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Best Low Interest Credit Cards in Canada: Credit cards are convenient tools for making purchases, booking travel, and managing expenses. However, they also come with interest charges that can add up quickly if you carry a balance from month to month. If you’re looking for a credit card with a low interest rate, there are several options available in Canada. In this article, we’ll discuss the best low interest credit cards in Canada, their features, benefits, and drawbacks, and help you choose the one that suits your needs.
What is a low interest credit card?
A low interest credit card is a credit card that charges a lower interest rate than the average credit card. Typically, low interest credit cards have an annual percentage rate (APR) of around 10% to 12%, compared to the average credit card APR of 19.99%. This can save you money on interest charges if you carry a balance on your credit card.
Benefits of low interest credit cards
The benefits of low interest credit cards include:
- Lower interest rates: The primary benefit of a low interest credit card is that it charges a lower interest rate than other credit cards. This can save you money on interest charges if you carry a balance on your credit card.
- Longer grace periods: Some low interest credit cards offer longer grace periods, which is the time between when you make a purchase and when interest starts accruing on that purchase. A longer grace period can give you more time to pay off your balance without incurring interest charges.
- Lower fees: Some low interest credit cards also charge lower fees than other credit cards, such as annual fees, balance transfer fees, or foreign transaction fees. This can save you money on fees over time.
- Rewards programs: Some low interest credit cards also offer rewards programs that allow you to earn points, miles, or cash back on your purchases. While these rewards may not be as generous as those offered by premium credit cards, they can still be a valuable perk if you use your credit card regularly.
Top low interest credit cards in Canada
MBNA True Line® Mastercard®
The MBNA True Line® Mastercard® is one of the best low interest credit cards in Canada, with a low interest rate of 12.99% on purchases, balance transfers, and cash advances. It also has no annual fee and a 0% promotional interest rate on balance transfers for the first 10 months. However, it does not offer any rewards program or travel insurance.
Scotiabank Value® Visa card
The Scotiabank Value® Visa card is another great low interest credit card with an interest rate of 12.99% on purchases and cash advances, and a promotional interest rate of 0.99% on balance transfers for the first six months. It also has no annual fee and offers discounts on car rentals, hotels, and airport parking through its Visa Discounts program. However, it does not offer any rewards program or travel insurance.
Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card is a low interest credit card that also offers cash back rewards on your purchases. It has an interest rate of 12.99% on purchases and cash advances, no annual fee, and a generous rewards program that allows you to earn 2% cash back on up to three categories of your choice, and 0.5% cash back on all other purchases. However, it does not offer any promotional interest rates on balance transfers.
American Express Essential® Credit Card
The American Express Essential® Credit Card is a low interest credit card that offers a variety of benefits, including travel insurance, purchase protection
FAQ About Best Low Interest Credit Cards in Canada
What is a low-interest credit card?
A low-interest credit card is a type of credit card that offers a lower annual interest rate compared to standard credit cards. These cards are designed to help individuals save money on interest charges when carrying a balance or making purchases over time.
How can I qualify for a low-interest credit card?
Qualification criteria for low-interest credit cards vary among issuers. Generally, a good credit score and a steady income are important factors that lenders consider when approving applications for low-interest credit cards.
Are low-interest credit cards suitable for everyone?
Low-interest credit cards are particularly suitable for individuals who carry a balance on their credit cards or make frequent purchases over time. If you pay off your credit card balance in full each month, you may benefit more from other types of credit cards, such as those offering rewards or cashback.
Final Words
Choosing the best low-interest credit card in Canada is an important financial decision that can save you money in the long run. By opting for a credit card with a lower interest rate, you can reduce the burden of high-interest charges and manage your finances more effectively. We have explored some of the top options available in Canada, including the Scotiabank Value® Visa Card, MBNA True Line® Gold Mastercard®, RBC Visa Classic Low Rate Option, and CIBC Select Visa Card. Remember to consider your individual needs and financial goals when selecting a credit card, and always practice responsible credit card usage to maintain a healthy financial future.
