Best Low-Interest Credit Cards in Canada

Best Low-Interest Credit Cards in Canada

Who should get a Low-Interest Credit Card?

Can’t pay your credit card balance every month? Fallen into credit card debt? If you answered yes to either of these, a low-interest card may be able to save you the money in interest charges. Because of how quickly credit card interest compounds and accumulates, it makes it harder to pay the card off quickly. In fact, if you pay just the minimum balance on a card, it could take you years to pay off a few thousand dollars of credit. Transferring a balance to a low-interest credit card may give you the interest savings you need to pay off those pesky bills. So if your credit card debt is creeping up on you or you are carrying a balance month-to-month, you might be able to benefit from a low-interest card. Another benefit of these cards is that they don’t usually have any kind of rewards or points programs attached to them. How this is a benefit? Many credit card experts will tell you that these rewards or points programs will actually encourage spending, and if you are already struggling with debt, this may not be good. So a low-interest card will help you focus on the numbers and get yourself debt free in less time.

Low-Interest Credit Cards

Choosing the ideal credit card for you is a personal decision that is based on various factors and your spending habits.

  • If you’re a frequent traveler, you could opt for a card that gives you travel rewards so you can accumulate points.
  • As a student, you might want a card that carries no annual fees.
  • Users that do not have a good credit rating can choose secured credit cards that can help them build creditworthiness.
  • If you regularly carry high balances each month, you should look for a credit card with Low-Interest rates so you can pay off the balances and get out of debt.
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Benefits of Low-Interest Rate Credit Cards:

  • Ideal for users who cannot clear their balances in full each month, these cards lower the applicable interest rates.
  • You incur low fees each year.
  • You pay lower interest on credit card purchasing, balance transfers, and cash advances

Negatives of Low-Interest Rate Credit Cards:

  • You may not receive many benefits and rewards including travel points and insurance.
  • You could end up incurring high consumer debts because of the low applicable interest.
  • Transferring large balances to Low-Interest credit cards can cost you a fee of 1% of the balance you’re transferring.

Who Should Opt for Low-Interest Rate Credit Cards?

Low-Interest rate credit cards are best suited for users who regularly charge purchases on their credit cards but don’t pay off the balance in full at the end of each month. When using these cards, you can pay back the cost of your purchases without incurring high-interest rates like on other cards. Choose a balance transfer card to pay off a substantial existing balance on your credit card. But, if you always pay your balances in full, then you might want to opt for a card that gives you interest-free days and added benefits like reward points.