Best Low Interest Credit Cards

In today's day and age Rewards credit cards are a hot topic. However, your failure or success with them depends on one critical aspect: your capacity to pay off the balance each month. If you fail to do so, you will be charged interest that can dilute any rewards benefits in a blink of an eye.

Rewards vs Low-Interest Credit Cards

These rewards credit cards are an ideal option for those who have a habit of cleaning their credit card slates each month, but are not recommended for those who tend to carry their balance in the next month. Luckily, there is another type of credit that is more suitable for people like these, and that is a low-interest credit card. When talking about the best low-interest credit card, we look for an interest rate that is way lower than your average rate offered by credit cards, along with other benefits for a minimal fee.

Our Picks for The Best Low-Interest Credit Cards in 2018

We featured 3 of the best low-interest credit cards in 2018 so you can easily compare them and choose the perfect fit for you.

1. American Express Essential Credit Card

This credit card is an excellent place to get started if you are looking to enjoy a low rate of interest. With the help of this card, you will have to pay just 8.99% on any purchases that you make that are not paid off even after the 21-days grace period.

In addition to that, you will also have the chance to benefit from a special rate of balance transfer i.e. 1.99% for 6 months, and 8.99% after that time has elapsed. These two features make this credit card an excellent option for anyone who wants to get serious about completely paying off their credit card accruals in 2018.

To apply for the American Express Essential credit card, you need to be a permanent Canadian resident and be earning a minimum income of $15,000 each year. When you are shopping with this card, you will be able to avail an extended warranty, zero liability coverage, and purchase assurance. Lastly, when you use this card for travel expenses, you will also be able to benefit from travel insurance.

2. MBNA Platinum Plus by MasterCard

If you have a store card, line of credit card loan, or a credit card already, then the MBNA MasterCard can assist you in cutting, consolidating and reducing your arrears with Canada's top standing balance transfer deal of zero percent for one year, with zero annual charges.

You will also have the option of consolidating all your credit or store cards to the MBNA card at 0% for a year - zero interest, one payment. There are zero yearly card fees, but you are required to pay 1% transfer charges on each transfer, which is still quite low when compared to some that go as high as 3%.

On the other hand, MBNA also enables you to transfer cash in your account at 0% for a year also. You can utilize that 0% money for practically any reason - just like cash. It is initially a 0% cash deposit in another term.

Interest Rate

19.99%

Annual Fee

No Annual Fee

Balance Transfer: 0%†

Cash Advance: 24.99%

Sign-up Bonus

0% Balance Transfer for 12 months

Whether you are looking to avoid high interest on credit card loan, pay for a new purchase, or carry a small balance once in a while, low-interest credit cards are your best bet - way better in comparison with a personal loan or another line of credit - and much better than a rewards credit card.

After comparing all the low-interest credit cards present today in the Canadian market, we were able to deduce that some cards might offer lower or the same rate of interest for a short-term promotional periods, while others for a yearly fee, and others with a changing interest rate, and still others with risk-based Annual Percentage Rate.

No one beat zero annual charges 5.99% fixed rates for brand new purchases, no one beat zero percent for one-year balance transfers, and no one beat zero percent for a year cash advances left in your checking account.

With zero yearly fees combined with Canada's best interest rates, the aforementioned credit cards are a must-have. Not one of these cards comes with a yearly charge, which means there is no cost involved as long as carrying them as your backup is concerned.

Best Low-Interest Credit Cards - All You Need to Know

If you are someone who carries a balance into the next month, keeping a rewards credit card doesn't make sense at all. You will only be wasting away around 20% in interest every year, to save perhaps 2% in rewards, which isn't a sensible deal. Even if you succeed in carrying the balance for two statement periods, it'll end up costing you more than 3.5% in terms of accumulated interest.

If you are aware of the fact that you sporadically do not pay down your whole credit card bill, then the ideal option is to get a low-interest and no-fee credit card. Just keep it in your wallet as a safety net for rainy days - it costs you absolutely nothing but will help you save a ton of money.

For whatever reason, the majority of banks do not offer fixed interest rates as low 5.99% - 9.99% without yearly fees. BMO, CIBC, Scotia, and RBC offer you low-interest cards with rates as cheap as 11.99%; however, they do come with an annual fee of $20 to $29. TD and RBC have low prime plus credit cards of 1.25% - 12.75% or 4.99% - 8.99%. You are not aware if you will get a 7.69% rate or 15.45% prior to applying. The drawback is, even if you are dissatisfied with the rate offered to you; you will still have to pay the yearly fees if you get approved.

With an increasing number of personal loans available in the market today, though they promote their rates as minimal as 5.9%, they end up averaging higher than the 12% range. In addition to that, they ask you to send evidence of your identity and income for verification. Maybe it is way more efficient as compared to visiting the branch for the application of a line of credit, but it surely not simpler than applying online.

For that reason, we are fans of the American Express Essential card. There are no yearly fees involved, making it an affordable option to have whether you require it sooner or later. Plus, it has a fixed rate of 8.99% - this helps you be aware of what you are getting into before the application.

MBNA's zero percent for one year rate is also incomparable in the Canadian market. Whether you are seeking to move your high-interest credit card loan or you are trying to access cash at zero percent, no other issuers at present day offer the same rate.

Keep in mind that you shouldn't make any brand new purchases on your balance card - only use it exclusively for balance transfers. You will be paying 22% in interest on new purchases, and when you try paying off the high-interest balance, only part of your repayment will contribute to your new purchase. The remaining amount will go towards your present balance - and you do not get to choose. The result will be that your new high-interest rate balance will be there until your low-interest rate balance gets completely paid off.

So, why should you make use of a personal loan or credit line to clear off your credit card accruals when you can easily have access to 0% rates? Doesn't make much sense to do otherwise. We suggest balance transfers as the best technique to clear your higher-interest store cards, credit card or fixed-payment debts that you may have accrued.




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12 Results

Interest Rate

11.99%

Annual Fee

$29

Balance Transfer: 1.99% introductory

Cash Advance: 11.99%

Sign-up Bonus

Special 1.99% introductory interest rate on Balance transfers for the first six months†

Interest Rate

16.99%

Annual Fee

No Annual Fee

Balance Transfer: 16.99%

Cash Advance: 16.99%

Sign-up Bonus

3.99% Introductory interest rate on Balance Transfers for the first six months†


Interest Rate

19.99%

Annual Fee

No Annual Fee

Balance Transfer: 0%†

Cash Advance: 24.99%

Sign-up Bonus

0% Balance Transfer for 12 months

Interest Rate

19.95%

Annual Fee

No Annual Fee

Balance Transfer: 3% of amount transferred**

Cash Advance: 19.95%

Sign-up Bonus

3% Balance Transfer & Earn 2% Money-Back Rewards on purchases

Interest Rate

11.9%

Annual Fee

$20

Balance Transfer:

Cash Advance: 11.9%

Sign-up Bonus

N/A

Interest Rate

0%

Annual Fee

$6.95

Balance Transfer:

Cash Advance:

Sign-up Bonus

N/A

Interest Rate

13.99%

Annual Fee

$29

Balance Transfer:

Cash Advance: 13.99%

Sign-up Bonus

N/A

Interest Rate

19.99%

Annual Fee

$35 USD

Balance Transfer:

Cash Advance: 22.99%

Sign-up Bonus

N/A

Interest Rate

9.99%

Annual Fee

No Annual Fee

Balance Transfer: 9.99%

Cash Advance: 24.99%

Sign-up Bonus

Interest Rate

Prime + 1.5%

Annual Fee

No Annual Fee

Balance Transfer: Prime + 1.5%

Cash Advance: Prime + 1.5%

Sign-up Bonus

N/A

Interest Rate

11.99%

Annual Fee

$20

Balance Transfer: 11.99%

Cash Advance: 11.99%

Sign-up Bonus

N/A

Interest Rate

3.60% to 9.60%

Annual Fee

$0

Balance Transfer:

Cash Advance:

Sign-up Bonus

N/A

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