Low interest credit cards are credit cards that offer a lower than average interest rate on purchases and/or balance transfers. These credit cards are designed to help you save money on interest charges, which can be especially helpful if you carry a balance on your credit card.

Typically, low interest credit cards have an interest rate of around 12-14%, although some credit cards may offer even lower rates, particularly for promotional periods. Some low interest credit cards may also offer a lower interest rate for balance transfers or may have no interest charges for a limited period of time.

There are several low-interest credit cards available in Canada, but the best ones depend on your specific needs and financial situation. Here are some of the top options to consider:

1. MBNA True Line Mastercard: This credit card offers a low annual interest rate of 12.99% on purchases and balance transfers, with no annual fee. It also includes purchase protection and extended warranty coverage.
2. Scotiabank Value Visa: This credit card has an interest rate of 12.99% on purchases and balance transfers, with no annual fee. It also includes optional insurance coverage and a rewards program.
3. Tangerine Money-Back Credit Card: This credit card offers a low interest rate of 12.99% on purchases and balance transfers, with no annual fee. It also includes cash back rewards on eligible purchases, with bonus categories that can be chosen by the cardholder.
4. BMO Preferred Rate Mastercard: This credit card has a low interest rate of 12.99% on purchases and balance transfers, with an annual fee of $20. It also includes optional insurance coverage and discounts on car rentals.
5. CIBC Select Visa Card: This credit card offers a low interest rate of 13.99% on purchases and balance transfers, with no annual fee. It also includes optional insurance coverage and a rewards program.
6. American Express Essential Credit Card: This credit card offers a low interest rate of 8.99% on purchases, with no annual fee. It also includes purchase protection and extended warranty coverage.
7. National Bank Syncro Mastercard: This credit card has a low interest rate of 9.9% on purchases and balance transfers, with an annual fee of $35. It also includes travel insurance and a rewards program.
8. HSBC +Rewards Mastercard: This credit card offers a low interest rate of 11.9% on purchases and balance transfers, with no annual fee. It also includes travel insurance, a rewards program, and a welcome bonus.
9. Rogers World Elite Mastercard: This credit card has an interest rate of 15.99% on purchases and balance transfers, with an annual fee of $0 for the first year and $99 thereafter. It also includes cash back rewards on eligible purchases, with bonus categories that can be chosen by the cardholder.
10. Desjardins Modulo Visa: This credit card offers a low interest rate of 10.9% on purchases and balance transfers, with an annual fee of $50. It also includes optional insurance coverage and a rewards program.
11. RBC RateAdvantage Visa: This credit card offers a low interest rate of 11.99% on purchases and balance transfers, with an annual fee of $39. It also includes purchase security and extended warranty coverage.
12. TD Emerald Flex Rate Visa: This credit card has a variable interest rate that ranges from 6.75% to 24.99% on purchases and balance transfers, with an annual fee of $25. It also includes optional insurance coverage and a rewards program.
13. Capital One Low Rate Mastercard: This credit card offers a low interest rate of 14.9% on purchases and balance transfers, with no annual fee. It also includes travel accident insurance and extended warranty coverage.
14. Laurentian Bank Visa Black: This credit card has a low interest rate of 9.9% on purchases and balance transfers, with an annual fee of $0 for the first year and $75 thereafter. It also includes travel insurance, a rewards program, and a welcome bonus.
15. Meridian Visa Cash Back Card: This credit card offers a low interest rate of 13.5% on purchases and balance transfers, with no annual fee. It also includes cash back rewards on eligible purchases and a welcome bonus.
16. Canadian Tire Low Rate Mastercard: This credit card has a low interest rate of 12.99% on purchases and balance transfers, with no annual fee. It also includes rewards on eligible purchases and optional insurance coverage.
17. Coast Visa Desjardins Low Interest Visa: This credit card offers a low interest rate of 9.9% on purchases and balance transfers, with an annual fee of $50. It also includes a rewards program and optional insurance coverage.
18. PC Financial Mastercard: This credit card has a low interest rate of 12.99% on purchases and balance transfers, with no annual fee. It also includes PC Optimum points on eligible purchases and purchase assurance and extended warranty coverage.
19. Home Trust Preferred Visa: This credit card offers a low interest rate of 14.9% on purchases and balance transfers, with no annual fee. It also includes optional insurance coverage and purchase protection.
20. Servus Low Interest Mastercard: This credit card has a low interest rate of 11.99% on purchases and balance transfers, with an annual fee of $0 for the first year and $25 thereafter. It also includes rewards on eligible purchases and optional insurance coverage.

Here’s a table that summarizes the features of the low-interest credit cards in Canada mentioned earlier, including additional card features:

Please note that the information in this table is subject to change, and the table is meant to be a general guide only.

Facts

Here are some facts about low interest credit cards:

1. Low interest credit cards typically offer a lower interest rate than other credit cards, which can help you save money on interest charges.
2. Low interest credit cards may have a variable interest rate that can change over time, depending on market conditions and other factors.
3. Some low interest credit cards may offer a low or 0% introductory interest rate for a limited period of time, after which the interest rate may increase significantly.
4. Low interest credit cards may have lower fees than other credit cards, such as annual fees, balance transfer fees, or foreign transaction fees.
5. Low interest credit cards may require a higher credit score or better credit history than other credit cards.
6. Some low interest credit cards may offer rewards or cash back programs, but these rewards may be lower than other credit cards.
7. Low interest credit cards can be a good option if you carry a balance on your credit card or want to have more financial flexibility.
8. Using a low interest credit card responsibly, making payments on time, and paying off your balance in full each month can help you build your credit history and improve your credit score.
9. Low interest credit cards may not be as widely available as other credit cards, and may only be offered by certain banks or credit card issuers.

Low interest credit cards for balance transfers

If you’re looking for a low-interest credit card specifically for balance transfers in Canada, here are some options to consider:

1. MBNA True Line Mastercard: This credit card offers a low balance transfer interest rate of 12.99% for the first 10 months, with no balance transfer fee. It also has a low annual interest rate of 12.99% on purchases and no annual fee.
2. Scotiabank Value Visa: This credit card has a balance transfer interest rate of 0.99% for the first six months, with a balance transfer fee of 1%. After that, the interest rate increases to the standard rate of 12.99% on balances, with no annual fee.
3. Tangerine Money-Back Credit Card: This credit card offers a balance transfer interest rate of 1.95% for the first six months, with a balance transfer fee of 1%. It also has a low annual interest rate of 12.99% on purchases and no annual fee.
4. BMO Preferred Rate Mastercard: This credit card has a balance transfer interest rate of 3.99% for the first nine months, with a balance transfer fee of 1%. After that, the interest rate increases to the standard rate of 12.99% on balances, with an annual fee of $20.
5. National Bank Syncro Mastercard: This credit card offers a balance transfer interest rate of 1.99% for the first six months, with a balance transfer fee of 1%. It also has a low annual interest rate of 9.9% on purchases and an annual fee of $35.

How to balance transfer credit cards

Here’s a general guide on how to balance transfer credit cards:

1. Check your current credit card balance and interest rate. Make sure you know how much you owe and the interest rate you’re currently paying.
2. Research low-interest balance transfer credit cards. Look for credit cards that offer a low or 0% introductory interest rate on balance transfers, and compare their fees, rewards programs, and other benefits.
3. Apply for a new credit card. Once you’ve chosen a credit card that suits your needs, apply for it and wait for approval.
4. Contact the new credit card issuer. Once you’ve been approved for the new credit card, contact the issuer and provide them with the details of the balance you want to transfer from your old credit card. This typically involves providing the account number and balance of the old credit card.
5. Wait for the transfer to be completed. The new credit card issuer will process the balance transfer and pay off the balance on your old credit card. This process can take a few days to a few weeks to complete, so be patient.
6. Pay off the transferred balance. Once the balance transfer is complete, start making payments on the new credit card to pay off the transferred balance before the promotional interest rate period ends.
7. Avoid using the old credit card. To avoid accruing more debt, it’s best to avoid using the old credit card until you’ve paid off the transferred balance on the new credit card.

Low interest credit cards for bad credit in Canada

If you have bad credit in Canada, it can be challenging to qualify for a low-interest credit card. However, some credit cards are designed for people with bad credit and offer a lower interest rate than other credit cards. Here are some options to consider:

1. Refresh Financial Secured Visa: This credit card requires a security deposit to open, but offers a low interest rate of 17.99% on purchases and balance transfers, with no annual fee. It’s a good option for people with bad credit who want to rebuild their credit history.
2. Home Trust Secured Visa Card: This credit card also requires a security deposit to open, but offers a low interest rate of 14.9% on purchases and balance transfers, with no annual fee. It’s a good option for people with limited credit history or a low credit score.
3. No-Fee Scotiabank Value Visa Card: This credit card has a higher interest rate of 16.99% on purchases and balance transfers, but has no annual fee. It’s designed for people with bad credit and includes optional insurance coverage.
4. Capital One Low Rate Guaranteed Mastercard: This credit card has a higher interest rate of 19.8% on purchases and balance transfers, but is available to people with bad credit who are unable to qualify for other credit cards. It includes purchase protection and extended warranty coverage.

Low interest credit cards for fair credit in Canada

If you have fair credit in Canada, you may still be able to qualify for a low-interest credit card. Here are some options to consider:

1. Capital One Low Rate Mastercard: This credit card offers a low interest rate of 14.9% on purchases and balance transfers, with no annual fee. It’s designed for people with average credit and can help you build your credit history.
2. Tangerine Money-Back Credit Card: This credit card offers a low interest rate of 12.99% on purchases and balance transfers, with no annual fee. It also includes cash back rewards on eligible purchases, with bonus categories that can be chosen by the cardholder.
3. Home Trust Secured Visa Card: This credit card requires a security deposit to open, but offers a low interest rate of 14.9% on purchases and balance transfers, with no annual fee. It’s a good option for people with limited credit history or a low credit score.
4. CIBC Select Visa Card: This credit card offers a low interest rate of 13.99% on purchases and balance transfers, with no annual fee. It also includes optional insurance coverage and a rewards program.
5. RBC Cash Back Mastercard: This credit card offers a low interest rate of 19.99% on purchases and balance transfers, with no annual fee. It also includes cash back rewards on eligible purchases and optional insurance coverage.

Pros of low interest credit cards

Here are some pros of low interest credit cards:

1. Lower interest rates: Low interest credit cards typically offer a lower interest rate than other credit cards, which can help you save money on interest charges if you carry a balance on your credit card.
2. Lower fees: Low interest credit cards may have lower fees than other credit cards, such as annual fees, balance transfer fees, or foreign transaction fees.
3. Debt management: If you have existing credit card debt, a low interest credit card can help you pay off your debt faster and save money on interest charges.
4. Financial flexibility: A low interest credit card can give you more financial flexibility and peace of mind, knowing that you have a lower interest rate and won’t be charged as much interest if you carry a balance.
5. Credit building: If you use a low interest credit card responsibly and make payments on time, it can help you build your credit history and improve your credit score.

Cons of low interest credit cards

While low interest credit cards can have many benefits, there are also some potential cons to consider:

1. Fewer rewards and perks: Low interest credit cards may not offer as many rewards or perks as other credit cards, such as travel rewards or cash back.
2. Limited promotional periods: Some low interest credit cards may offer a low introductory interest rate for a limited period of time, after which the interest rate may increase significantly.
3. Higher credit requirements: Some low interest credit cards may require a higher credit score or better credit history than other credit cards.
4. Less flexibility: Some low interest credit cards may have restrictions on how you can use your credit, such as limiting cash advances or balance transfers.
5. Limited availability: Low interest credit cards may not be as widely available as other credit cards, and may only be offered by certain banks or credit card issuers.

FAQs

Here are some frequently asked questions about low interest credit cards:

1. What is a low interest credit card?

A low interest credit card is a credit card that offers a lower interest rate on purchases and/or balance transfers than other credit cards. This can help you save money on interest charges if you carry a balance on your credit card.

2. How do I qualify for a low interest credit card?

Qualifications for a low interest credit card may vary by credit card issuer, but typically, you will need a good credit score and credit history to qualify. Some low interest credit cards may also require a minimum income or other financial qualifications.

3. What are the benefits of a low interest credit card?

The benefits of a low interest credit card include lower interest rates on purchases and balance transfers, lower fees, debt management, financial flexibility, and credit building potential.

4. What are the downsides of a low interest credit card?

The downsides of a low interest credit card may include fewer rewards and perks, limited promotional periods, higher credit requirements, less flexibility, and limited availability.

5. Can I get rewards or cash back with a low interest credit card?

Some low interest credit cards may offer rewards or cash back programs, but these rewards may be lower than other credit cards. It’s important to compare the rewards and benefits of each credit card before making a decision.

6. How can I use a low interest credit card responsibly?

To use a low interest credit card responsibly, make payments on time, pay off your balance in full each month, avoid carrying a balance if possible, and stay within your credit limit. This can help you maintain good credit health and avoid accruing debt.

7. What is the difference between a low interest credit card and a balance transfer credit card?

A low interest credit card may offer a low interest rate on purchases and/or balance transfers, while a balance transfer credit card specifically focuses on transferring a balance from one credit card to another with a low or 0% interest rate for a limited period of time.

8. Do low interest credit cards have annual fees?

Some low interest credit cards may have annual fees, but many do not. It’s important to compare the fees and benefits of each credit card before making a decision.

9. How can I compare low interest credit cards?

To compare low interest credit cards, consider the interest rate, fees, rewards and perks, credit requirements, and other features and benefits of each credit card. Look for a credit card that suits your financial needs and credit goals.

10. Can I switch to a low interest credit card from another credit card?

Yes, you can switch to a low interest credit card from another credit card, but you will need to apply for the new credit card and meet the credit requirements. You may also need to pay a balance transfer fee if you transfer a balance from another credit card.

11. What is a grace period on a low interest credit card?

A grace period on a low interest credit card is a period of time, typically 21-25 days, during which you can pay off your balance in full without accruing any interest charges. This can help you avoid paying interest on your purchases if you pay your balance in full each month.

12. How can I avoid paying interest charges on a low interest credit card?

To avoid paying interest charges on a low interest credit card, make sure to pay off your balance in full each month within the grace period. If you do carry a balance, try to keep it as low as possible and pay more than the minimum payment each month to reduce your interest charges.

13. Can I negotiate a lower interest rate on my low interest credit card?

It may be possible to negotiate a lower interest rate on your low interest credit card, particularly if you have a good credit history or have been a loyal customer. Contact your credit card issuer to discuss your options.

14. What should I do if I can’t make my payments on a low interest credit card?

If you can’t make your payments on a low interest credit card, contact your credit card issuer as soon as possible to discuss your options. You may be able to work out a payment plan or hardship program to help you manage your debt.

15. What should I look for when choosing a low interest credit card?

When choosing a low interest credit card, look for a low interest rate on purchases and balance transfers, low fees, a grace period, and any rewards or perks that may be available. Consider your financial needs and credit goals to find a credit card that suits your needs.

16. How can I compare the interest rates of different low interest credit cards?

To compare the interest rates of different low interest credit cards, look at the Annual Percentage Rate (APR) for purchases and balance transfers. The lower the APR, the lower the interest rate you will pay on your credit card balance.

17. Can I use a low interest credit card for international purchases?

Yes, you can use a low interest credit card for international purchases, but be aware that some credit cards may charge foreign transaction fees. Look for a credit card with no foreign transaction fees if you plan to use your credit card for international purchases.

18. How can I avoid paying fees on a low interest credit card?

To avoid paying fees on a low interest credit card, look for a credit card with no annual fee, balance transfer fee, or foreign transaction fee. Pay your bills on time to avoid late fees and over-the-limit fees.

19. What should I do if I notice an error on my low interest credit card statement?

If you notice an error on your low interest credit card statement, contact your credit card issuer as soon as possible to dispute the error. You may need to provide documentation to support your claim.

20. How can I cancel my low interest credit card?

To cancel your low interest credit card, contact your credit card issuer and follow their instructions. Be sure to pay off any outstanding balances and redeem any rewards before cancelling your credit card.