Bank card rates of interest aren’t all the identical. For those who carry a steadiness, or in the event you count on to tackle debt that can take a while to repay, you would possibly wish to take into account a low-interest bank card. The financial savings might be substantial: whereas most common bank cards cost round 20% in curiosity, the playing cards listed beneath provide charges that may be half that, or much less.
Bank card comparability software
Examine your choices with our interactive software and get a way of how a lot you would save on curiosity funds relying on the scale of your steadiness.
Why belief us
MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial staff of educated journalists works carefully with main private finance specialists in Canada. That can assist you discover the most effective monetary merchandise, we evaluate the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Study extra about our advertising and trusted partners.
Why low-interest playing cards are a great choice proper now
A brand new report suggests an rising variety of Canadians are seeing their bank card balances balloon because the cost-of-living disaster and better rates of interest eat into family budgets. A TransUnion report printed Tuesday mentioned the variety of Canadians paying solely the minimal month-to-month quantity on their bank card rose eight foundation factors to 1.3% within the first quarter in contrast with final 12 months.
Learn the complete article: “Canadian consumer debt: How we’re paying for our credit cards”
Finest low APR bank cards, in additional element
At a look: The MBNA True Line Gold Mastercard has a daily buy rate of interest of 10.99%—that’s round half of what’s on a typical bank card. Plus, the $39 annual price is manageable.
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MBNA True Line Gold Mastercard
Annual price: $39
Low rate of interest: 10.99%
Welcome provide: This card doesn’t have a welcome provide at the moment.
Card particulars
| Rates of interest | 24.99% on money advances, 13.99% on steadiness transfers |
| Earnings required | None specified |
| Credit score rating | 660 or increased |
At a look: The Flexi Visa from Desjardins credit score union provides a low 10.90% rate of interest. Plus it has perks like restricted journey insurance coverage, as much as $1,000 in new cell machine insurance coverage, and the flexibility to pay for bigger purchases in month-to-month instalments.
Flexi Visa
Annual price: $0
Low rates of interest: 10.90% on purchases and 12.90% on money advances
Card particulars
| Rates of interest | 10.90% on purchases and 12.90% on money advances |
| Earnings required | Not specified |
| Credit score rating | Not specified |
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 listing—with barely increased rates of interest. The benefit of this card is that it comes with no annual price and a prolonged no-interest steadiness switch.
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MBNA True Line Mastercard
Annual price: $0
Low rate of interest: 12.99%
Stability switch provide: earn a 0% promotional annual rate of interest (“AIR”) for 12 months on steadiness transfers accomplished inside 90 days of account opening, with a 3% switch price. This provide isn’t accessible for residents of Quebec.
Card particulars
| Rates of interest | 24.99% on money advances, 17.99% on steadiness transfers |
| Earnings required | None specified |
| Credit score rating | 660 or increased |
At a look: The one American Categorical card on this listing, this no-annual-fee Important bank card provides 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 provides.
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American Categorical Important Card
Annual price: Annual price: $25
Low rate of interest: 12.99% on purchases
Welcome provide: None
Card particulars
| Rates of interest | 12.99% on money advances |
| Earnings required | $15,000 per 12 months |
| Credit score rating | 725 or increased |
At a look: With a really cheap $29 annual price and a 13.99% rate of interest, the BMO Most well-liked Price Mastercard will enchantment to those that wish to follow a giant financial institution—significantly present BMO clients. The welcome provide sweetens the pot.
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BMO Most well-liked Price Mastercard
Annual price: $29
Low rate of interest: 13.99% on purchases
Welcome provide: get a 0.99% introductory rate of interest on steadiness transfers for 9 months with a 2% switch price
Card particulars
| Rates of interest | 15.99% on money advances, 15.99% on steadiness transfers |
| Earnings required | $15,000 (private or family) |
| Credit score rating | 660 or increased |
At a look: In contrast to most bank cards, the Nationwide Financial institution Synchro Mastercard comes with a variable interest rate. You’ll pay an rate of interest of 4% plus the financial institution’s prime charge (or 10.45%) on purchases. The Synchro bank card has the good thing about a decrease rate of interest than different playing cards, nevertheless it does carry the chance that your rate of interest may rise sooner or later.
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Nationwide Financial institution Syncro Mastercard
Annual price: $35
Low rate of interest: 4% + prime (10.45%) on purchases. Minimal of 8.9%
Welcome provide: This card doesn’t have a welcome bonus at the moment.
Card particulars
| Rates of interest | 8% + prime (14.45%) on money advances, 8% + prime (14.45%) on steadiness transfers (word that the minimal buy rate of interest for the cardboard is 8.9% and the minimal steadiness switch and money advance charge is 12.9%) |
| Earnings required | None specified |
| Credit score rating | 660 or increased |
Our methodology: How we decide the most effective playing cards
The MoneySense editorial staff selects the most effective bank cards by assessing the worth they supply to Canadians throughout numerous classes. Our greatest low-interest bank cards rating relies on a comparability of an intensive listing of card particulars and options, together with competitively-low rates of interest, annual charges and welcome provides. We have now 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 knowledge for Canadians. The addition of hyperlinks from affiliate companions has no bearing on the outcomes. Learn extra about how MoneySense makes money.
Regularly requested questions
Most bank cards provide a hard and fast rate of interest, which means that there’s a single, unchanging share charged in your purchases. With a variable charge create card, alternatively, the speed you might be charged on unpaid balances can change primarily based on a couple of components.
Usually, the speed is tied to the prime charge, which fluctuates, with an extra mounted share on prime. For instance, a card would possibly cost the financial institution’s prime charge plus 5%. Additionally, your credit score rating performs a task in figuring out how low of a charge you will get.
There’s a easy motive to think about a variable charge card: You probably have a wonderful credit score rating, you would land a few of the lowest charges accessible within the bank card market. Nevertheless, in the event you don’t have a fantastic credit score rating, you wish to preserve issues easy or want a card that additionally comes with a fantastic steadiness switch promotion, chances are you’ll wish to take into account one with a hard and fast charge.
