Bank card rates of interest aren’t all the identical. If you happen to carry a stability, or when you anticipate to tackle debt that may take a while to repay, you may wish to contemplate a low-interest bank card. The financial savings may very well be substantial: whereas most common bank cards cost round 20% in curiosity, the playing cards listed under provide charges that may be half that, or much less.
Bank card comparability instrument
Evaluate your choices with our interactive instrument and get a way of how a lot you would save on curiosity funds relying on the dimensions of your stability.
Why belief us
MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial workforce of educated journalists works intently with main private finance specialists in Canada. That will help you discover the most effective monetary merchandise, we examine the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Study extra about our promoting and trusted companions.
Why low-interest playing cards are a superb choice proper now
A brand new report suggests an growing variety of Canadians are seeing their bank card balances balloon because the cost-of-living disaster and better rates of interest eat into family budgets. A TransUnion report printed Tuesday stated the variety of Canadians paying solely the minimal month-to-month quantity on their bank card rose eight foundation factors to 1.3% within the first quarter in contrast with final 12 months.
Learn the complete article: “Canadian client debt: How we’re paying for our bank cards”
Finest low APR bank cards, in additional element
At a look: The MBNA True Line Gold Mastercard has a daily buy rate of interest of 10.99%—that’s round half of what’s on a typical bank card. Plus, the $39 annual price is manageable.
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MBNA True Line Gold Mastercard
Annual price: $39
Low rate of interest: 10.99%
Welcome provide: This card doesn’t have a welcome provide right now.
Card particulars
| Rates of interest | 24.99% on money advances, 13.99% on stability transfers |
| Revenue required | None specified |
| Credit score rating | 660 or increased |
At a look: The Flexi Visa from Desjardins credit score union affords a low 10.90% rate of interest. Plus it has perks like restricted journey insurance coverage, as much as $1,000 in new cellular system insurance coverage, and the power to pay for bigger purchases in month-to-month instalments.
Flexi Visa
Annual price: $0
Low rates of interest: 10.90% on purchases and 12.90% on money advances
Card particulars
| Rates of interest | 10.90% on purchases and 12.90% on money advances |
| Revenue required | Not specified |
| Credit score rating | Not specified |
At a look: This low-interest card from MBNA will get you most of the identical perks because the MBNA True Line Gold Mastercard—additionally on this checklist—with barely increased rates of interest. The benefit of this card is that it comes with no annual price and a prolonged no-interest stability switch.
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MBNA True Line Mastercard
Annual price: $0
Low rate of interest: 12.99%
Steadiness switch provide: earn a 0% promotional annual rate of interest (“AIR”) for 12 months on stability transfers accomplished inside 90 days of account opening, with a 3% switch price. This provide will not be accessible for residents of Quebec.
Card particulars
| Rates of interest | 24.99% on money advances, 17.99% on stability transfers |
| Revenue required | None specified |
| Credit score rating | 660 or increased |
At a look: The one American Specific card on this checklist, this no-annual-fee Important bank card affords a low 12.99% rate of interest. It additionally comes with Amex-related perks like Entrance-of-the-Line experiences, eating and leisure, and particular affords.
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American Specific Important Card
Annual price: Annual price: $25
Low rate of interest: 12.99% on purchases
Welcome provide: None
Card particulars
| Rates of interest | 12.99% on money advances |
| Revenue required | $15,000 per 12 months |
| Credit score rating | 725 or increased |
At a look: With a really cheap $29 annual price and a 13.99% rate of interest, the BMO Most popular Price Mastercard will attraction to those that wish to keep on with an enormous financial institution—significantly present BMO clients. The welcome provide sweetens the pot.
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BMO Most popular Price Mastercard
Annual price: $29
Low rate of interest: 13.99% on purchases
Welcome provide: get a 0.99% introductory rate of interest on stability transfers for 9 months with a 2% switch price
Card particulars
| Rates of interest | 15.99% on money advances, 15.99% on stability transfers |
| Revenue required | $15,000 (private or family) |
| Credit score rating | 660 or increased |
At a look: Not like most bank cards, the Nationwide Financial institution Synchro Mastercard comes with a variable rate of interest. You’ll pay an rate of interest of 4% plus the financial institution’s prime charge (or 10.7%) on purchases. The Synchro bank card has the good thing about a decrease rate of interest than different playing cards, however it does carry the danger that your rate of interest might rise sooner or later.
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Nationwide Financial institution Syncro Mastercard
Annual price: $35
Low rate of interest: 4% + prime (10.7%) on purchases. Minimal of 8.9%
Welcome provide: This card doesn’t have a welcome bonus right now.
Card particulars
| Rates of interest | 8% + prime (14.7%) on money advances, 8% + prime (14.7%) on stability transfers (notice that the minimal buy rate of interest for the cardboard is 8.9% and the minimal stability switch and money advance charge is 12.9%) |
| Revenue required | None specified |
| Credit score rating | 660 or increased |
Our methodology: How we decide the most effective playing cards
The MoneySense editorial workforce selects the most effective bank cards by assessing the worth they supply to Canadians throughout numerous classes. Our greatest low-interest bank cards rating relies on a comparability of an in depth checklist of card particulars and options, together with competitively-low rates of interest, annual charges and welcome affords. Now we have additionally thought-about the professionals and cons of every card that will help you decide which of them finest fit your monetary wants. Our rankings are an unbiased supply of data for Canadians. The addition of hyperlinks from affiliate companions has no bearing on the outcomes. Learn extra about how MoneySense makes cash.
Incessantly requested questions
Most bank cards provide a hard and fast rate of interest, that means that there’s a single, unchanging proportion charged in your purchases. With a variable charge create card, however, the speed you might be charged on unpaid balances can change primarily based on a number of elements.
Sometimes, the speed is tied to the prime charge, which fluctuates, with an extra mounted proportion on high. For instance, a card may cost the financial institution’s prime charge plus 5%. Additionally, your credit score rating performs a task in figuring out how low of a charge you may get.
There’s a easy purpose to think about a variable charge card: You probably have a wonderful credit score rating, you would land among the lowest charges accessible within the bank card market. Nevertheless, when you don’t have an ideal credit score rating, you wish to maintain issues easy or want a card that additionally comes with an ideal stability switch promotion, it’s possible you’ll wish to contemplate one with a hard and fast charge.