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MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial workforce of skilled journalists works intently with main private finance consultants in Canada. That will help you discover the perfect monetary merchandise, we examine the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Be taught extra about our promoting and trusted companions.
Canada’s finest low-interest playing cards
Should you carry a steadiness in your bank card, or if you happen to count on to tackle debt that may take a while to repay, you would possibly wish to take into account a low-interest bank card. Whereas most common bank cards cost round 20% in curiosity, the playing cards listed right here supply charges that may be half that or much less. Some playing cards even include enticing steadiness switch promotions that may let you pay down debt at a drastically decreased price for a restricted time. Should you’re seeking to see which one has the perfect charges, perks and promotions, learn on for our record of the perfect low-interest bank cards in Canada.
At a look: The MBNA True Line Gold Mastercard has an everyday buy rate of interest of 8.99%—that’s lower than half of what’s on a typical bank card. Plus, the $39 annual payment is manageable.
- Annual payment: $39
- Rate of interest: 8.99% on purchases, 24.99% on money advances, 8.99% on steadiness transfers
- Welcome supply: No welcome supply.
- Further advantages: Financial savings with Price range and Avis automobile leases; safety in opposition to fraudulent fees; buy safety and prolonged guarantee.
- Annual revenue requirement: None listed
Execs
- Rise up to 9 approved customers free of charge.
- While you lease a automobile from Price range or Avis, you’ll save a minimal of 10% off the bottom charges.
Cons
- This bank card doesn’t supply a lot in the best way of perks and advantages, and it doesn’t have factors or money again rewards.
- The acquisition rate of interest for Quebec residents is 10.99%—which is increased than the speed supplied to residents of different provinces and territories. Nevertheless, this card continues to be the the bottom price MBNA bank card out there to Quebecers.
Flexi Visa
At a look: The Flexi Visa from Desjardins credit score union presents a low 10.90% rate of interest. Plus it has perks like restricted journey insurance coverage, as much as $1,000 in new cell system insurance coverage, and the power to pay for bigger purchases in month-to-month instalments.
- Annual payment: $0
- Rate of interest: 10.90% on purchases, 10.90% on money advances
- Welcome supply: None
- Further advantages: Get a second credit score restrict in your card by Desjardins’ Accord D financing; three days of journey insurance coverage; new cell system insurance coverage; as much as a 15% low cost at Hertz automobile rental and as much as a ten% low cost at Thrifty and Greenback automobile rental areas; buy safety and prolonged guarantee.
- Annual revenue requirement: None
Execs
- It comes with journey insurance coverage protection that features emergency medical, journey cancellation and misplaced or broken baggage.
- Use this card to purchase a brand new cell system, and also you rise up to $1,000 to cowl loss, theft, injury or mechanical failure.
- Entry to Accord D by Desjardins, which can get you a fast approval for as much as $50,0000 in financing.
Cons
- Whereas a professional, the restricted journey insurance coverage solely covers as much as the primary three days of your journey. In case you are away for for longer, you’ll want to purchase further insurance coverage.
- The rate of interest will not be the bottom on this record.
HSBC +Rewards Mastercard*
At a look: The HSBC +Rewards Mastercard presents a low 11.9% rate of interest, plus the power to earn HSBC factors that you would be able to redeem for journey, merchandise and present playing cards—or you’ll be able to apply them to your HSBC mortgage, bank card or financial savings account. Should you’re searching for a low-interest bank card that additionally lets you gather rewards factors, it is a good choice.
- Annual payment: $25 (waived for the primary yr)
- Rate of interest: 11.9% on purchases, 11.9% on money advances, 11.9% on steadiness transfers
- Welcome supply: You possibly can earn as much as $200 in complete worth for the primary yr! Should apply by Aug 31, 2023. Circumstances apply.
- Further advantages: Buy safety
- Annual revenue requirement: None listed
Execs
- The welcome supply has a worth of as much as $200.
- Earn HSBC Rewards once you use this bank card. You’ll get 2 factors per $1 spent on eligible eating or leisure purchases and 1 level per $1 on every little thing else.
Cons
- Doesn’t embrace any journey insurance coverage or different perks.
- The 11.9% rate of interest will not be the bottom round.
At a look: This low-interest card from MBNA will get you lots of the identical perks because the MBNA True Line Gold Mastercard—additionally on this record—with barely increased rates of interest. The benefit of this card is that it comes with no annual payment and a prolonged no-interest steadiness switch.
Execs
- The promotional steadiness switch price of 0% is in impact for a full yr, which supplies you a superb period of time to pay down excellent debt.
- Add as much as 9 approved customers to the account free of charge (relying on which compensation plan you choose on your buy).
Cons
- Doesn’t embrace insurance coverage or different perks and advantages.
- There’s no annual payment, however you’ll pay barely increased rates of interest than with the comparable MBNA True Line Gold Mastercard.
At a look: The one American Categorical card on this record, this no-annual-fee Important bank card presents a low 12.99% rate of interest. It additionally comes with Amex-related perks like Entrance-of-the-Line experiences, eating and leisure, and particular presents.
- Annual payment: $25
- Rate of interest: 12.99% on purchases, 12.99% on money advances, % on steadiness transfers
- Welcome supply: None
- Further advantages: Entry to Amex Entrance-of-the-Line presale and reserved tickets, in addition to particular cardholder presents, eating, retail and leisure experiences; as much as $100,000 in demise and dismemberment journey insurance coverage; entry to Amex’s Plan It Installment Program.
- Annual revenue requirement: $15,000
- Observe: Should you don’t make your minimal month-to-month funds on time, the acquisition rate of interest ranges from to 24.99%—26.99%
Execs:
- American Categorical playing cards give cardholders entry to presale tickets, unique occasions and curated eating and leisure experiences.
- It additionally presents Plan It, which lets you repay bigger purchases in installments for a set month-to-month payment, which relies which compensation plan you choose on your buy.
Cons:
- The included journey insurance coverage is restricted to as much as $100,000 of unintended demise and dismemberment protection.
- Doesn’t embrace as many extras of different bank cards, resembling these finest journey insurance coverage bank cards.
At a look: With a really cheap $29 annual payment and a 13.99% rate of interest, the BMO Most popular Fee Mastercard will enchantment to those that wish to stick to a giant financial institution—notably present BMO clients. The welcome supply sweetens the pot with a 0.99% promotional rate of interest on steadiness transfers for 9 months and a first-year payment waiver.
- Annual payment: $29 (waived for the primary yr)
- Rate of interest: 13.99% on purchases, 15.99% on money advances, 15.99% on steadiness transfers
- Welcome supply: You possibly can earn a 0.99% introductory rate of interest on Stability Transfers for 9 months with a 2% switch payment and have the $29 annual payment waived for the primary yr.
- Further advantages: Prolonged guarantee and buy safety
- Annual revenue requirement: $15,000 (private or family)
Execs:
- The promotional supply offers you a 0.99% balance-transfer rate of interest for 9 months and waves the annual payment on your first yr.
- Get a BMO Efficiency chequing account, and also you’ll by no means should pay the annual payment for the BMO Most popular Fee Mastercard.
- Add one other cardholder free of charge.
Cons:
- This bank card doesn’t supply insurance coverage, rewards or different extras.
- The steadiness switch promotion runs for 9 months, which isn’t the longest supply amongst playing cards on this record.
At a look: In contrast to most bank cards, the Nationwide Financial institution Synchro Mastercard comes with a variable rate of interest. You’ll pay an rate of interest of 4% plus the financial institution’s prime price (or a minimal of 11.2%) on purchases, 8% + prime (or a minimal of 15.2%) on money advances, 8% + prime (or a minimal of 15.2%) on steadiness transfers. The Synchro bank card has the advantage of a decrease rate of interest than different playing cards, but it surely does carry the danger that your rate of interest may rise sooner or later.
- Annual payment: $35
- Welcome supply: Lengthen the producer’s guarantee interval as much as twice on most bank card purchases
- Rate of interest: 4% + prime (or a minimal of 11.2%) on purchases, 8% + prime (or a minimal of 15.2%) on money advances, 8% + prime (or a minimal of 15.2%) on steadiness transfers
- Further advantages: Entry to Mastercard Priceless Cities program; buy safety and prolonged guarantee
Execs:
- The minimal rates of interest of 11.2%) for purchases and eight% + prime (or a minimal of 15.2%) on money advances, 8% + prime (or a minimal of 15.2%) on steadiness transfers are very aggressive.
Cons:
- Whereas the enchantment of variable price playing cards comes from the potential to snag the perfect charges on the bank card market, the minimal charges supplied by this card undercut the bottom charges of different playing cards on this record by solely 0.09%.
Our methodology: How we decide the perfect playing cards
The MoneySense editorial workforce selects the perfect bank cards by assessing the worth they supply to Canadians throughout varied classes. Our greatest low-interest bank cards rating relies on an in depth record of card particulars and options, together with rates of interest, annual charges and welcome presents. We now have additionally thought of the professionals and cons of every card that can assist you decide which of them finest fit your monetary wants. Our rankings are an unbiased supply of data for Canadians. The addition of hyperlinks from affiliate companions has no bearing on the outcomes. Learn extra about how MoneySense makes cash.
Continuously requested questions
It’s tempting to decide on bank cards that supply rewards or money again, however these playing cards are actually solely value utilizing in case you have the power to repay your bank card in full each month. In any other case, you’ll rack up curiosity fees that far outpace the worth of your rewards. Take the identical instance above: $1,000 in debt on a bank card with a 19.99% APR will get you round 0.0548% (19.99%/365), or simply over $0.54, in curiosity fees daily.
Should you go along with a low-interest bank card, you’ll save massive on the debt you’re attempting to repay. Some playing cards go as little as 8.99%. For instance, a $1,000 debt will price you round $0.24 per day (8.99%/365). The low APR will greater than make up for not incomes rewards. With much less of your funds going to curiosity, you’ll be able to truly pay down debt. After that, the cash is yours to spend on that dreamed-of trip or one other purpose.
Most bank cards supply a set rate of interest, that means that there’s a single, unchanging share charged in opposition to your purchases. With a variable price create card, then again, the speed you might be charged on unpaid balances can change based mostly on a couple of elements.
Usually, the speed is tied to an index (often the prime price), which fluctuates, with a further fastened share on prime. For instance, a card would possibly cost the financial institution’s prime price plus 5%. Additionally, your credit score rating performs a job in figuring out how low of a price you will get.
This would possibly sound sophisticated, however there’s a easy cause to contemplate a variable price card: In case you have a superb credit score rating, you possibly can land a number of the lowest charges out there within the bank card market. Nevertheless, if you happen to don’t have a terrific credit score rating, you wish to hold issues easy or want a card that additionally comes with a terrific steadiness switch promotion, it’s possible you’ll wish to take into account one with a set price.