10 Best Low Interest Credit Cards in Canada (October, 2026)

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.

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 10 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.

1. Scotiabank Value Visa Card

The Scotiabank Value Visa is a good option when looking for low interest credit cards. This card offers a 13.99% 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 nine 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 fair 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.

2. KOHO

KOHO is often described as a “credit-card alternative” rather than a traditional credit card, and its biggest appeal is that it helps users avoid the high interest charges that typically come with credit products. In Canada, standard credit cards commonly charge around 19.99%–23.99% APR on carried balances, meaning debt can grow quickly if you don’t pay in full each month. (KOHO) KOHO positions itself differently by not relying on revolving credit in the same way, which removes that high-interest borrowing cycle altogether.

Instead of charging interest on a balance like a normal credit card, KOHO operates primarily as a prepaid Mastercard. That means you load your own money onto the account and spend from that balance. Because you’re not borrowing from a credit line, there is no traditional purchase interest or compounding debt—so you don’t get stuck paying 20%+ APR on unpaid balances. This structure is a key reason many people use KOHO as a budgeting tool or as a safer alternative to credit cards when they want to avoid interest entirely.

KOHO also emphasizes financial flexibility and cost control rather than lending. While some plans may include perks like cash back or savings interest on your balance, the core idea remains the same: you’re spending your own money, not borrowing it at a high rate. This makes it especially appealing for people trying to avoid credit card debt, reduce financial stress, or rebuild habits around spending without worrying about accumulating interest charges.

Overall, the “low interest” aspect of KOHO is really about eliminating credit card-style interest altogether rather than offering a reduced APR. It’s designed for users who want the convenience of card payments without the risk of expensive interest piling up over time.

3. Wealthsimple

Wealthsimple’s credit card is positioned more like a modern low-interest (and often “pay-in-full encouraged”) premium card, rather than a product designed to profit from carrying debt. Like most Canadian credit cards, it still technically has an APR on balances—around 20.99% on purchases and 22.99% on cash advances—but the key selling point is that it’s designed to help users avoid ever paying that interest in the first place. (Wealthsimple Help Centre)

The “low interest” appeal comes less from having a dramatically lower rate than competitors, and more from how the product is structured. Wealthsimple strongly encourages responsible use: if you pay your statement balance in full each month, you benefit from the card without paying any interest at all, thanks to the standard interest-free grace period on purchases. In practice, this means the effective interest cost for disciplined users is $0, even though the posted APR exists in the background. (Wealthsimple)

Where Wealthsimple stands out is in how it pairs the credit card with a broader financial ecosystem (cash accounts, investing, automated payments). The design nudges users toward budgeting and full repayment rather than revolving debt. That matters because most credit card interest charges come from carrying balances month to month—something Wealthsimple’s product messaging actively tries to reduce.

Overall, the “low interest” story with the Wealthsimple credit card is really about avoiding interest entirely through disciplined use, rather than offering a uniquely low APR. For users who consistently pay on time, it can function as a high-reward card without the typical cost of borrowing that often comes with traditional credit cards.

4. Neo Mastercard

The Neo Mastercard is a popular Canadian credit card that stands out more for its fee-free structure and spending control features than for traditional borrowing costs. Like most credit cards in Canada, it does carry a standard interest rate on unpaid balances—typically around 19.99% to 29.99% on purchases, with higher rates for cash advances. This means that if you carry a balance, interest can still become expensive, similar to other mainstream cards.

Where Neo positions itself differently is in how it encourages users to avoid ever paying that interest in the first place. The card is designed as a pay-in-full, rewards-focused product, where users benefit most when they clear their statement balance each month. If you do that, you stay within the interest-free grace period on purchases and effectively pay 0% interest on everyday spending, despite the high APR existing in the background. This makes it appealing for people who want the convenience of a credit card without relying on borrowing.

Neo also leans heavily into budgeting and real-time spending controls through its app, which helps reduce the likelihood of carrying debt month to month. Features like instant transaction tracking and cashback rewards at partner merchants reinforce the idea that the card is meant for active money management rather than long-term borrowing. In that sense, its “low interest” appeal is really about reducing the chance of interest charges, rather than offering a uniquely low rate compared to other Canadian cards.

Overall, the Neo Mastercard isn’t a low-interest card in the traditional sense, but it is designed to help users avoid interest entirely through disciplined use. For people who pay their balance in full and want a no-fee card with rewards and digital controls, it can be an effective way to use credit without the cost of revolving interest.

5. 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.

6. Simplii Cash Back Visa Card

The Simplii Cash Back Visa card is a straightforward Canadian credit card that combines rewards with a fairly standard credit structure, but its real value comes from how it helps users avoid interest entirely through responsible repayment habits. Like most credit cards in Canada, it carries a purchase interest rate of about 21.99% and a cash advance rate of 22.99%, which means carrying a balance can quickly become expensive if it’s not paid off on time.

The key “low interest” angle isn’t that Simplii offers a discounted rate—it’s that the card includes a typical interest-free grace period of at least 21 days on purchases. If you pay your full statement balance by the due date, you don’t pay any interest on those purchases at all. This makes it effectively a 0% interest card for everyday spending, as long as it’s used as intended: for monthly spending that gets fully paid off rather than revolving debt.

Where Simplii stands out is in how clearly it encourages this pay-in-full behaviour. The card is fee-free and designed for simple everyday use, which makes it appealing for people who want cash back rewards without the complexity or risk of high-cost borrowing. Because there’s no annual fee and no need to “optimize” tiers or premium features, it’s easier for users to stay disciplined and avoid carrying a balance.

Overall, the Simplii Cash Back Visa isn’t a low-interest credit card in the sense of offering a reduced APR. Instead, its advantage is that it supports a low-cost outcome—zero interest—when used properly. For Canadians who consistently pay off their balance each month, it can function as a reliable rewards card without the financial penalty of credit card debt.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

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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