Best low interest credit cards in Canada
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Top 3 low interest credit cards in Canada
Low interest, or low APR credit cards, offer interest rates on purchases that are significantly lower than the national average. These low APR cards can help you pay off balances faster than typical high rate cards. Here's our top 3 with other more specific options below.
Struggling with credit card debt? You're not alone. Many Canadians find themselves carrying a balance, whether it's for a big purchase or unexpected expenses. That's where low interest credit cards come in handy. Low interest rate credit cards focus on great rates and little else, helping you keep interest charges down.
🏆Gold: MBNA True Line® Gold Mastercard®
$0
First Year Value
$0
Annual Value
Get this card if you...
- want a low-interest rate on purchases and balance transfers
- want to lower existing credit card debt
- value purchase protection and extended warranty coverage
Annual Fee & Annual Interest Rates
$39
Annual Fee
10.99%
Purchase
24.99%
Cash Advance
13.99%
Balance Transfer
Our Take
The MBNA True Line® Gold Mastercard® is a low-interest credit card designed for individuals seeking to manage their credit card debt more effectively. It offers essential benefits such as purchase assurance, extended warranty coverage, and fraud protection.
Eligibility
Good (620 - 670)
Recommended Credit Score
Pros
- Low interest rate on purchases and balance transfers
- Proactive fraud protection
Cons
- $39 annual fee
- Penalty interest rate if minimum payments are missed
Annual Interest Rates
10.99%
Purchase
24.99%
Cash Advance
13.99%
Balance Transfer
Fees
$39
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
Rewards
10.99%
10.99% interest rate on purchases and 13.99% on balance transfers✪
100%
This card is made from 100% recycled plastic
Funds Transfer
Use available credit on your credit card to transfer funds right to your chequing account.
Our Take
The MBNA True Line® Gold Mastercard® is a low-interest credit card designed for individuals seeking to manage their credit card debt more effectively. It offers essential benefits such as purchase assurance, extended warranty coverage, and fraud protection.
Eligibility
Good (620 - 670)
Recommended Credit Score
Pros
- Low interest rate on purchases and balance transfers
- Proactive fraud protection
Cons
- $39 annual fee
- Penalty interest rate if minimum payments are missed
Annual Interest Rates
10.99%
Purchase
24.99%
Cash Advance
13.99%
Balance Transfer
Fees
$39
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
Rewards
10.99%
10.99% interest rate on purchases and 13.99% on balance transfers✪
100%
This card is made from 100% recycled plastic
Funds Transfer
Use available credit on your credit card to transfer funds right to your chequing account.
The MBNA True Line® Gold Mastercard® remains our top pick for Canadians searching for the lowest possible interest rate from a major Canadian bank. Here’s why we love the True Line Gold:
- Defending champion: The True Line® Gold retains its crown as our #1 low interest credit card for the second consecutive year, proving its consistent value in the Canadian market.
- Unbeatable purchase interest rate: With a 10.99% APR on purchases, this card offers the lowest standard interest rate among all major Canadian banks—nearly half the typical 19.99%-20.99% charged by most credit cards.
- Competitive balance transfer rate: The 13.99% APR on balance transfers provides substantial savings compared to regular credit cards, making it an excellent option for consolidating existing credit card debt.
- Reasonable annual fee: While not fee-free, the True Line’s modest annual fee is quickly offset by interest savings for anyone carrying even a small balance.
- Peace of mind protection: Includes purchase protection and extended warranty benefits, adding value beyond just the low interest rate.
Let’s say you buy a $5,000 couch and plan to pay it off in 12 months. You’ll pay total interest of $302 plus the annual fee for a total debt cost of $341. But if you put that same couch on a credit card with no annual fee at 19.99% you’ll pay $557.80 in interest, or 61% more, including the annual fee.
Disclosures:
-
†, ✪, Terms and Conditions apply.
This offer is not available for residents of Quebec. For residents of Quebec, please click here.
Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.
The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.
🥈 Silver: CIBC Select Visa*
0% interest
Welcome Bonus
$0
First Year Value
$0
Annual Value
Welcome Bonus: Transfer your credit card balance and get 0% interest for up to 10 months with a 1% transfer fee† and a first year annual fee rebate.‡
Get this card if you...
- want a low-interest rate on purchases and balance transfers
- want a modest annual fee
- don't need comprehensive insurance benefits
Annual Fee & Annual Interest Rates
$29
Annual Fee
13.99%†
Purchase
13.99%†
Cash Advance
13.99%†
Balance Transfer
Our Take
The CIBC Select Visa* Card is a low-interest credit card offering a promotional interest rate on balance transfers for a specified period, subject to a transfer fee. It features a low annual fee and provides basic insurance coverage, making it suitable for individuals seeking to manage existing credit card debt or minimize interest charges on new purchases.
Eligibility
Good (620 - 670)
Recommended Credit Score
$15,000
Required Annual Household Income
Pros
- 0% Balance Transfer rate for a generous 10 months with a low (1%) Balance Transfer fee†
- 13.99%† Purchase Annual Interest Rate
- A first year annual fee rebate†
- No annual fee for additional cards (up to 3)
Cons
- There are other low interest cards available with no annual fee whatsoever
- Few distinguishing benefits beyond its interest rates
Annual Interest Rates
13.99%†
Purchase
13.99%†
Cash Advance
13.99%†
Balance Transfer
0.00%†
Balance Transfer (Introductory)
25.99%†
Penalty
Fees
$29
Annual Fee
2.50%†
Foreign Transaction
5.00%†
Balance Transfer
$29
Over The Limit Penalty
$42.5
Return Penalty
Rewards
10 cents
up to 10 cents off per litre♢ when you link your Journie Rewards card (terms apply)
Insurance Benefits
$100,000
Travel accident insurance amount
Transfer your credit card balance and get 0% interest for up to 10 months with a 1% transfer fee†
Transfer up to 50% of your assigned credit limit†.
If you choose to carry a balance and you make your minimum payments on time, a balance transfer could save you money on interest.
Take advantage of this 0% introductory interest rate on balance transfers for your first 10 months. You’ll only have to pay a 1% fee† when you transfer your balance from another card to the CIBC Select Visa Card.
This balance transfer offer is only available at the time of your online application†. Simply tick the checkbox to select the balance transfer option when you’re filling out your application.
Once you take advantage of this offer, you'll have a promotional rate balance on your account. As a result, you will lose your interest-free grace period on new purchases unless you pay your amount due, including any promotional rate balances, in full each month. While you will enjoy the promotional rate on the balances you transfer by using this offer, new purchases will be subject to the purchase interest rate.
Our Take
The CIBC Select Visa* Card is a low-interest credit card offering a promotional interest rate on balance transfers for a specified period, subject to a transfer fee. It features a low annual fee and provides basic insurance coverage, making it suitable for individuals seeking to manage existing credit card debt or minimize interest charges on new purchases.
Eligibility
Good (620 - 670)
Recommended Credit Score
$15,000
Required Annual Household Income
Pros
- 0% Balance Transfer rate for a generous 10 months with a low (1%) Balance Transfer fee†
- 13.99%† Purchase Annual Interest Rate
- A first year annual fee rebate†
- No annual fee for additional cards (up to 3)
Cons
- There are other low interest cards available with no annual fee whatsoever
- Few distinguishing benefits beyond its interest rates
Annual Interest Rates
13.99%†
Purchase
13.99%†
Cash Advance
13.99%†
Balance Transfer
0.00%†
Balance Transfer (Introductory)
25.99%†
Penalty
Fees
$29
Annual Fee
2.50%†
Foreign Transaction
5.00%†
Balance Transfer
$29
Over The Limit Penalty
$42.5
Return Penalty
Rewards
10 cents
up to 10 cents off per litre♢ when you link your Journie Rewards card (terms apply)
Insurance Benefits
$100,000
Travel accident insurance amount
Transfer your credit card balance and get 0% interest for up to 10 months with a 1% transfer fee†
Transfer up to 50% of your assigned credit limit†.
If you choose to carry a balance and you make your minimum payments on time, a balance transfer could save you money on interest.
Take advantage of this 0% introductory interest rate on balance transfers for your first 10 months. You’ll only have to pay a 1% fee† when you transfer your balance from another card to the CIBC Select Visa Card.
This balance transfer offer is only available at the time of your online application†. Simply tick the checkbox to select the balance transfer option when you’re filling out your application.
Once you take advantage of this offer, you'll have a promotional rate balance on your account. As a result, you will lose your interest-free grace period on new purchases unless you pay your amount due, including any promotional rate balances, in full each month. While you will enjoy the promotional rate on the balances you transfer by using this offer, new purchases will be subject to the purchase interest rate.
If you're looking to tackle existing credit card debt, the Scotiabank Value® Visa* Card offers an exceptional balance transfer welcome offer combined with ongoing great low rates:
- Consistently low interest: The card offers a highly competitive 13.99% APR on both purchases and balance transfers, providing long-term value
- Outstanding introductory offer: Enjoy 0.99% introductory interest rate on balance transfers for the first 9 months (2% fee per cash advance, 13.99% after that), plus no annual fee for the first year ($29 value)., which gives you the breathing room needed to make significant progress on paying down existing debt
- Affordable annual fee: At just $29, the annual fee is minimal compared to the potential interest savings, making this card accessible to most Canadians and budgets
- Simple, straightforward benefits: The card focuses on what matters most—saving you money on interest—without complicated rewards programs or unnecessary features.
- Flexible payment options: Includes options like Scotia Credit Card Protection and mobile banking features to help manage your account effectively.
Disclosures:
- The information for the CIBC Select Visa* Card has been collected independently by Money.ca. The card details on this page have not been reviewed or provided by the card issuer.
- †Terms and Conditions Apply. This offer is not available for residents of Quebec.
🥉 Bronze: Scotiabank Platinum American Express® Card
up to 80,000 points
Welcome Bonus
$2,581
First Year Value
$81
Annual Value
Welcome Bonus: Earn up to $2,500* in value in the first 14 months, including up to 80,000 bonus Scene+ points. Expires Oct 31, 2025
Get this card if you...
- travel often and want premium travel perks like lounge access
- want to avoid paying foreign exchange fees
- value a great welcome offer
Annual Fee & Annual Interest Rates
$399
Annual Fee
9.99%
Purchase
9.99%
Cash Advance
9.99%
Balance Transfer
Our Take
The Scotiabank Platinum American Express® Card is a premium travel rewards credit card offering elevated earn rates on all eligible purchases, with additional benefits such as complimentary airport lounge access and comprehensive travel insurance. It charges no foreign transaction fees and provides access to exclusive events.
Eligibility
Good (620 - 670)
Recommended Credit Score
$12,000
Required Annual Personal Income
Pros
- The card offers a competitive low interest rate on purchases, cash advances, and balance transfers
- Comprehensive insurance coverage
- Complimentary Airport lounge access
- No foreign transaction fees
- Ideal for travelers as it has no foreign transaction fees
- Offers a substantial welcome bonus that includes up to 80,000 Scene+ points
- Enjoy premium perks like Hertz #1 Club Gold membership and concierge services.
Cons
- High annual fee: At $399, the annual fee is steep, which could offset the rewards and benefits for some cardholders
- Below average rewards rate: Lower compared to other cards with similar or lower annual fees
- Limited American Express acceptance: Especially outside major cities
- Rewards potential: The net rewards potential is relatively low when considering the high annual fee
- Non-transferable points: Scene+ points cannot be transferred to other rewards programs
Annual Interest Rates
9.99%
Purchase
9.99%
Cash Advance
9.99%
Balance Transfer
Fees
$399
Annual Fee
0.00%
Foreign Transaction
5.00%
Balance Transfer
$5
Cash Advance
$29
Over The Limit Penalty
Rewards Scene+
2x
Scene+ points for every $1 spent on all other eligible purchases
4x
Scene+ points for every dollar you spend on hotel bookings, car rentals, and things to do with Scene+ Travel, Powered by Expedia
0%
No foreign transaction fees
10
Complimentary airport lounge passes per year
Insurance Benefits
$1,000
Mobile device insurance amount
$2,000,000
Emergency medical insurance amount
10
Emergency medical insurance over 65 days
$500,000
Travel accident insurance amount
$1,000
Hotel burglary insurance
$65,000
Rental car insurance amount
Earn up to $2,500* in value in the first 14 months, including up to 80,000 bonus Scene+ points.
To qualify for this Offer make sure to open a new Scotiabank Platinum American Express credit card account (“Account”) opened between January 3, 2025 and October 31, 2025.
To qualify for the 80,000 bonus Scene+ points:
Earn 60,000 bonus Scene+ points by making at least $3,000 in everyday eligible purchases in your first 3 months.
Plus, for a limited time, you are eligible to earn a 20,000 Scene+ point bonus when you spend at least $10,000 in everyday eligible purchases in your first 14 months.
Once you qualify, your account will be credited in 2 instalments:
60,000 bonus Scene+ points will be credited to the applicable Scene+ membership account approximately 8 weeks after the qualifying $3,000 in eligible purchases being posted to your Account within the first 3 months of Account opening.
An additional 20,000 bonus Scene+ points will be credited to the applicable Scene+ membership account approximately 8 weeks after you have met the $10,000 spend threshold in your Account within the first 14 months of Account opening.
Note: For joint Accounts, the applicable bonus will be credited to the Scene+ account linked to the Account of the borrower that completed the last transaction to meet the qualifying amount of eligible purchases in the case of the 60,000 Point Bonus and the Additional 20,000 Point Bonus.
Individuals who are currently or were previously primary or secondary cardholders of a Scotiabank personal credit card in the past 2 years, including those that switch from an existing Scotiabank personal credit card, as well as employees of Scotiabank, are not eligible for this offer.
*See terms and conditions for full details.
Our Take
The Scotiabank Platinum American Express® Card is a premium travel rewards credit card offering elevated earn rates on all eligible purchases, with additional benefits such as complimentary airport lounge access and comprehensive travel insurance. It charges no foreign transaction fees and provides access to exclusive events.
Eligibility
Good (620 - 670)
Recommended Credit Score
$12,000
Required Annual Personal Income
Pros
- The card offers a competitive low interest rate on purchases, cash advances, and balance transfers
- Comprehensive insurance coverage
- Complimentary Airport lounge access
- No foreign transaction fees
- Ideal for travelers as it has no foreign transaction fees
- Offers a substantial welcome bonus that includes up to 80,000 Scene+ points
- Enjoy premium perks like Hertz #1 Club Gold membership and concierge services.
Cons
- High annual fee: At $399, the annual fee is steep, which could offset the rewards and benefits for some cardholders
- Below average rewards rate: Lower compared to other cards with similar or lower annual fees
- Limited American Express acceptance: Especially outside major cities
- Rewards potential: The net rewards potential is relatively low when considering the high annual fee
- Non-transferable points: Scene+ points cannot be transferred to other rewards programs
Annual Interest Rates
9.99%
Purchase
9.99%
Cash Advance
9.99%
Balance Transfer
Fees
$399
Annual Fee
0.00%
Foreign Transaction
5.00%
Balance Transfer
$5
Cash Advance
$29
Over The Limit Penalty
Rewards Scene+
2x
Scene+ points for every $1 spent on all other eligible purchases
4x
Scene+ points for every dollar you spend on hotel bookings, car rentals, and things to do with Scene+ Travel, Powered by Expedia
0%
No foreign transaction fees
10
Complimentary airport lounge passes per year
Insurance Benefits
$1,000
Mobile device insurance amount
$2,000,000
Emergency medical insurance amount
10
Emergency medical insurance over 65 days
$500,000
Travel accident insurance amount
$1,000
Hotel burglary insurance
$65,000
Rental car insurance amount
Earn up to $2,500* in value in the first 14 months, including up to 80,000 bonus Scene+ points.
To qualify for this Offer make sure to open a new Scotiabank Platinum American Express credit card account (“Account”) opened between January 3, 2025 and October 31, 2025.
To qualify for the 80,000 bonus Scene+ points:
Earn 60,000 bonus Scene+ points by making at least $3,000 in everyday eligible purchases in your first 3 months.
Plus, for a limited time, you are eligible to earn a 20,000 Scene+ point bonus when you spend at least $10,000 in everyday eligible purchases in your first 14 months.
Once you qualify, your account will be credited in 2 instalments:
60,000 bonus Scene+ points will be credited to the applicable Scene+ membership account approximately 8 weeks after the qualifying $3,000 in eligible purchases being posted to your Account within the first 3 months of Account opening.
An additional 20,000 bonus Scene+ points will be credited to the applicable Scene+ membership account approximately 8 weeks after you have met the $10,000 spend threshold in your Account within the first 14 months of Account opening.
Note: For joint Accounts, the applicable bonus will be credited to the Scene+ account linked to the Account of the borrower that completed the last transaction to meet the qualifying amount of eligible purchases in the case of the 60,000 Point Bonus and the Additional 20,000 Point Bonus.
Individuals who are currently or were previously primary or secondary cardholders of a Scotiabank personal credit card in the past 2 years, including those that switch from an existing Scotiabank personal credit card, as well as employees of Scotiabank, are not eligible for this offer.
*See terms and conditions for full details.
For those who want premium rewards without the typical high interest rates, the Scotiabank Platinum American Express® Card offers a unique combination of a great rate and impressive travel perks and rewards:
- Luxury paired with low rates: This ultra-premium rewards card breaks the mold by offering a surprisingly low 9.99% APR on both purchases and cash advances—unheard of in the premium card space.
- Generous rewards structure: Earn 2x points on all purchases with no category restrictions, allowing you to accumulate rewards quickly while maintaining a lower interest rate. Plus, you can earn up to 4x on Scene+ Travel, powered by Expedia
- Extensive premium benefits: Includes comprehensive travel insurance, airport lounge access, and concierge services typically reserved for cards with much higher interest rates.
- Big annual fee: The $399 annual fee makes this card unsuitable for many Canadians, but for frequent travelers who occasionally carry balances, the combination of rewards and low interest could provide exceptional value.
- Best for specific Canadians: Ideal for high-income earners who want premium benefits but occasionally need to carry a balance, offering the best of both worlds for this unique demographic.
Disclosures:
-
Conditions Apply. Visit here for the Scotiabank Platinum American Express® Card to learn more.*See Card Provider's website and Card Application for complete card details, terms and current offers. Reasonable efforts are made to maintain accuracy of information.
Best low interest credit card from BMO
0.99% intro rate
Welcome Bonus
$0
First Year Value
$0
Annual Value
Welcome Bonus: Get a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee.*
Get this card if you...
- want to pay down credit card debt
- want to take advantage of a low-interest rate promotion
- value extended warranty and purchase protection
Annual Fee & Annual Interest Rates
$29
Annual Fee
13.99%
Purchase
15.99%
Cash Advance
15.99%
Balance Transfer
Our Take
The BMO Preferred Rate Mastercard®* is a low-interest credit card designed for individuals seeking to manage their credit card debt more effectively. It offers a competitive interest rate on purchases and balance transfers, along with benefits such as purchase protection and extended warranty, making it a practical choice for those might carry the occasional monthly balance, or who value low interest rates more than rewards.
Eligibility
Good (620 - 670)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- Low-interest rate: Offers a competitive purchase interest rate
- Introductory balance transfer offer for the first nine months
- BMO PaySmart™ Installment plans: Turn new credit card purchases into small, interest-free monthly payments with a small fee.
- Additional cardholder: You can add an additional cardholder for free
- Free extended warranty and purchase protection*
- Zero Dollar Liability: protects you from unauthorized use of your credit card*
Cons
- No rewards: Your focus is paying down debt, not collecting miles.
- Foreign transaction fee: Charges a 2.5% fee on foreign transactions.
- Balance transfer fee: While normal, it’s a bit painful to have to fork over a 2% fee on balance transfers.
Annual Interest Rates
13.99%
Purchase
15.99%
Cash Advance
15.99%
Balance Transfer
0.99%
Balance Transfer (Introductory)
Fees
$29
Annual Fee
2.00%
Balance Transfer
$5
Cash Advance
Rewards
0.99%
0.99% introductory interest rate on balance transfers for 9 months with a 2% transfer fee and BMO will waive the annual fee on your first anniversary.*
Get a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee*.
Our Take
The BMO Preferred Rate Mastercard®* is a low-interest credit card designed for individuals seeking to manage their credit card debt more effectively. It offers a competitive interest rate on purchases and balance transfers, along with benefits such as purchase protection and extended warranty, making it a practical choice for those might carry the occasional monthly balance, or who value low interest rates more than rewards.
Eligibility
Good (620 - 670)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- Low-interest rate: Offers a competitive purchase interest rate
- Introductory balance transfer offer for the first nine months
- BMO PaySmart™ Installment plans: Turn new credit card purchases into small, interest-free monthly payments with a small fee.
- Additional cardholder: You can add an additional cardholder for free
- Free extended warranty and purchase protection*
- Zero Dollar Liability: protects you from unauthorized use of your credit card*
Cons
- No rewards: Your focus is paying down debt, not collecting miles.
- Foreign transaction fee: Charges a 2.5% fee on foreign transactions.
- Balance transfer fee: While normal, it’s a bit painful to have to fork over a 2% fee on balance transfers.
Annual Interest Rates
13.99%
Purchase
15.99%
Cash Advance
15.99%
Balance Transfer
0.99%
Balance Transfer (Introductory)
Fees
$29
Annual Fee
2.00%
Balance Transfer
$5
Cash Advance
Rewards
0.99%
0.99% introductory interest rate on balance transfers for 9 months with a 2% transfer fee and BMO will waive the annual fee on your first anniversary.*
Get a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee*.
The BMO Preferred Rate Mastercard® is an excellent option for Canadians seeking a low-interest credit card, though it didn't make our top three list this year. Here's why it's still a strong option to consider in the low APR category:
- Competitive interest rate: With a 13.99% purchase interest rate, this card offers significant savings compared to typical credit cards charging 19.99%-20.99%, helping you minimize interest costs when carrying a balance
- Attractive balance transfer offer: Get a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee.*, This gives you breathing room to pay down existing debt more efficiently
- Reasonable annual fee: At just $29, the annual fee is modest and quickly offset by interest savings for anyone carrying even a small balance
- Accessible qualification requirements: Unlike some premium low-interest cards, this option has minimal income requirements, making it accessible to most Canadians with a credit score of 660 or higher
- Free extended warranty and purchase protection: Enjoy additional coverage on eligible purchases, adding value beyond just the low interest rate
- Zero Dollar Liability protection: This feature protects you against unauthorized purchases, adding peace of mind to your everyday transactions
- Worldwide acceptance: Use your card at over 30 million locations worldwide through the Mastercard network
Disclosures:
- *Terms and conditions apply
-
BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information
Best low interest credit card for RBC
$0
First Year Value
$0
Annual Value
Get this card if you...
- tend to carry a balance on your card
- want a low interest rate
- have a poor credit score
Annual Fee & Annual Interest Rates
$20
Annual Fee
12.99%
Purchase
12.99%
Cash Advance
12.99%
Balance Transfer
Our Take
The RBC® Visa‡ Classic Low Rate Option is a credit card designed for individuals who may carry a balance, offering a lower annual interest rate on purchases and cash advances compared to standard credit cards. However, it carries an annual fee, and there are alternative low-interest credit cards available that offer similar or lower rates without an annual fee, such as the MBNA True Line® Mastercard®.
Eligibility
Fair (300 - 619)
Recommended Credit Score
Pros
- Low interest rate
- No minimum income requirement
- Basic purchase protection and extended warranty
- Linked benefits with Petro-Points program
- Holistic evaluation for varied credit histories
Cons
- $20 annual fee
- Other cards offer similar rates with no annual fee
- Optional benefits may be found cheaper elsewhere
- Not among the best low-interest cards due to competition
Annual Interest Rates
12.99%
Purchase
12.99%
Cash Advance
12.99%
Balance Transfer
Fees
$20
Annual Fee
2.50%
Foreign Transaction
5.00%
Balance Transfer
$5
Cash Advance
$45
Return Penalty
Our Take
The RBC® Visa‡ Classic Low Rate Option is a credit card designed for individuals who may carry a balance, offering a lower annual interest rate on purchases and cash advances compared to standard credit cards. However, it carries an annual fee, and there are alternative low-interest credit cards available that offer similar or lower rates without an annual fee, such as the MBNA True Line® Mastercard®.
Eligibility
Fair (300 - 619)
Recommended Credit Score
Pros
- Low interest rate
- No minimum income requirement
- Basic purchase protection and extended warranty
- Linked benefits with Petro-Points program
- Holistic evaluation for varied credit histories
Cons
- $20 annual fee
- Other cards offer similar rates with no annual fee
- Optional benefits may be found cheaper elsewhere
- Not among the best low-interest cards due to competition
Annual Interest Rates
12.99%
Purchase
12.99%
Cash Advance
12.99%
Balance Transfer
Fees
$20
Annual Fee
2.50%
Foreign Transaction
5.00%
Balance Transfer
$5
Cash Advance
$45
Return Penalty
The RBC® Visa‡ Classic Low Rate Option delivers solid value for Canadians seeking a straightforward low interest credit card from one of Canada's largest banks:
- Predictable interest rate: With a 12.99% interest rate on purchases and cash advances, this card offers substantial savings compared to standard credit cards, making it easier to manage your balance when you need to carry one
- Moderate annual fee: At just $Fair annually, the annual fee is lower than many competing low-interest cards, striking a balance between cost and value
- Flexible credit limits: Receive a credit limit between $500-$5,000 based on your financial situation, making this card accessible to a wide range of Canadians.
- Optional balance transfer promotion: RBC occasionally offers promotional balance transfer rates to eligible cardholders, helping you consolidate higher-interest debt when these offers are available
- Purchase security and extended warranty: Enjoy added protection on eligible purchases, with coverage for 90 days against loss, theft or damage and extended warranty that doubles the manufacturer's warranty up to one additional year
- Seamless integration with RBC ecosystem: If you're an existing RBC customer, this card integrates smoothly with your banking relationship, offering streamlined payments and account management
Disclosures:
-
Refer to RBC page for up to date offer terms and conditions.
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Best low interest credit card for Amex
$0
First Year Value
$0
Annual Value
Get this card if you...
- tend to carry a balance and want a low interest rate
- want an affordable annual fee but also great perks
- have a low credit score
Annual Fee & Annual Interest Rates
$25
Annual Fee
12.99%
Purchase
12.99%
Cash Advance
Our Take
The American Express Essential™ Credit Card is a low-interest credit card designed for individuals seeking to manage their finances more effectively. It offers benefits such as purchase protection, extended warranty, and access to exclusive events through American Express® Experiences.
Eligibility
Fair (300 - 619)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- Low APR for purchases and cash advances
- Low annual fee and free additional cards
- Buyer’s purchase protections for extended warranty
- Easy eligibility for Canadian residents
- World-class service from American Express
- Access to exclusive events with American Express® Experiences
Cons
- Potential high fees for late-payments and foreign transactions
- Interest rates may increase if payments are missed
- Limited installment program fees may apply
Annual Interest Rates
12.99%
Purchase
12.99%
Cash Advance
28.99%
Penalty
Fees
$25
Annual Fee
2.50%
Foreign Transaction
Rewards Membership Rewards
Insurance Benefits
$100,000
Travel accident insurance amount
Our Take
The American Express Essential™ Credit Card is a low-interest credit card designed for individuals seeking to manage their finances more effectively. It offers benefits such as purchase protection, extended warranty, and access to exclusive events through American Express® Experiences.
Eligibility
Fair (300 - 619)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- Low APR for purchases and cash advances
- Low annual fee and free additional cards
- Buyer’s purchase protections for extended warranty
- Easy eligibility for Canadian residents
- World-class service from American Express
- Access to exclusive events with American Express® Experiences
Cons
- Potential high fees for late-payments and foreign transactions
- Interest rates may increase if payments are missed
- Limited installment program fees may apply
Annual Interest Rates
12.99%
Purchase
12.99%
Cash Advance
28.99%
Penalty
Fees
$25
Annual Fee
2.50%
Foreign Transaction
Rewards Membership Rewards
Insurance Benefits
$100,000
Travel accident insurance amount
- Competitive fixed interest rate: With a 12.99% interest rate on purchases and cash advances, this card offers one of the better rates in Canada without requiring premium status or high income thresholds
- No annual fee: Unlike many low interest competitors, the Amex Essential charges absolutely no annual fee, making it an economical choice for cost-conscious Canadians
- Flexible payment options: The card offers installment plan options, allowing you to break larger purchases into more manageable monthly payments while maintaining the low interest rate
- Comprehensive insurance package: Enjoy purchase protection, buyer's assurance, and travel accident insurance, adding significant value to a no-fee, low-interest card
- Easy qualification requirements: With more accessible income and credit score requirements compared to premium low-rate cards, this option opens the door to low interest rates for more Canadians
Disclosures:
-
Contact American Express for the most up-to-date referral bonus figures.
American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment.
Expert Tip
Your credit card interest rate is actually negotiable
If you've recently received a raise, paid off a loan, or improved your debt-to-income ratio, use this as leverage when you call your credit card provider to negotiate. These positive financial changes can strengthen your negotiating position. And if your current provider won't give you a lower interest rate on your current card, you can always choose a new one from our list above.
Cory Santos
Credit card editor
How do low interest credit cards work?
Here's the scoop: Low interest cards typically charge 10% to 15% APR, nearly half the rate of traditional cards. It's a smart move if you're looking to save on interest charges.
Let's break it down:
- Traditional cards: 20%+ interest
- Low interest cards: 10-15% interest
- Potential savings: Up to 10% annually
Think rewards cards are the answer? Think again. You'll likely spend more on interest than you'll earn in rewards if you're carrying a balance. We’ve compared all the low interest credit cards in Canada to find the one that’s easiest on your wallet.
Read more: How does credit card interest work?
Low interest credit cards pros and cons
Pros
- Lower interest over time: The most obvious benefit is in the name. With a lower Annual Percentage Rate (APR), you'll pay less in interest charges if you carry a balance from month to month. This can lead to significant savings over time
- Predicable costs: Many low APR cards offer a fixed rate, which means you can better predict your interest costs and plan your budget accordingly
- Financial breathing space: If you need to make a big purchase and can't pay it off immediately, a low APR card gives you more time to pay without accruing excessive interest charges
Cons
- Limited rewards: The trade-off for a lower APR is often a less robust rewards program. You might miss out on cash back, travel points, or other perks offered by rewards cards
- Annual fees might apply: Some low APR cards come with annual fees. You'll need to weigh whether the interest savings justify this extra cost
- Better credit required: Low APR cards typically require a good to excellent credit score. If your credit isn't in top shape, you might not qualify for the best rate
How much money can a low interest card save you?
A low APR credit card can save you money by reducing the amount of interest you pay on your credit card balance. This is particularly beneficial if you tend to carry a balance from month to month or if you're planning a large purchase that you'll need to pay off over time.
Let’s say you owe $4,000 on a credit card currently charging you 19.99%. You’re diligently paying $300 per month towards your balance. Here’s the difference it would make to transfer that balance to a low-interest card with an interest rate of 12.99%:
-
Regular credit card
Low interest rate credit card
Interest rate
19.99%
12.99%
Months to debt free
16
15
Total interest paid
$557.21
$340.39
No matter the reason, a low interest credit card can save you money when borrowing and help you get out of debt faster since more of your payment will be going toward the principal instead of the interest.
Let's break this down with a real-world example for the Canadian market:
Let's consider the CIBC Select Visa* Card, which is known for its low interest rate. Now, let's compare this to a typical credit card with a 19.99% interest rate and no annual fee.
Scenario:
Imagine you have a $5,000 balance on your credit card that you plan to pay off over 12 months.
Card
Monthly payment
Interest paid
Typical credit card (19.99% APR)
$462
$550
CIBC Select Visa* Card (13.99% APR)
$448
$380
Savings:
- Interest saved: $550 - $380 = $170
- Minus annual fee: $170 - $29 = $141
In this scenario, you would save about $141 in the first year by using the low APR card, even after accounting for the annual fee. Again, let's compare this to a typical credit card with a 19.99% interest rate and no annual fee.
The MBNA True Line Gold is our pick for the best low APR credit card in Canada thanks to its impressive everyday APR.
Scenario:
Imagine you have a $5,000 balance on your credit card that you plan to pay off over 12 months.
Card
Monthly payment
Interest paid
Typical credit card (19.99% APR)
$462
$550
MBNA True Line Gold Mastercard (10.99% APR)
$442
$300
Savings:
- Interest saved: $550 - $300 = $250
- Minus annual fee: $250 - $39 = $211
In this scenario, you'd save about $211 in the first year by using the MBNA True Line Gold Mastercard, even after accounting for the annual fee. That's like finding an extra $200 in your pocket!
Low interest vs. 0% Intro APR: Which is right for you?
Feature
Low Interest Cards
0% Intro APR Cards
Interest rate
Consistent low rate (8.99%-12.99%)
0% for intro period, then higher
Best for
Long-term balance carrying
Short-term large purchases or balance transfers
Predictability
Stable, consistent charges
Changes after intro period
Risk
Lower long-term interest costs
Potential for high interest if balance remains after intro period
Rewards
Often fewer perks
May offer more rewards or sign-up bonuses
Read more: The best balance transfer credit cards
Should you get a low interest credit card?
Low interest rate credit cards are awesome for financing a big purchase, debt consolidation or to keep on hand for emergencies. Paying the annual fee is most likely worth it if you carry a balance from month-to-month. But if you’re planning to use the card frequently for something other than new purchases then make sure to review the applicable rates for cash advances and balance transfers as they may differ.
To choose the best credit card, don’t forget to take into account the perks and rewards. Either way, a low interest credit card is one of the cheapest ways to borrow money without putting down collateral. And if you carry a balance it’s going to put a lot more money in your pocket than any reward or cash-back card.
Low interest rate credit card FAQs
Bridget Casey
Author
Bridget Casey is the award-winning entrepreneur behind Money After Graduation, a Canadian financial literacy website aimed at 20 and 30-somethings. She holds a BSc. from the University of Alberta, and an MBA in Finance from the University of Calgary. She has been featured as a millennial financial expert by Yahoo! Finance, TIME Magazine, Business Insider, CBC and BNN. Bridget was recognized as one of Alberta's Top Young Innovators in 2016.
Cory Santos
Credit card editor
Cory Santos is a finance writer, editor and credit card expert with nearly a decade of experience in personal finance. Cory joined Wise Publishing from BestCards, with bylines in numerous print and digital publications across North America, including the Miami Herald, St. Louis Post-Dispatch, Debt.ca, AOL, MSN and Medium as well as financial podcasts like KOFE Talk.
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