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Updated: January 16, 2024

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware this post may contain links to products from our partners. We may receive a commission for products or services you sign up for through partner links.

Quick overview of the TD Low Rate Visa Card

The TD Low Rate Visa Card could be a good fit for those who prioritize a low annual interest rate on both purchases and cash advances. Though there is an annual fee of $25, you’ll likely save much more than that annually if you tend to carry a balance on your credit card. Coffee lovers will also appreciate earning 50% more Stars at participating Starbucks. Additional perks include discounts on rental cars at participating Budget and Avis locations, as well as purchase security and extended warranty protection. You also have the option to buy travel medical insurance and trip cancellation/trip interruption insurance. Additionally, the card is made from 90% recycled plastic.

Despite its benefits, the main drawback of the TD Low Rate Visa Card is that it doesn’t allow you to earn any rewards like points or cash back. Furthermore, the card doesn’t feature any kind of a welcome bonus, unlike some similar low rate cards that offer balance transfer promotions to new applicants.

Who’s the TD Low Rate Visa Card for?

The TD Low Rate Visa Card is ideal for those who prioritize lower interest rates because they often carry a balance on their credit card. It’s also a good fit for people who value a straightforward approach to credit and are focused on minimizing annual fees rather than on earnings rewards and taking advantage of perks. If you frequently rent cars and shop a lot at Starbucks, the card will serve you well.

Pros and cons

Pros

Pros

  • A low annual interest rate of 12.90% (13.90% in Quebec) on purchases and cash advantages

  • Earn 50% more Stars at participating Starbucks

  • Enjoy discounted rental cars at select Avis and Budget dealers

  • Extended warranty and purchase security

  • Take advantage of TD Purchase Plan for purchases of $100 or more

  • Option to purchase a TD Auto Club Membership, as well as travel medical insurance and trip cancellation/trip interruption insurance

  • Those with a low credit score may be eligible for the card

Cons

Cons

  • No reward points

  • Only comes with basic insurance, other insurance must be purchased for an additional cost

TD Low Rate Visa Card insurance coverage

  • Purchase security: If items you purchased with your TD Low Rate Visa Card are stolen or damaged within 90 days of purchase they will be eligible for repair, replacement or reimbursement. 
  • Extended warranty: The period of coverage of a manufacturer's warranty will be doubled up to 12 additional months.

Extra benefits

  • Option to buy a TD Auto Club Membership, travel medical insurance and trip cancellation/trip interruption insurance
  • TD payment plans, which lets you turn purchases of $100 or more into payment plans of 6, 12 or 18 months
  • The card is made from 90% recycled plastic
  • Compatible with Samsung and Apple Pay digital wallets

How TD Low Rate Visa Card compares

TD Low Rate Visa vs. MBNA True Line Gold Mastercard

For those looking for a low rate card, at first glance with its 8.99% APR, the MBNA True Line Gold Mastercard’s may seem to be a more attractive pick than the TD Low Rate Visa card. While it’s true that the rate of 8.99% is among the lowest in Canada, that rate is only available for purchases and balance transfers. If you want to make a cash advance, you’ll have to pay a whopping 24.99%, whereas with the TD Low Rate Visa, the APR of 12.90% is also available for cash advances. 

The MBNA True Line Gold Mastercard also comes with a higher annual fee at $39 per year compared to the TD card’s fee of $25. Of course, if you often have a balance on your credit card and don’t use cash advances then a card with an APR of 8.99% could save you significantly more than a card with a rate of 12.90%. Aside from rates and fees, the cards have several things in common. They both offer purchase assurance, extended warranty and rental car discounts. The MBNA card does come with trip assistance for things like lost luggage or ticket replacement but this is just an assistance service and not a form of insurance. 

If you rarely make cash advances and typically carry a balance, the MBNA card may save you more over the long run. However, if your monthly Starbucks spending is substantial, the TD Low Rate Visa's 50% more Stars perk might yield greater rewards, potentially making it a more cost-effective choice.

TD Low Rate Visa Vs. BMO Preferred Rate Mastercard

The BMO Preferred Rate Mastercard and the TD Low Rate Visa both cater to Canadians seeking low-interest credit card options, but they differ in their specific offerings. The BMO card has an incredibly attractive balance transfer offer with a 0.99% interest rate on balance transfers for the first nine months (though there is a 2% transfer fee). Additionally, the $29 annual fee is waived in the first year and cardholders can even have the annual fee rebated yearly if they have a BMO Performance chequing account. The BMO Preferred Rate Mastercard also has a slightly higher APR than the TD card. Its APR is 13.99% for purchases and 15.99% for cash advances.

Aside from the APR, waived annual fee and bonus offer, the BMO card also has other perks similar to the TD card, including extended warranty and purchase protection, a payment plan and the option to purchase roadside support. 

Overall, if you currently have a balance on your credit card and could take advantage of the BMO Preferred Rate Mastercard’s balance transfer promotion to significantly reduce (or even better yet, eliminate altogether) your amount owing, that card may be your best option for credit card debt management.

TD Low Rate Visa vs. RBC Visa Classic Low Rate Card

Features TD Low Rate Visa RBC Visa Classic Low Rate Card
Annual fee $25 $20
Welcome offer 8.99% promotional interest rate on purchases for the first six months from Account opening None
APR 12.90% for purchases and cash advances (13.90% in Quebec) 12.99% for purchases and cash advances
Insurance Purchase security and extended warranty Purchase security and extended warranty
Benefits Discounts on rentals cars, earn 50% more Stars at participating Starbucks, payment plan option Save 3¢/L on gas and 20% more Petro-Points at Petro-Canada, earn more Rexall Be Well points, 3-month free DashPass subscription
Review Read review Read review

Is the TD Low Rate Visa Card worth it?

If you prioritize a low APR, Starbucks perks and rental car discounts, the TD Low Rate Visa card is a good pick. However, if you already have lots of credit card debt that you’re serious about reducing, you may be wise to go with a low-rate card with a favourable balance transfer offer.

FAQs

  • What is the interest rate on the TD Low Rate Visa Card?

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    The interest rate on the TD Low Rate Visa card is 12.90% (13.90% in Quebec) for purchases and cash advances.

  • What is the credit card with the lowest interest rate?

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    The card with the lowest interest rate in Canada is the MBNA True Line Gold Mastercard, which features a rate of 8.99% for purchases and balance transfers. However it has a high rate of 24.99% for cash advances.

  • What Visa has the lowest interest rate?

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    If you’re specifically looking for a Visa card, the Laurentian Bank Visa Reduced Rate card has a slightly lower APR than the TD Low Rate Visa at 12.49% for purchases (though it charges 13.99% for cash advances).

  • What is a low rate card?

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    A low rate card is one that charges a lower-than-average standard rate of interest (versus Canadian credit cards’ typical rate of 19.99%-22.99%) for purchases. This type of card can be ideal for those who don’t always pay off their balance each month and are thus at risk of accumulating a large amount of high-interest debt. A card with a low APR can help keep credit card debt more manageable.

About our author

Sandra MacGregor
Sandra MacGregor, Freelance Contributor

Sandra MacGregor has been writing about finance and travel for nearly a decade. Her work has appeared in a variety of publications like the New York Times, the UK Telegraph, the Washington Post, Forbes.com and the Toronto Star. She spends her free time travelling, and has lived around the globe, including in Paris, South Korea and Cape Town.

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