Best Low Interest Credit Cards in Canada

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By Clive Shapiro

  I

July 20, 2020

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Canadian Flag Blowing in the Wind

Best Low Interest Credit Cards in Canada

By Clive Shapiro

  I

July 20, 2020

Why Would I Want a Low Interest Credit Card?

Are you someone who frequently carries a balance on your card? If so, you might find a low interest credit card more suitable to your needs.

As you are well aware, interest on credit cards usually have a compounded type of calculation. What this means in its most basic form, is that you are not only paying interest on your principal, which includes new purchases and any unpaid balance to date, but also on any accumulated interest of previous periods. Hence the term “interest on interest”.

Most “other credit cards have other perks such as cashback, travel points, rewards, discounts on gas etc, but they will all usually carry a higher interest rate typically above 15% and commonly 19.99% and higher. What you should consider, especially since your curiosity led you here, is a card who’s primary feature is an interest rate under 11%.

Many folks have one or two credit cards that may already have a substantial balance and are looking to take advantage of these low interest rates for existing purchases.

With this type of card in your holster, you can easily transfer your balance from one of your higher interest cards, over to this one. The compound interest rules will still apply, however you will have a much easier time getting in front of some of that debt you’ve accumulated.

Best 3 Lowest Interest Rate Cards

At a Glance

MBNA True Line Mastercard

4.5/5
$0
Annual Fee

Distinguishing Features

Earn 3 BMO points on dining, travel and entertainment

Standard everyday purchase rate and balance transfers at a low 12.99% annually

World Access Wifi -No extra fees or roaming charges

No minimum yearly income requirements

Great card for those with fair to good credit

Great card for those with a credit score ranging from fair to good.

Special Offers

40 Thousand Bonus Points
Fraud protection included 24/7 20 Thousand Bonus Points
Number 2 Travel Points Credit Card

Desjardins Modulo Visa Credit Card

4.5/5

$50

Annual Fee

Distinguishing Features

Grocery cart with food

Low everyday interest rate of 10.9% for purchases and cash advances

Great card for those with fair to good credit
Very accessible card for those with lower yearly incomes!
Mobile device Insurance up to $1000 reimbursement

Mobile device insurance on lost/stolen/damaged devices up to $1000 reimbursement

Special Offers

20 Thousand Bonus Points
Desjardins Rewards Program: 1 Bonusdollars® for every $100 spent
Number 3 Travel Points Credit Card

Capital One Low Rate Guaranteed Mastercard

4.5/5

$79

Annual Fee

Distinguishing Features

Hamburger Fries and Coke
Very cozy A.P.R of 14.9% on purchases and balance transfers
Insurance coverage against collision or theft for auto rentals
Insurance provided for stolen or damaged vehicles
Credit Card with Extended Purchase Warranty
Purchase Assurance, Price Protection and Basic Travel Insurance with Gold Card option.

Special Offers

30 Thousand Bonus Points

Best 3 Low Rate Interest Cards

At a Glance

$0

Annual Fee

$50

Annual Fee 

$79

Annual Fee 

Distinguishing Features

Standard everyday purchase rate and balance transfers at a low 12.99% annually

Earn 3 BMO points on dining, travel and entertainment

No minimum yearly income requirements

Great card for those with fair to good credit

Great card for those with fair to good credit.

Hamburger Fries and Coke
Low everyday interest rate of 10.9% for purchases and advances

Includes basic rewards program with 6 redemption categories to choose from 

Mobile device Insurance up to $1000 reimbursement

Mobile device insurance on lost/stolen/damaged devices up to $1000 reimbursement

Hamburger Fries and Coke
Very cozy A.P.R of 14.9% on purchases and balance transfers
Insurance coverage against collision or theft for auto rentals

Auto Rental Insurance provided for stolen or damaged vehicles

Credit Card with Extended Purchase Warranty
Purchase Assurance, Price Protection and Basic Travel Insurance with Gold Card option.

Special Offers

Fraud protection included 24/7
20 Thousand Bonus Points

Redeem Bonusdollars® from your choice of 6 categories :

  • Rewards and Gift Cards
  • Travel
  • Financial products and services
  • Show tickets
  • Donations
  • Account credit
30 Thousand Bonus Points

Upgrade to Gold Status and enjoy Travel Insurance including:

  • Auto
  • Baggage Delay
  • Emergency Medical
  • Document Replacement

How do I Know Which Card to Choose?

Spiralled Stack of Credit Card

To be quite honest, choosing a card isn’t rocket science, but it does take an understanding of your personal spending habits and what you plan on using the card for.

Essentially there are 2 main choices.

Annual fee and no annual fee. That, my friend, is what it all boils down to. Usually a card with no annual fee will give you up front savings but a slightly higher rate, whereas the card with an annual fee will offer lower rates from the get go, as long as you are willing and able to sign off on the yearly charges.

Many of these low interest cards have secondary features that might be of use such as bonusdollars, purchase price protection, comprehensive insurance and promotional annual interest rates. Just make sure that you are aware that these perks are silver medal to your main objective. Low interest, permanently. 

Ultimately, it all comes down to determining if the annual fee outweighs the interest charges you might incur using a card with slightly higher interest rates. Either way, you’ll be allocating your funds much more economically, which gives you some breathing room in this pressure cooker of financial life.

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