26 Jun The best low-interest credit cards in Canada for 2024
The savings could be substantial: while most regular credit cards charge around 20% in interest, the cards listed below offer rates that can be half that, or less. Some low-interest cards even come with attractive balance transfer promotions that will allow you to pay down debt at a greatly reduced rate for a limited time. To find out which have the best rates, perks and promotions, read on for our list of the best low-interest credit cards in Canada.
Why low-interest cards are a good option right now
A new report suggests an increasing number of Canadians are seeing their credit card balances balloon as the cost-of-living crisis and higher interest rates eat into household budgets. A TransUnion report published Tuesday said the number of Canadians paying only the minimum monthly amount on their credit card rose eight basis points to 1.3% in the first quarter compared with last year.
Read the full article: “Canadian consumer debt: How we’re paying for our credit cards”
At a glance: The MBNA True Line Gold Mastercard has a regular purchase interest rate of 10.99%—that’s around half of what’s on a typical credit card. Plus, the $39 annual fee is manageable.
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MBNA True Line Gold Mastercard
- Annual fee: $39
- Purchase interest rate: 10.99%
- Welcome offer:
- Earn rates: None
- Annual income requirement: None
Pros
- Get up to nine authorized users for free.
- When you rent a car from Budget or Avis, you’ll save a minimum of 10% off the base rates.
Cons
- This credit card doesn’t offer much in the way of perks and benefits, and it does not have points or cash back rewards.
At a glance: The Flexi Visa from Desjardins credit union offers a low 10.90% interest rate. Plus it has perks like limited travel insurance, up to $1,000 in new mobile device insurance, and the ability to pay for larger purchases in monthly instalments.
Flexi Visa
- Annual fee: $0
- Earn rates: None
- Interest rates: 10.90% on purchases and cash advances
- Welcome offer: None
- Annual income requirement: None
Pros
- It comes with travel insurance coverage that includes emergency medical, trip cancellation and lost or damaged baggage.
- Use this card to buy a new mobile device, and you get up to $1,000 to cover loss, theft, damage or mechanical failure.
- Access to Accord D through Desjardins, which may get you a quick approval for up to $50,000 in financing.
Cons
- While a pro, the limited travel insurance only covers up to the first three days of your trip. If you are away for for longer, you’ll need to buy extra insurance.
- The interest rate is not the lowest on this list.
At a glance: This low-interest card from MBNA gets you many of the same perks as the MBNA True Line Gold Mastercard—also on this list—with slightly higher interest rates. The advantage of this card is that it comes with no annual fee and a lengthy no-interest balance transfer.
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MBNA True Line Mastercard
- Annual fee: $0
- Purchase interest rate: 12.99%
- Balance transfer offer: You can earn a 0% promotional annual interest rate (“AIR”) for 12 months on balance transfers completed within 90 days of account opening, with a 3% transfer fee. This offer is not available for residents of Quebec.
- Earn rates: None
- Annual income requirement: None
Pros
- The promotional balance transfer rate of 0% is in effect for a full year, which gives you a good amount of time to pay down outstanding debt.
- Add up to nine authorized users to the account for free (depending on which repayment plan you select for your purchase).
Cons
- Does not include insurance or other perks and benefits.
- There’s no annual fee, but you’ll pay slightly higher interest rates than with the comparable MBNA True Line Gold Mastercard.
At a glance: The only American Express card on this list, this no-annual-fee Essential credit card offers a low 12.99% interest rate. It also comes with Amex-related perks like Front-of-the-Line experiences, dining and entertainment, and special offers.
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American Express Essential Card
- Annual fee: $25
- Interest rate: 12.99% on purchases
- Welcome offer: None
- Annual income requirement: $15,000
Pros:
- American Express cards give cardholders access to presale tickets, exclusive events and curated dining and entertainment experiences.
- It also offers Plan It, which allows you to pay off larger purchases in installments for a fixed monthly fee, which is based which repayment plan you select for your purchase.
Cons:
- The included travel insurance is limited to up to $100,000 of accidental death and dismemberment coverage.
- Doesn’t include as many extras of other credit cards, such as these best travel insurance credit cards.
At a glance: With a very reasonable $29 annual fee and a 13.99% interest rate, the BMO Preferred Rate Mastercard will appeal to those who want to stick with a big bank—particularly current BMO customers. The welcome offer sweetens the pot.
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BMO Preferred Rate Mastercard
- Annual fee: $29
- Interest rate: 13.99% on purchases
- Welcome offer: You can earn a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee.
- Annual income requirement: $15,000 (personal or household)
Pros:
- The promotional offer gives you a 0.99% balance-transfer interest rate for nine months and waves the annual fee for your first year.
- Get a BMO Performance chequing account, and you’ll never have to pay the annual fee for the BMO Preferred Rate Mastercard.
- Add another cardholder for free.
Cons:
- This credit card does not offer insurance, rewards or other extras.
- The balance transfer promotion runs for nine months, which is not the longest offer among cards on this list.
At a glance: Unlike most credit cards, the National Bank Synchro Mastercard comes with a variable interest rate. You’ll pay an interest rate of 4% plus the bank’s prime rate (or 10.95%) on purchases. The Synchro credit card has the benefit of a lower interest rate than other cards, but it does carry the risk that your interest rate could rise in the future.
