The best low-interest credit cards in Canada for 2024
If you carry a balance, consider switching to one of these low-interest cards.
If you carry a balance, consider switching to one of these low-interest cards.
Credit card interest rates aren’t all the same. If you carry a balance on your credit card, or if you expect to take on debt that will take some time to pay off, you might want to consider applying for a low-interest credit card.
The savings could be substantial: while most regular credit cards charge around 20% in interest, the cards listed below offer rates that can be half that, or less. Some low-interest cards even come with attractive balance transfer promotions that will allow you to pay down debt at a greatly reduced rate for a limited time. To find out which have the best rates, perks and promotions, read on for our list of the best low-interest credit cards in Canada.
MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.
At a glance: The MBNA True Line Gold Mastercard has a regular purchase interest rate of 8.99%—that’s less than half of what’s on a typical credit card. Plus, the $39 annual fee is manageable.
At a glance: The Flexi Visa from Desjardins credit union offers a low 10.90% interest rate. Plus it has perks like limited travel insurance, up to $1,000 in new mobile device insurance, and the ability to pay for larger purchases in monthly instalments.
At a glance: This low-interest card from MBNA gets you many of the same perks as the MBNA True Line Gold Mastercard—also on this list—with slightly higher interest rates. The advantage of this card is that it comes with no annual fee and a lengthy no-interest balance transfer.
This offer is not available for residents of Quebec.
At a glance: The only American Express card on this list, this no-annual-fee Essential credit card offers a low 12.99% interest rate. It also comes with Amex-related perks like Front-of-the-Line experiences, dining and entertainment, and special offers.
At a glance: With a very reasonable $29 annual fee and a 13.99% interest rate, the BMO Preferred Rate Mastercard will appeal to those who want to stick with a big bank—particularly current BMO customers. The welcome offer sweetens the pot.
At a glance: Unlike most credit cards, the National Bank Synchro Mastercard comes with a variable interest rate. You’ll pay an interest rate of 4% plus the bank’s prime rate (or 11.2%) on purchases. The Synchro credit card has the benefit of a lower interest rate than other cards, but it does carry the risk that your interest rate could rise in the future.
The MoneySense editorial team selects the best credit cards by assessing the value they provide to Canadians across various categories. Our best low-interest credit cards ranking is based on a comparison of an extensive list of card details and features, including competitively-low interest rates, annual fees and welcome offers. We have also considered the pros and cons of each card to help you determine which ones best suit your financial needs. Our rankings are an unbiased source of information for Canadians. The addition of links from affiliate partners has no bearing on the results. Read more about how MoneySense makes money.
Rewards and cash back credit cards can be worth using if you have the ability to pay off your credit card in full every month. Otherwise, you’ll rack up interest charges that outpace the value of your rewards. Take the same example above: $1,000 in debt on a credit card with a 19.99% APR gets you around 0.0548% (19.99%/365), or just over $0.54, in interest charges every day.
Most credit cards offer a fixed interest rate, meaning that there is a single, unchanging percentage charged on your purchases. With a variable rate create card, on the other hand, the rate you are charged on unpaid balances can change based on a few factors.
Typically, the rate is tied to the prime rate, which fluctuates, with an additional fixed percentage on top. For example, a card might charge the bank’s prime rate plus 5%. Also, your credit score plays a role in determining how low of a rate you can get.
There’s a simple reason to consider a variable rate card: If you have an excellent credit score, you could land some of the lowest rates available in the credit card market. However, if you don’t have a great credit score, you want to keep things simple or need a card that also comes with a great balance transfer promotion, you may want to consider one with a fixed rate.
If you go with a low-interest credit card, you’ll save big on the debt you’re trying to pay off. Some cards go as low as 8.99%, like the MBNA True Line Gold Mastercard. For example, a $1,000 debt will cost you around $0.24 per day (8.99%/365) vs. $0.54 a day with the higher-rate card in the example above. The low APR will more than make up for not earning rewards. With less of your payments going to interest, you can actually pay down debt. After that, the money is yours to spend on that dreamed-of vacation or another goal.
One simple way to lower your credit card purchase interest rate charges is by switching to a low-interest rate card. If you tend to carry a balance, consider strategies like setting up automatic payments to your credit card to chip away at the amount you owe and reduce your interest charges on any unpaid balances. Consider using the avalanche or snowball method to pay off larger credit card debts.
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I have HSBC rewards card. This is a great card among the pile. Unlike MBNA, it has low interest on cash advances as well as purchases. MBNA known to reduce credit limit without any prior warning or justification, their customer service one of the worst in the world. HSBC is the only low interest card offer rewards, low yearly fee, and the lowest interest rate on purchase, cash advances and balance transfer comparisons to all other low interest credit card.