Typically, the credit card interest rate in Canada is between 19.99% to 22.99%. This can be a lot if you are not able to pay off your credit card balance monthly.
If you want to make a large purchase, tend to carry a balance each month, or are looking to pay off your credit card debt, a low-interest credit card is a good option to look into.
This review compares the top 10 best low-interest credit cards in Canada, including Scotiabank, BMO, TD, and RBC. We take a look at the low interest rates, top benefits, and more.
Here are the top best-rate credit cards in Canada.
Scotiabank Value Visa Card
The Scotiabank Value Visa Card has a low interest rate of 12.99% on purchases, cash advances, and balance transfers.
There is a $29 annual fee; however, it is waived in the first year. You don’t pay anything for supplementary cards, and the minimum credit limit is $500.
This card does not include any cash back or rewards options, but it’s the price you pay to get a low interest rate.
You also have the option to add basic or comprehensive insurance coverage for an additional fee.
To qualify, you must earn a minimum of $12,000 per year, be a Canadian citizen or resident, the age of majority, and have not declared bankruptcy in the past 7 years.
Scotiabank Value Visa Card
Welcome offer: Enjoy a 0% balance transfer rate for the first 6 months.
Interest rates: 12.99% for purchases, balance transfers, and cash advances.
Annual fee: $29 (waived in first year)
National Bank Syncro Mastercard
The National Bank Syncro Mastercard has a 4% plus the prime rate or a minimum of 8.90% interest rate on purchases.
For cash advances and balance transfers, the interest rate is 8% plus the prime rate or a minimum of 12.90%.
For a $35 annual fee, you get low interest rates plus a few other benefits, including purchase protection and extended warranty insurance.
It also includes Mastercard’s Zero Liability Policy and Priceless Cities experiences.
To apply, you must be a Canadian resident and have reached the age of majority in your province or territory.
BMO Preferred Rate Mastercard
This BMO low-interest credit card has a 12.99% interest rate for purchases and 15.99% for cash advances.
There is a $20 annual fee, but you can add another cardholder for free.
BMO has a welcome offer where you can get a 0.99% introductory interest rate on balance transfers for the first nine months of card membership with just a 2% transfer fee. Additionally, they’ll waive the $20 annual fee.
The BMO Preferred Rate Mastercard includes extended warranty and purchase protection along with 24/7 support anywhere in the world.
To be eligible, you must be the age of majority in your province or territory and have not declared bankruptcy.
HSBC +Rewards Mastercard
The HSBC +Rewards Mastercard is one of the best low interest credit cards, allowing you to earn points on your purchases as well as have a low interest rate.
The annual interest rate on purchases, cash advances, and balance transfers is 11.9%. There is a $25 annual fee, and each supplementary card costs $10 yearly.
With the HSBC Plus Rewards Program, you earn 2 points for every $1 spent on dining and entertainment purchases and 1 point for every $1 spent on everything else.
This credit card also includes insurance coverage and price protection services.
There is no minimum annual income requirement, but you must be a Canadian resident and the age of majority to apply.
MBNA True Line Mastercard
The MBNA True Line Mastercard is a low interest credit card with no annual fee.
There is a low interest rate of 12.99% on purchases, balance transfers, and accessing cheques; however, the cash advance interest rate is a whopping 24.99%.
MBNA offers a payment plan where you can pay for purchases over $100 with three payment term options of 6, 12, or 18 months.
To apply, you must be a Canadian resident and have reached the age of majority.
CIBC Select Visa Card
The CIBC Select Visa Card has a $29 annual fee, which is rebated in the first year. Each additional card (up to 3) costs $0.
The interest rate for both purchases and cash advances is only 13.99%.
CIBC has a generous welcome bonus of paying 0% interest for up to 10 months when you transfer your credit card balance from another card. Just pay a 1% transfer fee.
$100,000 Common Carrier Accident Insurance is included with this card, and you have the option to add a few other insurance benefits.
To qualify, you must make a minimum of $15,000 per year, be a Canadian resident, and be the age of majority in your province or territory.
TD Emerald Flex Rate Visa
One of the best TD credit cards with a low interest rate, the TD Emerald Flex Rate Visa Card costs $25 per year.
The interest rate on purchases and cash advances is the TD prime rate + 4.50% to 12.75%.
You have the option to purchase Travel Medical Insurance, Trip Cancellation, and Trip Interruption Insurance. With this TD low-interest credit card, you also earn 50% more Stars at participating Starbucks stores.
Like MBNA, TD also offers payment plans where you can turn purchases of $100 or more into 6, 12, or 18-month payment plans.
To qualify, you must be a Canadian resident and have reached the age of majority in your province or territory.
RBC Visa Classic Low Rate Option
This RBC low-interest credit card has a low $20 annual fee, with each additional card costing $0. The purchase and cash advance interest rate is 12.99%.
The RBC Visa Classic Low Rate Option credit card includes purchase security and extended warranty insurance, and zero liability protection.
Using this card, you save on fuel at Petro-Canada, earn more points at Rexall, and get a 3-month complimentary DoorDash DashPass subscription.
To apply, you just need to be a Canadian resident who has reached the age of majority.
American Express Essential Credit Card
The American Express Essential Credit Card is one of the best lowest interest credit cards with no annual fee for the primary and all other cardholders.
The annual interest rate is 12.99% on purchases and cash advances if you make your minimum monthly payments on time.
$100,000 Travel Accident Insurance, Buyer’s Assurance and Purchase Protection Plan are all included.
You don’t earn any points with this card, but you get access to American Express Experiences, as with all other American Express credit cards.
To apply, you just need to be a Canadian resident with a Canadian credit file and have reached the age of majority in your province or territory.
Capital One Low Rate Guaranteed Mastercard
The Capital One Low Rate Guaranteed Mastercard is just as the name says – you are guaranteed approval as long as you meet the following conditions:
- You’re the age of majority in your province or territory
- You don’t have an existing or pending Capital One account
- You haven’t applied for a Capital One account within the past 30 days
- You haven’t had a Capital One account that was not in good standing within the last year
This credit card has one of the highest interest rates for a low-interest credit card. The purchase and balance transfer rate is 14.9% and 21.9% for cash advances.
There is a $79 annual fee, and security funds may be required, depending on your financial status.
As costly as it is, this credit card includes everyday benefits such as a price protection service, purchase assurance, and extended warranty.
It also includes travel benefits like baggage delay insurance, travel assistance, common carrier travel accident insurance, and a car rental collision or loss damage waiver.
The Top 5 Low-Interest Credit Cards – Compared
This table compares the top 5 lowest-interest rate credit cards on this list.
|Credit Card||Annual Fee||Purchase Interest Rate||Funds Advance Interest Rate||Benefits||Eligibility Requirements|
|Scotiabank Value Visa Card||$29||12.99%||12.99%||N/A||Minimum annual income of $12,000 and must not have declared bankruptcy within the past 7 years|
|BMO Preferred Rate Mastercard||$20||12.99%||15.99%||Extended warranty and purchase protection||Must not have declared bankruptcy in the past 7 years|
|HSBC +Rewards Mastercard||$25||11.9%||11.9%||Earn 2 points for every $1 spent on dining and entertainment purchases and 1 point for every $1 spent on everything else. Also includes insurance coverage and price protection services||N/A|
|American Express Essential Credit Card||12.99%||12.99%||$100,000 Travel Accident Insurance, Buyer’s Assurance, and Purchase Protection Plan||N/A|
|RBC Visa Classic Low Rate Option||$20||12.99%||12.99%||Purchase security and extended warranty insurance, and zero liability protection||N/A|
Is a Low-Interest Credit Card For You?
If you have a high monthly balance, want to make a large purchase, or have a lot of debt, a low-interest credit card is one of the best options for paying off your balance.
Typically, these credit cards don’t have a high annual fee or interest rate. When you pay off your credit card debt, the majority of that money is going towards your balance, not interest or high fees.
However, if you don’t carry a large balance and are good about paying off your cards, you might be better off opting for a different credit card with more insurance benefits and earning potential.
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