If you’re looking for a low interest credit card and wondering where to start, you’ve come to the right place. In this blog post, we will discuss the best low interest credit cards in Canada and how they can benefit you.
Many Canadians are looking for a way to reduce their monthly expenses, and a low interest credit card can help do just that. With a low interest credit card, you can achieve the benefits of a credit card at a low cost, helping you avoid the exorbitant interest payments.
While Canadians are fortunate to have several low-interest credit cards, choosing the best one is usually challenging. But in this post, we will talk about the different features of each card and how they can help you save money on your monthly payments.
So, if you’re interested in finding out more about the best low interest credit cards in Canada, keep reading!
Overview of the Best Low Interest Credit Cards in Canada
Let’s start with an overview of the best low interest credit cards in Canada with their varying annual percentage rate (APR) on purchases and cash advances.
| Credit Card | Interest on Purchase | Interest on Cash Advance |
|---|---|---|
| HSBC +Rewards Mastercard | 11.9% | 11.9% |
| Simplii Financial Cashback Visa Card | 19.99% | 22.99% |
| Capital One’s Low Rate Guaranteed Mastercard | 14.9% | 21.9% |
| American Express Essential Credit Card | 12.99% | 12.99% |
| MBNA True Line Mastercard | 12.99% | 24.99% |
| MBNA True Line Gold Mastercard | 8.99% | 8.99% |
| Desjardins’ Odyssey Visa Infinite Privilege | 10.9% | 10.9% |
| Desjardins Flexi Visa | 10.9% | 10.9% |
| Laurentian Bank’s Visa Black Reduced Rate | 12.49% | 13.49% |
Best Low Interest Credit Cards in Canada
The following is a detailed view of the current best low interest credit cards in Canada offered by different banks.
1. HSBC +Rewards Mastercard
- Annual fee: $25 (waived for the first year)
- Interest on purchases: 11.9%
- Interest on cash advances: 11.9%
- Sign-up bonus: Up to 35,000 points
- Reward on purchases: Up to 2 points on every $1 eligible purchase
- Income eligibility: N/A
The HSBC +Rewards Mastercard distinguishes itself from the competition with low interest, low annual fee and competitive sign-up bonus and rewards on purchases.
Most low interest credit cards in Canada limit their perks and benefits in exchange for the low APR. But with the HSBC +Rewards Mastercard, you will access some of the benefits of high-interest credit cards while getting a low interest rate on your purchases.
That said, you need to complete the following tasks to earn the 35,000 points welcome offer of the HSBC +Rewards Mastercard:
- Apply for the card by October 31, 2022, through this link: 5,000 points
- Spend at least $2,000 with the card within your first 6 months of card membership: 30,000 points.
For every $1 purchase with the card on dining and entertainment, you will earn 2 points. Every other purchase will earn you 1 point for every dollar.
2. Simplii Financial Cashback Visa Card
- Annual fee: None
- Interest on purchases: 19.99%
- Interest on cash advances: 22.99%
- Sign-up bonus: 10% promotional cash back and 9.99% introductory interest
- Reward on purchases: Up to 4% cash back
- Income eligibility: $15,000 minimum annual household income
The Simplii Financial Cashback Visa Card ranks as one of the best no-fee cash back credit cards in Canada.
Though the card has a 19.99% standard interest rate on purchases and 22.99% on cash advances, it has a low introductory interest on purchases of 9.99% – making it one of the top low interest credit card options for Canadians.
The competitive introductory rate lasts throughout your first six months of membership. In addition, the card offers 10% promotional cash back that lasts throughout your first four months of membership.
To earn the 10% promotional cash back, you need to spend a minimum of $500 at restaurants and bars. When the promotional cash back expires, you will earn the following rewards:
- Every $500 you spend at restaurants and bars: 4% cash back
- Your initial $15,000 purchases on grocery, drugstore and pre-authorized payments annually: 1.5% cash back
- Every other purchases: 0.5% cash back
Learn more: Simplii Financial Cashback Visa Card Review
3. Capital One’s Low Rate Guaranteed Mastercard
- Annual fee: $79
- Interest on purchases: 14.9%
- Interest on cash advances: 21.9%
- Sign-up bonus: N/A
- Reward on purchases: N/A
- Income eligibility: N/A
Capital One’s Low Rate Guaranteed Mastercard charges 14.9% interest on purchases with 21.9% interest on cash advances. This makes it more suitable for everyday purchases than using it for getting cash.
What I find more interesting about this low-interest credit card is that it offers guaranteed approval. You are guaranteed approval once you meet the following requirements:
- Reach the age of majority in your province or territory
- Had no Capital One account that was not in good standing in the previous year
- Didn’t make multiple applications for the Capital One account in the last 30 days
- Have no pending application or existing Capital One account
Besides the above requirements, your credit history will also play a critical role in approving your application.
That said, the Capital One’s Low Rate Guaranteed Mastercard is ahead of other low-interest credit cards out there due to its comprehensive insurance and protection, such as:
- Purchase Assurance
- Extended Warranty
- Zero Liability protection
- Price Protection Service
- Travel Assistance
- Common Carrier Travel Accident Insurance
- Car Rental Collision/Loss Damage Waiver
4. American Express Essential Credit Card
- Annual fee: None
- Interest on purchases: 12.99%
- Interest on cash advances: 12.99%
- Sign-up bonus: N/A
- Reward on purchases: N/A
- Income eligibility: N/A
The American Express Essential Credit Card is a no-fee credit card that charges a low interest of 12.99% on purchases and cash advances.
Even though the card doesn’t offer rewards, you can save more with the low interest rates. The only thing you want to avoid while using this card is missed payments.
You will be charged 23.99/26.99% interest on every missed payment with the card.
What I like about the American Express Essential Credit Card are the exclusive benefits and experiences it comes with like other AMEX cards. This includes Front Of The Line Reserved tickets, virtual events and entertainment tickets.
Besides all this, the American Express Essential Credit Card comes with comprehensive insurance and protection, such as:
- $100,000 Travel Accident Insurance
- Buyer’s Assurance Protection Plan
- Purchase Protection Plan
- Fraud Protection Guarantee
5. MBNA True Line Mastercard
- Annual fee: $0
- Interest on purchases: 12.99%
- Interest on cash advances: 24.99%
- Sign-up bonus: 0% introductory balance transfer interest rate for 12 months
- Reward on purchases: N/A
- Income eligibility: N/A
The MBNA True Line Mastercard is both a no-fee and low-interest credit card with competitive offers.
While the card charges above-average 24.99% interest on cash advances, it charges a low interest of 12.99% on purchases.
In addition, the card offers a 0% introductory balance transfer interest rate for 12 months. However, you need to execute the balance transfer within your initial 90 days of membership to qualify for this competitive offer.
When the promo expires, you will be charged 12.99% on balance transfers. This is way lower than the average balance transfer interest rate out there.
What I also find interesting about the MBNA True Line Mastercard is that it allows you to add up to 9 authorized users for free.
Finally, the card offers access to special discounts such as 10% off on car rentals across Canada and the US via Avis and Budget locations.
6. MBNA True Line Gold Mastercard
- Annual fee: $39
- Interest on purchases: 8.99%
- Interest on cash advances: 8.99%
- Sign-up bonus: N/A
- Reward on purchases: N/A
- Income eligibility: N/A
The MBNA True Line Gold Mastercard is another leading low-interest credit card that charges a $39 annual fee.
Like the MBNA True Line Mastercard, the MBNA True Line Gold Mastercard also allows you to add up to 9 authorized users without no incurring an additional annual fee for each.
While the MBNA True Line Gold Mastercard has no welcome offer and rewards on purchases, it offers access to special discounts and more insurance coverage and support, such as:
- Purchase Assurance
- Purchase Protection
- Extended Warranty
- Trip Assistance and Legal Assistance
7. Desjardins’ Odyssey Visa Infinite Privilege
- Annual fee: $295 for members and $395 for non-members
- Interest on purchases: 10.9%
- Interest on cash advances: 10.9%
- Sign-up bonus: N/A
- Reward on purchases: Up to 4% bonusdollars rewards on purchases
- Income eligibility: $150,000 minimum personal annual income, $200,000 minimum annual household income or $400,000 assets under management
Desjardins is a Québec-based cooperative financial group that is spread across more than 140 locations in Canada.
As the largest credit unions in Canada, Desjardins offers its members dividends and low-cost financial solutions such as Desjardins’ Odyssey Visa Infinite Privilege.
With this card, members are charged a $295 annual fee while non-members are charged $395. As a member, the fee is worth it considering the benefits that come with joining Desjardins.
However, if you’re just after the Desjardins’ Odyssey Visa Infinite Privilege card, you may find the card costly despite the 9.9% interest on purchases and cash advances.
Besides the high annual fee, the card charges 19.9% on missed payments. While members can add authorized users at no cost, non-members are charged $95 per authorized user.
That being said, the Desjardins’ Odyssey Visa Infinite Privilege card offers competitive bonusdollars for purchases in the following categories:
- Restaurants, public transportation, and entertainment: 4% bonusdollars
- Groceries and travel = 3% bonusdollars
- Other purchases = 1.75% bonusdollars
In addition to special discounts and access to Desjardins Odyssey lounge at Montreal-Trudeau airport, the card also comes with comprehensive insurance and protection, such as:
- Travel insurance
- Auto Rental Collision/Loss Damage Insurance
- Mobile device insurance
- Purchase Protection and Extended Warranty
- Zero Liability policy
8. Desjardins Flexi Visa
- Annual fee: None
- Interest on purchases: 10.9%
- Interest on cash advances: 10.9%
- Sign-up bonus: N/A
- Reward on purchases: N/A
- Income eligibility: N/A
Unlike the Desjardins’ Odyssey Visa Infinite Privilege, the Desjardins Flexi Visa card has no annual fee and doesn’t discriminate between members and nonmembers.
Despite that, the Desjardins Flexi Visa charges a relatively low interest rate of 10.9% on purchases and cash advances. Also, all card users can add authorized users for free.
While this card doesn’t offer rewards on purchases, it offers access to special discounts and comprehensive insurance, such as:
- Travel insurance
- Mobile device insurance
- Purchase Protection and Extended Warranty
- Zero Liability policy
- Desjardins Identify Protection
9. Laurentian Bank’s Visa Black Reduced Rate
- Annual fee: $30
- Interest on purchases: 12.49%
- Interest on cash advances: 13.49%
- Sign-up bonus: N/A
- Reward on purchases: Up to 11,000 bonus points
- Income eligibility: N/A
The Laurentian Bank’s Visa Black Reduced Rate credit card is another best low interest credit card in Canada that charges 12.49% APR.
While the card comes with a $30 annual fee, it makes up for it with access to free additional cards and unique coverage, known as Assur-payment.
This optional coverage consists of insurance, and assistance on health and wellness. Some of the insurance coverage includes job loss, disability and life. With such coverage, you can use the credit card with confidence knowing that you and your loved ones are covered in case of emergency.
Besides insurance coverage, the Assur-payment also offers access to personalized advice on emotional loss, grief, psychological, legal and budgeting.
Best Low-interest Credit Cards Promotions
While the credit cards offering covered above have a standard low interest on purchases, there are also several cards with promotional offers in the form of an introductory low-interest.
Usually, the low-interest will lasts for a couple of months, 6 to 9 months in most instances. The APR then resets to an higher rate after the promo period ends.
Some of the top best low-interest credit cards in Canada at the moment are shown in the table below:
| Credit Card | Promo APR | Standard APR | Promo Period |
|---|---|---|---|
| Tangerine Money Back Credit Card | 1.95% | 19.95% | 6 months |
| Tangerine World MasterCard | 1.95% | 19.95% | 6 months |
| Simplii Cashback Visa Card | 9.99% | 19.99% | 6 months |
The Tangerine Money-back credit card and Tangerine World MasterCard have the best low-interest credit cards promotions in Canada. Not only do they have a lower APR than the standard APRs for the other cards covered above, they also offer a 10% cash back bonus on purchases within the first 2 months.
Both Tangerine credit cards have a lot of features in common. A few major difference between the two is the minimum income requirement and the benefits. Read this Tangerine World Mastercard vs Tangerine Money-Back Comparison to learn more.
Overall, you’ll be saving a lot in interest within the first 6 months of membership, while earning a competitive cash back on your purchases.
Learn more about the Tangerine Credit Card Promotions or read the detailed review of the cards below.
Best Low-interest Credit Cards From Big Banks
While the five big banks vary by their market capitalization, products and services, they all offer low-interest credit cards.
Below is an overview of the best low interest credit cards from some of the big banks in Canada.
Best RBC Low Interest Credit Cards
The Royal Bank of Canada (RBC) low-interest credit cards come with comprehensive insurance, special discounts and rewards on purchases. The following is a highlight of their key features.
10. RBC RateAdvantage Visa
| Annual fee | None |
| Annual interest | Prime + 4.99% – 8.99% on purchases & Prime + 4.99% – 8.99% on cash advances |
| Welcome offer | N/A |
| Rewards | 50 Be Well points on all eligible $1 purchases at Rexall |
| Special discounts | 3¢/L discount on fuel at Petro-Canada and free delivery from DoorDash for up to 3 months |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
11. RBC Visa Classic Low Rate Option
| Annual fee | $20 |
| Annual interest | 12.99% on purchases & cash advances |
| Welcome offer | N/A |
| Rewards | 50 Be Well points on all eligible $1 purchases at Rexall |
| Special discounts | 3¢/L discount on fuel at Petro-Canada and free delivery from DoorDash for up to 3 months |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
12. RBC Visa CreditLine for Small Business
| Annual fee | None |
| Annual interest | Prime + 2.9% to 11.9 on purchases |
| Welcome offer | N/A |
| Rewards | 1 RBC Rewards point for every $2 purchase |
| Special discounts | 3¢/L discount on fuel at Petro-Canada and free delivery from DoorDash for up to 3 months |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
Best TD Low Interest Credit Cards
Toronto Dominion Bank (TD) offers low interest credit cards with competitive rewards, welcome bonus and special discounts as highlighted below.
13. TD Emerald Flex Rate Visa Card
| Annual fee | $25 |
| Annual interest | TD Prime + 4.50% – 12.75% on purchases and TD Prime + 4.50% – 12.75% on cash advances |
| Welcome offer | N/A |
| Rewards | 50% additional Stars at partner Starbucks stores |
| Special discounts | 10% discount on car rentals in Canada and the US |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
14. TD Business Select Rate Visa Card
| Annual fee | None |
| Annual interest | 11.99% on purchases & cash advances. Pay a $49 annual fee to lower the purchases and cash advances interest to 8.99% |
| Welcome offer | N/A |
| Rewards | 50% additional Stars at partner Starbucks stores |
| Special discounts | Up to 25% discounts on business purchases and 10% discounts on car rentals in Canada and the US |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
15. TD Aeroplan Visa Business Card
| Annual fee | $149 (waived in the first year for the primary cardholder and two additional authorized users) |
| Annual interest | 14.99% on purchases & 22.99% on cash advances |
| Welcome offer | Up to 60,000 Aeroplan Points |
| Rewards | 2 points for every $1 purchase with Air Canada. 1.5 points for every $1 travel purchase. 1 point for every other purchase. 50% additional points at Starbucks |
| Special discounts | Up to 25% discounts for business purchases |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
Best BMO Low Interest Credit Cards
Unlike most of the other big banks in Canada, the Bank of Montreal (BMO) offers both low interest credit cards and prepaid cards. Take a look below.
16. BMO Preferred Rate Mastercard
| Annual fee | $20 (waived for the first year) |
| Annual interest | 12.99% on purchases & 15.99% on cash advances |
| Welcome offer | 0.99% introductory interest on balance transfers for the initial 9 months of card membership |
| Rewards | N/A |
| Special discounts | N/A |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
17. BMO Prepaid Travel Mastercard
| Annual fee | $6.95 |
| Annual interest | None |
| Welcome offer | N/A |
| Rewards | N/A |
| Special discounts | N/A |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
Best National Bank Low Interest Credit Cards
As of the time of writing, National Bank has only one low interest credit card known as Syncro Mastercard. Below is an overview of the card.
18. National Bank Syncro Mastercard
| Annual fee | $35 |
| Annual interest | Prime rate + 4% or 8.90% min. on purchases & Prime rate + 8% or 12.90% min. on cash advances |
| Welcome offer | N/A |
| Rewards | N/A |
| Special discounts | N/A |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
Best Scotiabank Low Interest Credit Cards
The Bank of Nova Scotia (Scotiabank) also offers one low interest credit card as of the time of writing. The following are the key features of the card:
19. Scotiabank Value Visa Card
| Annual fee | $29 (waived in the first year) |
| Annual interest | 12.99% on purchases & 12.99% on cash advances |
| Welcome offer | 0.00% introductory cash advance interest rate for the initial six months of card membership |
| Rewards | N/A |
| Special discounts | N/A |
| Comprehensive insurance | Yes |
| Income eligibility | N/A |
RELATED: Best Scotiabank Credit Cards
Best CIBC Low Interest Credit Cards
Finally, the Canadian Imperial Bank of Commerce (CIBC) offers two low-interest credit cards with competitive offers as highlighted below.
20. CIBC Select Visa Card For Business
| Annual fee | $29 (rebated for the first year) |
| Annual interest | 13.99% on purchases and cash advances |
| Welcome offer | 0% balance transfers introductory interest rate for the initial 10 months of membership |
| Rewards | N/A |
| Special discounts | 10 cents discount per litre on gas and $0 foreign transfer fee |
| Comprehensive insurance | Yes |
| Income eligibility | $15,000 minimum annual income household |
21. CIBC bizline Visa Card
| Annual fee | None |
| Annual interest | 1.5% + CIBC Prime on purchases & 1.5% + CIBC Prime on cash advances |
| Welcome offer | N/A |
| Rewards | N/A |
| Special discounts | N/A |
| Comprehensive insurance | N/A |
| Income eligibility | $35,000 minimum personal annual income |
How to Choose the Best Low Interest Credit Card in Canada
It could be overwhelming to make a choice from the above competitive low-interest credit cards in Canada. But don’t panic!
Consider the following factors when looking for the perfect low-interest credit card for your needs:
- Your needs: Each of the above low-interest credit cards is tailored for different needs. By identifying your needs, you can easily decide whether to go with a no-fee, cashback, reward or travel low-interest card.
- Interest rates: It will be more cost-saving to choose a credit card with the lowest interest on purchases, cash advances and balance transfers.
- Annual fee: You will likely save more by choosing a low-interest card with zero or low annual fees.
- Credit limit: Choose a low-interest credit card with a limit that suits your spending habits and income level.
- Income eligibility: Some of the above credit cards require minimum annual personal/household income to qualify.
With these factors, you can now make an informed decision on choosing the best low interest credit card for your needs in Canada.
Some FAQs on the Best Low Interest Credit Cards in Canada
A low-interest credit card in Canada refers to any card that has below average (19.99% – 24.99%) annual percentage rate (APR). This low interest rate could apply to purchases, cash advances and balance transfers.
Currently, the CIBC bizline Visa Card For Business has the lowest rate in Canada with 1.5% + CIBC Prime on purchases & 1.5% + CIBC Prime on cash advances.
The MBNA True Line Gold Mastercard ranks second with 8.99% APR on purchases and cash advances.
A low interest credit card is good because it helps you access the basic features of a credit card at low rates. This makes it easier to pay off your credit card balances fast.
Most low interest credit cards have limited benefits and exclusive offers compared to average/high-interest credit cards. So if you’re looking to access advanced benefits and features, you may find a low interest credit card less suitable.
Over to You
Low-interest credit cards are a cost-saving alternative to high-interest credit cards in Canada. With varying options to choose from, you can combine different low-interest credit cards to take advantage of their benefits.
While you can’t go wrong with any of the above low-interest credit cards, it’s essential to factor in your needs and situation to make the best selection.
Before leaving, kindly share your thoughts in the comment about the low-interest credit card you’re going with.
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