Low interest Credit cards are a great option for people who cannot pay off their balance every month.
Credit cards with a low interest rate usually offer an APR from 8.99% to 14% compared to typical credit cards APR which ranges from 19.99% to 24.99%. Furthermore, low interest credit cards are the perfect choice for people trying to get rid of debt, finance a large purchase or carry a balance.
In short, here are some of the best low interest credit cards available in Canada.
1. MBNA True Line® Gold Mastercard® Credit Card
The MBNA True Line® Gold Mastercard® offers an incredibly low interest rate of 8.99% per annum on purchases and balance transfers. However, the interest rate on cash advances with this card is 24.99% which is relatively high. This card has an annual fee of just $39, and it’s an excellent option for people who don’t quite have the cash to purchase a more expensive item.
Furthermore, it comes with seven types of purchase and travel insurance in case you need it.
2. HSBC +Rewards Mastercard
HSBC +Rewards Mastercard is a unique credit card that offers perks as well as low-interest rates. There are competitive interest rates on purchases, balance transfers, and cash advances – with 11.9% on all.
In addition to its low interest rate, HSBC’s credit card is an all-in-one solution for those who do not want a bulky wallet filled with multiple cards.
With an annual fee of $25, it offers a good combination of perks, interest rates, and fees.
3. Scotiabank Value Visa card
The Scotiabank Value® Visa* Card offers a competitive interest rate of 12.99% on purchases, balance transfers, and cash advances. These extremely low rates are uncommon and can save you hundreds of dollars in interest every year.
That’s not all. Scotiabank® Value Visa Card is one of the best credit cards in Canada for balance transfers.
For the first six months, the Scotiabank value visa card offers an interest rate of 0.99% on balance transfers.
4. National Bank Syncro Mastercard
National Bank Syncro Mastercard has one of the most competitive interest rates in Canada. This credit card offers 12.9% on balance transfers and cash advances and 8.9% on purchases.
The National Bank Syncro Mastercard has variable interest rates. That is, the card’s rates vary with prevailing prime rates. The National Bank has the right to increase these rates if its prime rate changes.
The annual fee for this card is $35, but there are no charges on supplementary cards. This card is accessible to many Canadians because it has a low minimum credit limit of $500 and no minimum income requirement.
In conclusion
A Low interest credit card is a great option to finance a big purchase.
Low interest credit cards, as their name implies, have below-average interest rates (for example, 8.99% versus the usual 19.99%). That is, if you can’t pay off your balance in full, you will owe less interest. As a result, you can save hundreds of dollars every year with low interest credit cards, depending on your balance.