Most credit cards combine convenience with great rewards for cardholders. However, if you aren't consistent with paying your credit card bills, you can incur high-interest charges. To avoid this, Canadians turn to low-interest credit cards.
As the name suggests, a low-interest credit card offers cardholders a lower interest rate. Most credit cards have an interest rate of 19.99%. With a low-interest credit card, you can get a rate as low as 4.99%.
A low-interest credit card will save you hundreds on interest charges. So it’s convenient for anyone who carries a credit card balance from month to month.
Before getting a low-interest credit card, weigh the benefits against the drawbacks.
Not every low-interest credit card in the market offers a good deal. Follow these pointers when choosing a card.
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Anyone who can’t make consistent monthly payments on a credit card should get a low-interest credit card. Also, if you have high credit card debt, this card can be handy. It will save you hundreds of dollars in interest.
You can also pay your credit card debt off sooner. This is because most of your monthly payments will go towards paying off your balance rather than interest.
Yes. Regular credit cards charge interest between 19.99% and 22.99%. A low-interest credit card charges interest of 4.99% to 12.99%. This means you save up to 10% in interest.
The interest rate can go as low as 2%. However, this rate may only be for a limited time. Make sure to check the card’s details thoroughly before applying.
You can use your low-interest credit card for everyday purchases and emergency expenses. Since the interest rate is low, you will pay less interest than you would with a standard credit card. You should also use it to perform balance transfers. If you’re interested in doing this, make sure your card has favourable balance transfer rates.