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 the 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 2020

Card Interest Rate Annual Fee
American Express Essential Credit Card 8.99% No
Tangerine Money-Back Credit Card 9.99% No
Scotiabank Value® VISA* card 12.99% $29
Most Popular
Tangerine Cash Back Credit Card

Specification: Tangerine Cash Back Credit Card

Balance Transfer Promo Rate 1.95% for 6 Months
Annual Fees $0
Purchase Interest Rate 19.95%
Balance Transfer Regular Rate 19.95%
Cash Advance Rate 19.95%
Get 2% back in up to 3 categories of your choice
Most Popular
Scotiabank Value® Visa* Card

Specification: Scotiabank Value® Visa* Card

Annual Fees $29
Purchase Interest Rate 12.99%
Balance Transfer Regular Rate 12.99%
Cash Advance Rate 12.99%

We featured 3 of the best low-interest credit cards in 2020 so you can easily compare them and choose the perfect fit for you.

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 2020. 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.

Compare More American Express Credit Cards

Tangerine Money-Back Credit Card

  • Interest rates as low as 9.99%.
  • No annual fee.
  • Additional benefits- Apple pay, rental car damage or collision waiver benefit.
  • NO charges till the first 21 days.
  • Around-the-clock security and warranty extension.
  • 5% decrease in standard rate when 12 full payment paid in time

Compare More Tangerine Credit Cards

Scotiabank Value® VISA* card

  • Interest Rate: 12.99%
  • Annual Fee: $29
  • Sign-Up Bonus: Special 0.99% introductory interest rate on Balance transfers for the first six months†

Compare More Scotiabank Credit Cards

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.

Conclusion on Low-Interest Cards

You can’t always pay the balance on your credit card every month because there are always unexpected things that come up in life. If you are likely to carry a balance on your credit card, getting a Low-Interest Credit Card could help you. Compare and find the best Low-Interest Credit Card that helps you pay off your principal balance quicker and also save on hefty interest charges.

Register New Account
Reset Password