Best Low-Interest Credit Cards Canada

Getting a low-interest credit card is a smart idea especially if you are trying to get rid of high-interest credit card debt. Many Canadians now are turning towards low-interest credit cards to transfer the balance and even finance a new purchase.

Why Should You Get a Low-Interest Credit Card?

Low-interest credit cards are definitely better than a personal loan or even a high-interest credit card. And this post has been put together to help you find the best low-interest credit cards available in the Canadian market. Of course choosing the best low-interest credit card isn’t easy. You have so many options to choose from and there are tons of details that you need to look at closely.

Which card has the best promotional interest rate? Is there a credit card with no annual fee? Are low-interest credit cards secure and reliable? Do I have to pay varying interest rates? Well, there’s no one size fits all low-interest credit card. Here we shall look at some of the best options you have. Remember, you need to have a closer look at the credit card conditions before agreeing to get one. Do check the annual fee, transfer fee and other restrictions your credit card issuer might have.

Your life will get a lot easier when you own a low-interest credit card. Here are the top 3 cards that deserve a place in your wallet.

No-Fee Scotiabank Value Visa Card

This card carries low-interest rates and no annual fee. The interest rate you are required to pay on purchases, balance transfers, and cash advances is set at 16.99%. You can benefit from the low introductory annual interest rate of 3.99% for balance transfers and cash advances for the first 6 months.

The standard variable annual interest rate for purchases, balance transfers as well as cash advances is just 11.99%. To enjoy low regular interest rates, you only have to pay a modest annual fee of $29.

MBNA Platinum Plus MasterCard

 This MBNA credit card is unique because the interest rate you will pay depends on your credit score. For example, if you have an excellent credit history, you can be offered interest rate as low as 5.99%. Furthermore, there is no annual fee and the interest charged on purchases and balance transfer is just 9.99%.

If you’re looking for a low interest credit card, this might be a good choice. What’s better is that you can enjoy additional features such as exclusive MBNA platinum card benefits; travel insurance perks, and purchase protection coverage.

 

Scotiabank Value Visa Card

This Scotiabank credit card appeals to Canadian residents who are looking for low interest cards. The card interestingly comes in two versions. While VISA cards are not known for their long list of perks and benefits, they do come in handy if you want to take care of balance on your high-interest credit cards.

Both cards have 1% balance transfer fee when promotional interest rates are in effect. You also get interested-free grace period of 21 days on new purchases if you make your monthly due payments in full. The variable interest rate for purchases is 11.99% for Value Card and 16.99% for No-fee card. You can get discounts up to 20% from AVIS car rentals by presenting your card and using it to make full payment.

 

What Card Should I Go for?

If you carry a hefty balance, it makes no sense to go for low-interest credit cards with rewards. After all if you are spending 20% on interest, you won’t really benefit from small rewards you get. What most people fail to understand is that if you carry the balance on your card for 2 consecutive payments, you are required to pay a huge amount as compounded interest.

A smart thing to do at this point is to get a no annual fee, low-interest credit card and keep it in your wallet for emergency situations. Remember, keeping a low-interest credit card in your wallet costs nothing but you can save yourself from a great deal of trouble.

An important thing to remember here is that most Canadian banks do not offer fixed interest rates on credit cards with no annual fee. Scotiabank Value Card mentioned above is a good option because you do get a chance to enjoy 11.99% interest rate by paying a small annual fee.

Why You Should Stay Away from Personal Loans

Personal loans are risky and they should be the last option when you are trying to repay your high-interest credit card debt. Of course, banks advertise low-interest rates for personal loans but things are not as simple as they look. If you visit a bank branch to apply for a personal loan, you are required to show your proof of income. Furthermore getting approved for a personal loan is also a long process.

Low-interest credit cards mentioned here are way better than personal loans because you know the interest rate what you will be paying and you can plan your monthly payments accordingly. MBNA cards at this point in time are unparallel in the market. In fact, you won’t get a better deal when it comes to 12 monthly billing cycles.

That’s right. When you apply for MBNA card, just avoid making new purchases and use the card for balance transfer. Remember, you should use the 0% interest feature for first twelve billing months to your advantage and stick with no additional purchases mantra until your debt is completely paid down.

The bottom line is that low-interest credit cards can help you get out of debt quite easily only if you use them right. To know more about the cards or check out other credit card options you have, don’t forget to use our low-interest credit card comparison tool.