance transfers.