Quick overview of the Laurentian Bank Visa* Reduced Rate card
The Laurentian Bank Visa Reduced Rate card is a low-rate credit card that could help you save money if you’re carrying a credit card balance.
Its 12.49% interest rate on purchases and balance transfers will almost cut your monthly interest in half compared to most other credit cards. Plus, it offers an appealing 0.99% interest for 6 months.
But, while low-rate credit cards are great for tackling a debt problem, the Laurentian Bank Visa Reduced Rate isn’t my favourite. For one, there’s an annual fee of $30. Why charge someone an annual fee when they’re struggling with debt?
Also, the welcome bonus is a tad misleading, in my opinion. Most cards with welcome bonuses continue to give cardholders points and cashback after the welcome bonus is obtained. However, the Laurentian card has no rewards — which may come as a surprise to cardholders who don’t read the full product offering.
Who’s the Laurentian Bank Visa* Reduced Rate card for?
This card is for people who are having difficulties staying on top of their credit card payments. While missing a payment or two may not seem like a big deal, over time the interest payments snowball – especially when your interest rate is north of 20%.
The Laurentian Bank Visa Reduced Rate card cuts that impact almost in half. Ask yourself – are you only making minimum payments on your credit card each month? Do you ever avoid looking at your credit card bill because the numbers are too intimidating (if you don’t look, it doesn’t exist, right?).
Trust me, I know that gut-wrenching feeling of logging into my banking app and seeing how much money I burned on the most recent Aritzia sale. But debt is a problem best tackled head on. And, taking the step toward a low-rate card could set you on a more financially healthy path in life.
Pros
-
Low, manageable annual fee
-
Welcome bonus offers up to 18,000 points in the first year plus a second-year annual fee waiver
-
0.99% interest for 6 months on balance transfers
Cons
-
No ongoing rewards outside of the welcome offer
-
No insurance coverage
Laurentian Bank Visa* Reduced Rate welcome bonus
The Laurentian Bank Reduced Rate Visa comes with a solid welcome offer of 10,000 bonus points:
Earn 10,000 bonus points after spending $4,000 on purchases in the first 6 months.
Additionally, earn up to 8,000 bonus points. Here’s how you can earn more points:
2,000 bonus points worth $20 when you make your first net purchase with your card in the first 3 months;
2,000 bonus points worth $20 when you set up a pre-authorized payment within the first 6 months;
2,000 bonus points worth $20 when you refer a friend or family member; and
2,000 bonus points worth $20 when you sign up for Assur-Payment™ within the first 6 months.
How to earn rewards with the Laurentian Bank Visa* Reduced Rate card
The Laurentian Bank Visa Reduced Rate card is not a rewards card. Once you’ve earned your welcome bonus, you won’t earn any points when you spend money on this card.
You can redeem your welcome bonus points as cash toward your statement balance or a specific purchase on your credit card.
Key benefits of the Laurentian Bank Visa* Reduced Rate card
The main appeal of the Laurentian Bank Visa Reduced Rate is its low rate.
Let’s say you’ve been laid off from your job, struggled to keep up on bills and now face a credit card bill of $10,000 – not an uncommon story in this economy. With a regular credit card, your monthly interest would be roughly $175. With the Laurentian Bank Visa Reduced Rate card, it would be around $104.
That’s a huge difference. When you’re digging yourself out of debt, every dollar counts. And, the longer you carry the debt, the bigger impact this reduced rate will have.
If you pay off your credit card bill each month, this card is not for you. There are plenty of travel and cashback cards that will be better suited to your needs.
Laurentian Bank Visa* Reduced Rate card insurance coverage
The card offers no insurance of any kind.
Extra benefits of the Laurentian Bank Visa* Reduced Rate card
- Shop online through Laurentian’s eShop to earn up to 15% back in points on special merchant offers on brands such as Apple, Lululemon and Sunwing
- Payment plans that allow you to set up smaller monthly payments on eligible payments, starting at 5.99% interest
What people have to say about the Laurentian Bank Visa* Reduced Rate card
When perusing personal finance forums, the Laurentian Bank Visa Reduced Rate card is hardly mentioned at all. It makes sense. We’d all rather talk about the credit cards that get us business class flights and over-the-water bungalows in the Maldives.
Discussions of debt rarely find their way into diary entries, let alone onto the internet.
Despite that, there are a few people willing to share their debt stories online. While not about the Laurentian Bank Visa Reduced Rate, this user shares a story of how a low-rate credit card helped them get out of debt.
“I was carrying a large balance on a regular interest card many years ago. I did some math and realized I could never hope to pay it off while paying that much interest. So I called my bank and asked about options for lower interest. Of course they wouldn't lower the interest on the card I had, but they told me they had a card with 12%, but it had something like a $39 annual fee. After doing some quick math, paying that $39 a year would save me hundreds a year in interest. I had always been against paying a yearly fee for some stupid reason.”
Reddit user r/imnothng
This story is informative because it shows us how sometimes an annual fee can be worth it, if your debt is high enough. Still, there are low-rate, no-fee credit cards available, which we’ll take a look at below.
Read more: Compare the best Laurentian Bank credit cards
How the Laurentian Bank Visa* Reduced Rate card compares
Here's how the Laurentian Bank Visa* Reduced Rate Card compares with other options:
Laurentian Bank Visa* Reduced Rate vs MBNA True Line® Mastercard®
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MBNA True Line Gold Mastercard - 🏆 winner, best low APR card in the Money.ca Credit Card Awards
The MBNA True Line® Gold Mastercard® has a comparable interest rate to the Laurentian card (10.99% vs. 12.49%) for purchases. Plus, there’s no annual fee – a huge bonus for those struggling with debt.
The promotional 0% interest rate for 12 months on balance transfers is a more appealing offer than Larentian’s promo. However, MBNA has a 3% balance transfer fee, whereas Laurentian’s fee is only 2%.
Where the Laurentian Bank Visa Reduced Rate card stands out is with its cash advance interest rate. Cash advances are 13.99%, compared to 24.99% for MBNA.
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.
Laurentian Bank Visa* Reduced Rate vs CIBC Select Visa* Card
CIBC Select Visa* Card
2.7
0% interest
Welcome offerGood
Suggested credit scoreTransfer your credit card balance - Get 0% interest for up to 10 months with a 1% transfer fee† and a first year annual fee rebate†
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
Eligibility
Good
Recommended Credit Score
$15,000†
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Household Income
$15,000†
10 cents
up to 10 cents off per litre♢ when you link your Journie Rewards card (terms apply)
up to 10 cents off per litre♢ when you link your Journie Rewards card (terms apply)
10 cents
13.99%†
Purchase APR
13.99%†
Balance Transfer Rate
13.99%†
Cash Advance APR
$29
Annual Fee First year annual fee rebate† $0 for up to 3 additional cards.†. (terms apply)
2.5%
Foreign Transaction Fee
Purchase APR
13.99%†
Balance Transfer Rate
13.99%†
Cash Advance APR
13.99%†
Annual Fee
$29
Foreign Transaction Fee
2.5%
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
Eligibility
Good
Recommended Credit Score
$15,000†
Required Annual Household Income
Recommended Credit Score
Good
Required Annual Household Income
$15,000†
10 cents
up to 10 cents off per litre♢ when you link your Journie Rewards card (terms apply)
up to 10 cents off per litre♢ when you link your Journie Rewards card (terms apply)
10 cents
13.99%†
Purchase APR
13.99%†
Balance Transfer Rate
13.99%†
Cash Advance APR
$29
Annual Fee First year annual fee rebate† $0 for up to 3 additional cards.†. (terms apply)
2.5%
Foreign Transaction Fee
Purchase APR
13.99%†
Balance Transfer Rate
13.99%†
Cash Advance APR
13.99%†
Annual Fee
$29
Foreign Transaction Fee
2.5%
The CIBC Select Visa* Card is overall an inferior card to the Laurentian Bank Visa Reduced Rate. The interest rate for purchases is higher at 13.99%. And you’re only saving $1 on the annual fee (although it is rebated for the first year).
CIBC does have an appealing welcome offer of 0% interest for up to 10 months on credit card balance transfers. Plus, there’s only a reduced transfer fee. So, if you’re planning to transfer your existing credit card balance to a low-rate card, I’d recommend the CIBC card.
The CIBC Select Visa Card also offers Common Carrier Accident Insurance. This covers accidental death or dismemberment resulting from riding as a passenger on a common carrier (such as a taxi, bus or plane). Truthfully, this insurance package won’t be useful to most people.
Disclosures:
- †Terms and Conditions Apply. This offer is not available for residents of Quebec.
This is a digital-exclusive offer.†
To be eligible for this offer:
1) this offer must have been directly communicated to you from CIBC or from a partner/affiliate; and
2) you must apply for the eligible card through the link provided in the CIBC or partner/affiliate communication to you.†
This offer is reserved for you. Please do not forward it to anyone else.
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.
Any opinions, analyses, reviews, or recommendations expressed on this page are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by our advertising partners.
Is the Laurentian Bank Visa* Reduced Rate card worth it?
If you carry a balance on your credit card, then yes – a low-fee credit card is definitely worth it. I would suggest reviewing some of the best no-fee alternatives before settling on the Laurentian Bank Visa Reduced Rate, but if your credit card bill is high enough, the $30 annual fee will be well spent.
Eligibility requirements
- Credit needed: Good
- Income requirements: N/A
After years as a product manager at TD Bank and Ratehub.ca, Christine now expresses herself with words, especially in credit cards and personal finance.
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