These days, it’s important to make every dollar count. Consumers need to be smart with their money during difficult times that have put a strain on everyone. So when it comes to credit cards, cards with low interest rates have become very popular with Canadian consumers that want to save money.

Low interest credit cards are especially good for consumers with heavy credit card debt that carries over month to month. Instead of charging rates between 19% to 25%, a low interest credit card will usually only charge 15% at most.

To help save you money, a wide selection of credit cards with low interest rates have become available to Canadian consumers. There are many cards to choose from, but which one is best for you?

To help you figure this out, here’s a list of the best low interest credit cards in Canada for 2021.

CIBC Select Visa Card

The CIBC Select Visa Card features competitive advantages that make it a great option to consider. This card features a 0% introductory interest rate on balance transfers during the first 10 months†.

You’ll only have to pay a 1% transfer fee when you transfer your balance from another card to the CIBC Select Visa Card.

  • This balance transfer offer is only available at the time of your online application
  • Transfer up to 50% of your assigned credit limit.

As well, this card features a first-year annual fee rebate for you and up to 3 Authorized Users! With its annual fee of $29, this low interest credit card is a great financial option to consider.

MBNA True Line® Gold Mastercard®

The MBNA True Line® Gold Mastercard® credit card gives users the advantage of a low interest rate along with additional rewards. This makes it a great all-round choice for your credit card.

This card offers an 8.99% standard interest rate on purchases, and a 24.99% interest rate on cash advances. Not only that, users of this card have access to these benefits:

  • Save with Avis Rent A Car and Budget Rent A Car
  • Extended warranty benefits
  • Purchase assurance

And with its $39 annual fee, this card makes for an affordable option to help you with your finances.

National Bank Syncro Mastercard

The National Bank Syncro Mastercard impresses with its low interest rate and extra rewards. This credit card features these low rates:

  • 90% (min), or Prime rate + 4% on purchases
  • 90%, or Prime rate + 8% on balance transfers and cash advances

What’s more, for an annual fee of $35, users can also take advantage of this card’s extended warranty and purchase protection in case of theft or damage.

BMO Preferred Rate Mastercard

The BMO Preferred Rate Mastercard is your way to enjoy BMO’s biggest savings and lowest available interest rate.

This card features a welcome offer that gives new users a 3.99% introductory interest rate on Balance Transfers for 9 months with a 1% transfer fee. What’s more, new users won’t have to pay the $20 annual fee during the first year.

Extra rewards offered to cardholders include:

  • Worldwide acceptance at over 30 million locations
  • Zero Dollar Liability that protects against unauthorized credit card use
  • Free extended warranty and purchase protection

MBNA True Line® Mastercard®

The MBNA True Line® Mastercard® stands out on this list for being the only credit card that offers a low interest rate at no extra cost. This no-fee credit card features a 12.99% interest rate on purchases and $0 annual fee.

In addition to its low rate on purchases and lack of an annual fee, users will be able to save by accessing exclusive promotions with Avis Rent A Car and Budget Rent A Car.

How can a low interest credit card help me?

A low interest credit card can help in three basic ways:

  1. Lower interest payments: Although the best policy is to pay off your credit card balance at the end of each month, this may not be possible for some people. In order to make your interest payments smaller, consider choosing a low interest credit card.
  2. Lower annual fees: Credit cards that offer many rewards can sometimes end up having higher annual fees. By contrast, low interest credit cards usually have lower annual fees compared to their competition, making them a great choice to consider.
  3. Debt relief: Canadians facing a heavy debt load have the opportunity to transfer their outstanding balances to a low interest credit card as a way to get back into the green.

How much can I save with a low interest credit card?

The difference between a traditional credit card and a low interest credit card doesn’t seem to be very much in terms of percentage points. And yet, a small difference can mean a world of difference that translates into hundreds of dollars of savings for you.

Let’s use a hypothetical situation where a person with a debt of $4,000 can only afford to make monthly payments of $300. To illustrate this example, we’ll compare a traditional credit card to the MBNA True Line® Mastercard® whereby the former has an interest rate of 19.99%, while the latter is rated at 12.99%.

Despite being just 7 percentage points apart, the low interest credit card ends up being the clear winner with savings of $217.

Traditional credit card MBNA True Line® Mastercard®
Interest rate 19.99% 12.99%
Amount paid per month $300 $300
Months to pay off debt 16 15
Total interest paid $561 $344

Give yourself a competitive advantage; switch to a low interest credit, and start saving on your credit card bill!

Learn more about which credit cards can help by reading our blog! We’ll tell you how to save money using credit card rewards, how to get free travel for years to come, and how to get free groceries just by using a credit card!

Want to find out even more? Check out our comparison charts to get a detailed analysis of how each credit card compares with the competition. Or, sign up to become a RatemyRewards.ca member and get exclusive deals and updates for free!

†Conditions Apply

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