Best Low Interest Credit Cards in Canada

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Best Low Interest Credit Cards in Canada

It is no secret that the economy took a hard hit when COVID-19 was declared as a pandemic. In this period in time it is important for each individual to consider their financial goals. One of the most significant things to keep in mind is maintaining a good credit score. Low interest credit cards are very useful for this reason, as well as people who are unable to afford high interests.

In this article you will find ten of the best low interest credit cards for Canadians. The advantages and disadvantages of each will be discussed, as well as which types of people may benefit the most from each low interest credit card.

How do low interest credit cards work?

Low interest credit cards are usually used to buy products with borrowers monetary and thereafter paying it back in terms of the agreement.

Interest accrual starts almost immediately, with a usual grace period of around twenty one days for most credit cards. The interest increases when the cardholder does not pay on time. Canadian citizenship and being of age is required for all the below discussed low interest credit cards.

Low interest credit cards are also perfect for daily purchases and cardholders can save up to hundreds of dollars yearly. It gets paid down faster since you save on interest. While there are very little to no rewards, the low interest rates make up for it.

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How to choose the right credit card for you

There are many factors to consider when deciding on which credit card to go with. Low interest credit cards allow you to save money on interest payments. Some low interest credit cards also have rewards programs where cardholders can save on certain purchases or get rewarded points when using it. However, most do not offer any rewards.

It is also important to remember that most low interest credit cards do not offer comprehensive protection. However, the purpose of a low interest credit card is to save on interest. Individuals are able to pay back their balance way faster with low interest credit cards.

Thus, it is important to consider the fee you will pay on an annual basis when choosing a low interest credit card. Some of these low interest credit cards offer promotions when joining, which is good to utilize.

It is important to identify any hidden fees that comes along with  low interest credit cards. This can usually be found in the terms and conditions on the company offering the credit card program’s website.

The Ten Best Low Interest Credit Cards

Below follows a comparison of the ten best low interest credit cards in Canada. These low interest credit card programs offer annual interest rates as low as 10.9% with warranty and protection. However, since the aim of these credit cards on this list is to save on interest, the protections offered by companies are not as comprehensive or wide.

Most low interest credit cards on this list also do not offer reward programs, except for the HSBC +Rewards Mastercard. Most low interest credit cards listed offer little to no annual fees.

National Bank Syncro Mastercard

  • $35 Annual fee
  • No Welcome Bonus
  • 0% Rewards Rate
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1. National Bank Syncro Mastercard

The National Bank of Canada offers a low interest credit card, namely the National Bank Syncro Mastercard. While it does not have a rewards program, the purchase rate on this credit card is only 8.90%, while the interest rates for cash advances and balance transfers are 12.90%.

There is no minimum annual income that is required for Canadians to apply for this card. However, a yearly fee of $35 is required

Who can benefit the most from this credit card program?

Canadians with a good and fair credit score can benefit from this low interest credit card. The National Bank of Canada also offers warranty and purchase protection to cardholders.

Tangerine Money Back Mastercard

  • No Annual Fee
  • $100 Welcome Bonus
  • 2% Rewards Rate
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2. Tangerine Money Back Mastercard

This low interest credit card program offers a 0.5% cash back on everything you purchase and 2% on three categories. Cardholders pay no annual fees. The minimum annual income required is $12,000.

Cardholders can choose two categories from ten categories when purchasing goods to earn 2% cashback, which is received back on a monthly basis. In comparison to other cards, the Tangerine Money-Back Mastercard’s annual interest is a bit higher at 19.95%

People with an annual income of $60,000 and above qualify for the Tangerine World Mastercard which offers additional benefits. To be eligible, the applicant must not have been declared bankrupt within a period of seven years since applying for this low interest credit card.

Who can benefit the most from this credit card program?

Tangerine Money-Back Mastercard is one of top choices when it comes to low interest credit cards. It is the best option for people searching for a no fee credit card that can even give you cash back. Prospective cardholders can apply online on the website.

MBNA True Line Mastercard

  • $39 Annual fee
  • No Welcome Bonus
  • No Rewards Rate

3. MBNA True Line Mastercard

MBNA, a division of the Toronto Dominion Bank in Canada, offers low interest credit card programs to Canadian residents.

One of the benefits of choosing MBNA True Line Mastercard is that there is no annual fee applicable. Given the fact that most credit card programs have high annual fees, along with high interest rates, MBNA True Line Mastercard is truly one of the best low interest credit cards for Canadian residents.

Most credit card programs require an annual fee of around $20 to $60. It has a purchase and balance interest of 12.99%. Protection against fraud is also provided by MBNA. Cardholders are also able to send money from their credit cards to their cheque accounts.

One of the downsides is the high interest rates applicable to cash advances. The interest rate is currently 24.99%. Another downside of this credit card program is that it is not available to residents of Quebec. It is extremely simple to apply. An online application should take about 10 minutes.

MBNA True Line Mastercard is highly recommended for anyone looking for low interest credit cards.

Who can benefit the most from this credit card program?

Anyone with a good credit score can benefit from choosing the MBNA True Line Mastercard as a low interest credit credit card. There is no minimum household income requirement. However, a fair credit score is required to be approved.

BMO Preferred Rate Mastercard

  • The lowest interest rate from BMO
  • 3.99% interest rate on balance transfers for 9 months
  • $20 Annual Fee

4. BMO Preferred Rate Mastercard

Second on the list of low interest cards, is the Bank of Montreal’s BMO Preferred Rate Mastercard with an interest rate of 12.99% on all purchases and cash advances. Unlike MBNA True Line Mastercard, it has an annual fee of $20. However, the first year is completely free, meaning the annual fee is only applicable from the second year.

This low interest credit card program offers excellent interest rates on cash advances and purchases. It is much lower than other credit card programs and the first annual fee is waived. Cardholders also receive purchase protection and an extended warranty. For the first nine months, cardholders can enjoy a low interest of 3.99% on balance transfers

One of the drawbacks is that the cardholder is required to have a minimum household income of $15, 000.

Anyone who has been found bankrupt in the previous seven years from the date of application will not be issued and authorized a credit card from the Bank of Montreal. Preferred Rate Mastercard. It is also important for cardholders to note that when a payment is dishonoured, $48 will be applicable.

Who can benefit the most from this credit card program?

The people who can benefit the most from BMO Preferred Rate Mastercard are those with a less than excellent credit score (around 580 to 650). This option is one of the best for people looking for low interest credit cards with a lower than average credit score and an annual household income of $15,000.

Cardholders looking for savings on Cirque du Soleil and Las Vegas residency events will be pleased with the 15% to 20% off on certain purchases with the BMO Preferred Rate Mastercard. Online applications are possible, making it easier for prospective cardholders to apply.

CIBC Select Visa Card

  • Transfer up to 50% of your assigned credit limit
  • Get 0% interest for up to 10 months with a 1% transfer fee
  • $29 Annual Fee

5. CIBC Select Visa Card

With an interest rate of only 13.99%, the CIBC Select Visa is another top pick on our list of the best low interest credit cards for Canadians. It proves to be beneficial to individuals looking for low rates on balance transfers.

Only people who are of age with an annual household income of $15,000 and a good credit score are eligible for the CIBC Select Visa. Cardholders are also able to use this low interest credit card to transfer money to people overseas. Insurance is also included.

Currently, there is a special offer of 0% interest for a period of ten months when transferring your credit card balance.

Who can benefit the most from this credit card program?

People who want a low interest credit card and use it to buy items on an almost daily basis, will benefit the most from this credit card program. It is also ideal for Canadians who would like to send money to someone else abroad.

Applying for the CIBC Select Visa is simple and convenient. Prospective cardholders can apply online.

Home Trust Secured Visa Card

  • No Annual fee
  • Build your credit history
  • #1 secured credit card for 2022

6. Home Trust Secured Visa Card

The Home Trust Secured Visa Card is offered by the Toronto-based company, Home Trust. This low interest credit credit card is great for those just starting to build a credit history. Home Trust’s goal is to assist Canadians in reaching their financial goals.

With an interest rate of 14.90% with a $59 yearly fee, the Home Trust Secured Visa Card is one of the best low interest credit cards in Canada. Cardholders can also opt to pay no annual fee and instead choose an interest rate of 19.99%. Using the Home Trust Secured Visa Card can help people better their credit scores, unlike prepaid credit cards.

Who can benefit the most from this credit card program?

People who are just starting to build a credit history and want to choose their own credit limits will benefit from this low interest credit card program.

HSBC + Rewards Mastercard

  • Get up to $200 in the first year
  • Earn up to 35,000 points + annual fee rebate
  • Earn 2 Points for every $1 on eligible dining or entertainment

7. HSBC + Rewards Mastercard

HSBC offers one of the lowest credit card interest rates you will find in Canada with their Rewards Mastercard. The interest rate is only 11.9% with a $29 yearly fee. Balance transfers, cash advances and purchases have an interest rate of 11.9%.

HSBC +Rewards Mastercard also won creditcardGenius.ca‘s best low interest credit card for 2021, as well as HowToSaveMoney.ca‘s best low interest credit card for 2020. Cardholders can also benefit from the travel rewards and other rewards when purchasing products.

Who can benefit the most from this credit card program?

Anyone considering which low interest credit card to go with, can benefit from the HSBC +Rewards Mastercard, especially people with bad credit looking to better their score. A credit score of around 700 and above is required and there is no minimum annual income required to become a cardholder.

Cardholders can earn points. HSBC also provides protection for a period of 90 days and a one year extended warranty. On this list, this is the only option that offers rewards. Online applications are possible, making it easier for prospective cardholders to apply.

Scotiabank Value Visa Card

  • Save up to hundreds of dollars a year on interest
  • 0.99% interest on balance transfers for the first 6 months
  • $29 Annual Fee

8. Scotiabank Value Visa Card

The Scotiabank Value Visa is a good option when looking for low interest credit cards. This card offers a 12.99% interest on advances, transfers and purchases. The annual fee is $29 and the required annual income of the cardholder is $12,000.

One of the welcoming benefits of this low interest credit card program is that cardholders can enjoy the low interest rate of 0.99% on balance transfers for a period of six months. One of its drawbacks is that there are no rewards or perks. It is very simple and convenient to apply for this program. Simply go on the website and fill out an online application.

Who can benefit the most from this credit card program?

Anyone with a good credit score looking for a low interest credit card will not be disappointed in the Scotiabank Value Visa Card. While it lacks a reward program, the low interest rate is very appealing and balances can be paid down at a faster rate.

MBNA True Line Gold Mastercard

  • $39 Annual fee
  • No Welcome Bonus
  • No Rewards Rate

9. MBNA True Line Gold Mastercard

The True Line Gold Mastercard is another low interest credit card offered by MBNA. Cardholders’ annual fees are $39. The greatest benefit of this card is the low 8. 99% interest rate on purchases and balance transfers. However, cash advances have a high interest rate of 24.99%.

Any late payments of the credit card can lead up to an interest rate of 19.99% all purchases, as well as an interest rate of 21.99% on balance transfers.

Who can benefit the most from this credit card program?

Anyone looking for a low interest credit card with the ability to meet monthly payments will benefit from this card. The MBNA True Line Mastercard’s interest rate is more than half of other credit cards. In fact, it has the lowest annual percentage rate in Canada.

Desjardins Flexi Visa Card

  • No Annual Fee
  • Get up to $5k a day at 10.9% interest
  • No welcome bonus

10. Desjardins Flexi Visa Card

One of the best low interest credit card is the Desjardins Flexi Visa Card that offers an interest of only 10.9% on transfers, cash advances and balances. One of the many benefits of choosing this credit card program is the flexibility and cheap fees. Unlike most credit cards, there is no annual fee.

With the Desjardins Flexi Visa Card cardholders receive travel insurance, car rental discounts, fraud protection and identity protection. Cardholders looking for extra benefits have the option of increasing their overdraft transfer.

Who can benefit the most from this credit card program?

Anyone searching for a low interest credit card can benefit from the Desjardins Flexi Visa. Cardholders can also insure their mobile devices for up to $1,000. Cardholders can also get a certain percentage off when renting cars. Cash advances of up to $5,000 a day can be taken.

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Best Low Interest Credit Cards in Canada Conclusion

It is imperative that cardholders stick to their monthly minimum payments to avoid increased rates and bad credit scores.

The above list contains some of the best low interest credit cards in Canada that allow Canadians to save up to hundreds of dollars per year. When choosing the right low interest credit card, it is important to look at your needs.

There are also a few factors to consider before making a choice, such as each credit card program’s eligibility criteria which includes credit score and minimum annual household income.

The above list also features low interest credit cards for Canadians with poor credit scores looking to better it such as the HSBC +Rewards Mastercard. This credit card program offers some of the lowest interest rates you will find in Canada (11.9% on purchases and balance transfers).

The annual fee is only 29%, making it an excellent choice for people looking to rebuild their credit scores. The Desjardins Flexi Visa Card also offers an interest rate of only 10.9% with no annual fee.

People with no fixed annual income can choose between the National Bank Syncro Mastercard, the HSBC +Rewards Mastercard or the MBNA True Line Mastercard. Individuals just starting to build a credit card history or have a poor credit score will benefit greatly from the HSBC +Rewards Mastercard.

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FAQs about
Low Interest Credit Cards

Have a different question? Contact us today.

What is the best credit card to get in Canada?

The best credit card to get depends on the type of rewards you want and how you'll use the card. But for all-around usability and rewards we recommend the MBNA Rewards Platinum Plus® Mastercard® with $0 annual fee.

How do I choose a credit card in Canada?

Take a look at the type of spending you usally use your credit card for and consider what rewards you want to earn. Then take a look at the recommended cards and categories at Comparewise to find the best match for you.

What is the lowest interest rate credit card in Canada?

The MBNA True Line® Gold Mastercard® credit card has a low rate of 8.99% followed by the MBNA True Line® Mastercard® credit card with a rate of 12.99%.

How many credit cards should I have Canada?

Try to have a limit of five credit cards at once. If you get any more you may have trouble keeping track of your spending and paying the bills on time.

What credit score is needed for a credit card in Canada?

Credit cards are available for those with poor credit scores and limited credit history. You should try to accrue 3 years of credit history or a minimum credit score of 300 before applying for a credit card.

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