The best low-interest credit cards help you save by allowing you put more money directly towards your principal balance and less towards interest. If you’re a credit card user with good credit who carries a balance from month to month rather than paying off your debt in full, a low-interest rate credit card may be the best credit card for you. Read more in our guide below.
The 5 best low-interest credit cards in Canada
Choose your low-interest credit card from the list below based on their purchase interest rates:
The MBNA True Line Gold Mastercard has one of the most competitive interest rates on the Canadian market. You'll only be charged a 10.99% purchase interest rate, and a 13.99% on balance transfers (in addition to a 1% fee). This card is ideal for people who value having a lower interest rate over having credit card rewards or perks.
You'll only have to pay an interest rate of 10.99% on purchases.
You can get a 13.99% interest rate on balance transfers (though you'll have to pay a 1% transfer fee).
You'll be able to order up to 9 additional cards at no extra fee.
Most items you buy on your card are protected against loss and damage for up to 90 days .
You'll get support when you travel with lost tickets and luggage assistance, pre-trip information and legal assistance where necessary.
You'll get double your manufacturer's warranty on consumer goods (up to 1 year) when you purchase them with your card.
You'll have to pay a $39 annual fee to maintain this card.
You'll have to pay a 1% fee on any balance transfers.
You'll be charged 24.99% on cash advances.
This card doesn't come with any rewards or cashback programs.
This card doesn't come with any additional benefits like travel insurance, mobile device protection or roadside assistance.
Please note: All information about MBNA True Line Gold Mastercard has been collected independently by Finder and this card is not available through this site.
With no cash back or rewards points, the Scotiabank Value Visa Card doesn't come with a lot of extra perks, but it can be a great tool for saving money. Get a 0.99% introductory interest rate on balance transfers for the first 9 months. Plus, pay no annual fee in the first year. Apply by October 31, 2025.
Low purchase and cash advance interest rates of 13.99%.
Once the promotional balance transfer period ends, any unpaid balance will incur the low rate of 13.99%.
This card has an annual fee of $29.
No cash back or rewards.
This card has a foreign transaction fee of 2.5%.
Annual Fee
$0 intro annual fee for the first year ($29 thereafter)
Purchase APR
13.99%
Cash Advance Rate
13.99%
Balance transfer APR
0.99% intro for the first 9 months (then 13.99% )
Welcome offer
Get a 0.99% introductory interest rate on balance transfers for the first 9 months. Plus, pay no annual fee in the first year. Apply by October 31, 2025.
Rewards
Get an on-going low interest rate of 13.99% on eligible purchases.
The BMO Preferred Rate Mastercard is a simple, no-frills credit card with a low-interest rate of 13.99% for purchases and 15.99% for cash advances. You won't earn any rewards points or cash back, but this card's low rate can help you save money and pay down your balance faster. Get a rate of 0.99% on balance transfers for 9 months with a 2% transfer fee.
Low APR of 13.99% for purchases and 15.99% for cash advances.
Get a rate of 0.99% on balance transfers for 9 months with a 2% transfer fee.
Purchase Protection, Extended Warranty coverage and Zero Liability protection.
This card has an annual fee of $29.
No cash back or rewards and no extra perks like complimentary travel insurance or car rental benefits.
This card comes with a balance transfer fee of 2%.
This card has a foreign transaction fee of 2.5%.
Annual Fee
$29
Purchase APR
13.99%
Cash Advance Rate
15.99%
Balance transfer APR
0.99% intro for the first 9 months (then 15.99% )
Welcome offer
Get a rate of 0.99% on balance transfers for 9 months with a 2% transfer fee.
The main draw to the MBNA True Line Mastercard is its low purchase interest rate of 12.99% and $0 annual fee. While this card doesn't come with many special perks or a rewards program, you could benefit from a balance transfer rate of 17.99% (with a 3% fee).
The annual fee for this card is $0.
The purchase interest rate is 12.99%.
You'll be charged the relatively low rate of 17.99% on balance transfers.
You can get up to 9 additional cards at no extra fee.
You won't be held responsible for fraudulent charges on your account with Zero Liability insurance.
You'll be charged a 24.99% rate on cash advances.
You'll have to pay a 3% fee on balance transfers.
The low-interest rate on this card replaces rewards or cash back as the main incentive.
You won't get additional benefits like travel insurance, mobile device protection or roadside assistance.
Annual Fee
$0
Purchase APR
12.99%
Cash Advance Rate
24.99%
Balance transfer APR
0% intro for the first 12 months (then 17.99% )
Welcome offer
Get a 0% promotional annual interest rate for 12 months on balance transfers completed within 90 days of account opening.
Please note: All information about MBNA True Line Mastercard has been collected independently by Finder and this product is not available through this site.
We’ve chosen the cards on this page based on a variety of low-interest credit cards available on the market. We’ve narrowed down our top picks by considering the value of interest rates, reward points, annual fees, introductory offers and additional card benefits.
No single credit card will be the best choice for everyone, so compare your options before picking your new card.
What is a low-interest credit card?
A low-interest rate credit card is a card that charges a much lower annual percentage rate (APR) than other credit cards. Interest rates usually fall between 8% and 15% on a low-interest card, which is lower than the interest rate of about 20% you get on most credit cards. Some card issuers determine the low-interest rate you’re eligible for based on your credit history.
Low interest credit cards tend to benefit people who are carrying an outstanding balance on their credit card by helping them save on paying interest.
Example: How much can you save with a low-interest credit card?
Why is it better to have a low-interest rate on a credit card? Let’s take a look at an example. Say you have a credit card with an outstanding balance of $1,000. If you’ve committed to making a monthly payment of $20, your payments would break down like this:
Normal credit card
Low interest credit card
Interest rate
20%
9%
Amount paid towards interest
$17
$7.50
Amount paid towards principal balance
$3
$12.50
Number of months to fully pay off balance
109
63
Using a low-interest credit card would save you around $114 per year on interest payments, and allow you to pay off your debt in a little more than 5 years as opposed to over 9 years.
Will I get rewards with a low-interest credit card?
Most low-interest credit cards don’t come with rewards programs, but some do. That is usually because these cards have no or low annual fees and cater to people who typically carry a balance from month to month (and are looking for some relief from expensive monthly interest payments).
The best reward programs will generally be included with credit cards that have high interest rates and annual fees. If you find a low rate card that does offer rewards, take note that you will most likely only be able to earn rewards or cash back at a slower rate than on a specific rewards credit card.
With this in mind, you should shop around to find a credit card that offers the right balance of rewards, benefits and interest rates for your needs.
How to qualify for a low-interest credit card in Canada
To qualify for a low-interest credit card, you need to have a good to excellent credit score. Without good credit, you’ll likely only qualify for a higher interest rate. You also need to meet the credit card issuer’s minimum income qualifications.
If you don’t qualify for a low-interest rate credit card, you can still save money on interest by paying your credit card balance in full each month. This allows you to completely avoid finance charges and paying interest on your balance.
No or low annual fee. Most low-interest credit cards come with no annual fee or one that is less than $30 per year.
Low APR. You’ll be able to pay your credit card balance off much faster with low-interest payments.
Fraud protection. You’ll typically qualify for fraud protection on all of your purchases.
Cons
No rewards. Most low rate cards don’t offer rewards or allow you to earn cash back on your purchases.
Limited perks. Many low rate cards don’t offer additional “nice-to-haves” such as travel insurance and roadside assistance.
Intro offers expire. Certain cards can be attractive with their 0% or low balance transfer offers – but these promo rates only last for a few months.
How to apply for a low-interest credit card
If you want to apply for one of the low-interest credit cards in the table here, you can submit an online application by clicking the “Go to site” button. During the application, you’ll need to submit some personal details, including your full name, address, contact details, social insurance number (SIN) and birth date.
Before you apply, you should make sure you meet the eligibility criteria for the specific card. Typically, the bare minimum requires that you be a Canadian citizen or permanent resident over the age of 18 (or 19 in some provinces).
Many online credit card applications will give a decision to you within a minute or two after you submit your application. At other times, it may take a few days to learn if you’ve been approved if the credit card issuer needs to collect additional information from you or if information on your application is found to be false.
Mistakes to avoid with low-interest credit cards
A low-interest rate credit card lowers the amount of interest you pay on outstanding credit card balances. But if you’re not careful, you can still make mistakes that hurt your credit rating or get you into debt. Steer clear of these common low-interest credit card mistakes:
Making only the minimum payment. It’s better to pay more than the minimum payment each month. You’ll pay off your balance faster, save money on interest and free up available credit.
Confusing introductory rate and low-interest rate. While an introductory rate is technically a low-interest rate, credit cards with an introductory rate aren’t considered “low-interest rate credit cards”. A credit card with an introductory rate will only have a low-interest rate for a limited amount of time, like six months. After that, the interest rate increases. On a low-interest rate credit card, the low-interest rate is permanent.
Taking out a cash advance. A cash advance is one of the most expensive types of credit card transactions. You could pay a combination of an ATM fee, a cash advance fee and a higher interest rate. Plus, the interest on cash advances starts accruing right away.
Missing two payments in six months. If you miss two consecutive monthly payments, your credit card issuer will likely raise your interest rate to the penalty rate. The penalty rate is the highest interest rate on your credit card. Your minimum payment and finance charges will increase as a result. Your credit card issuer is required to lower your interest rate if you make six consecutive timely payments, but only for your existing balance. Depending on your credit card terms, any purchases you make after the penalty rate became effective may still receive the penalty rate.
How to compare the best low-interest credit cards
There are many low-interest credit cards available in Canada, so choosing the right one is important to get the most out of your card. Here are some of the most important factors to consider to help you find the best low-interest credit card for your needs:
Purchase APR. The lower the APR, the better. If the credit card advertises multiple interest rates, keep in mind that you’ll need to have excellent credit to be approved for the lowest interest rate.
Annual fee. While some low-interest credit cards charge an annual fee, a credit card with no annual fee is a better deal because you can minimize the cost of having the card over the long run. If a credit card has an annual fee, look for other perks that justify paying that fee.
Other fees. Your low-interest credit card may charge fees for certain transactions, like a balance transfer fee or a cash advance fee. You could also pay a foreign transaction fee if you make purchases in a currency other than Canadian dollars. Choose a card that doesn’t impose fees for the transactions you commonly make.
Other perks. A low-interest rate credit card may come with other perks like the ability to earn rewards on purchases, purchase or price protection, extended warranty, car rental insurance and free access to your credit score. Pay close attention to extra credit card benefits, especially if you’re trying to decide between two similar cards.
Compare more low-interest credit cards
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How to lower the interest rate on your credit card
Do you know that many credit card issuers will lower the interest rate on your credit card if you ask? It’s true. Negotiating with your card provider for a lower APR can result in a big financial win for you. Plus, there isn’t really a downside to making the request, as the worst that can happen is you’ll get a “No.”
Here are a few tips to help you navigate your negotiation smoothly.
Know your credit score. The higher your credit score, the better your chances of getting your APR lowered. If your credit score is below 670, you may want to work on it before asking for a rate decrease. The two main ways to increase your score are making on-time debt payments over a long period and keeping your credit utilization low. Learn more about how to check your credit score here.
Find credit card offers from other providers. You can get prequalified for credit cards from certain providers without affecting your credit score. If you’re getting credit card offers in the mail, save them. Simply mention to your provider that you’ve received these offers so you can use them as leverage to negotiate a rate decrease.
Prepare for your call. Before you call your provider, prepare a few talking points. Tell them how long you’ve been a customer for, details on your strong history of repayments and any updates on your income.
Be respectful when speaking to your provider. When you call your provider, it helps to be kind to the representative—they may be more willing to do you a favour simply because you’re polite. If the representative says no, consider asking to speak with a manager who may have more authority to help you. Alternatively, call back and try your luck with another representative who might be more lenient.
Ultimately, getting your APR lowered is often as simple as calling your provider, saying you’re seeking a rate decrease and explaining why you should get one.
Can you get 0% interest on credit cards?
Yes—but only with introductory balance transfer offers. These cards allow you to transfer your balance from an existing card over to a new credit card, with 0% interest applying for a limited period, usually 6 to 12 months. Once this intro period ends, the card’s standard APR will apply to your balance.
Credit cards with 0% interest on purchases are available in the United States and other countries, but there are no such cards in Canada.
Why might my credit card application be denied?
When you apply for a low-interest credit card, the credit card issuer will look at your credit history and information on your application to decide whether to approve your application and determine what interest rate you will get. Here are a few reasons that your credit card application might be denied.
Less than excellent credit. Typically, only applicants with good to excellent credit—generally with credit scores of around 675 and above—are approved for low-interest rate credit cards. If your credit score is too low, you could either be approved at a higher interest rate or denied altogether.
A recent late payment. A single late payment may not cause your credit score to drop out of the excellent range. However, your credit card application could be denied if you’ve had multiple recent late repayments.
High credit card balances. Credit card issuers look unfavourably on applicants with lots of outstanding debt. If your existing credit card balances are too high, especially compared to your credit limits, your application could be denied.
Too many recent applications. Even if the applications don’t hurt your credit score, you could be turned down for a low-interest rate credit card if you’ve applied for too many credit cards or loans recently. Keep your credit card applications to a minimum so credit card issuers won’t get the impression that you’re desperate for money.
Low income. Credit card issuers have income standards for each credit card. If the income on your application doesn’t meet the issuer’s requirements, your application could be denied.
What other cheap credit card options are available?
Besides low-interest credit cards, you can also look into some other money saving credit cards based on your different needs including balance transfer, no-annual-fee and 0% foreign transaction fees credit cards.
Balance transfer credit cards
Low intro balance transfer cards offer a promotional interest rate when you move existing debt to a new card or when you make a large purchase and carry the balance. The intro period can generally last from 6 to 12 months, depending on the card. At the end of the intro APR period, a standard interest rate will apply to any remaining debt.
Good if: You want to consolidate your debt and pay off your balance without the burden of interest.
Bad if: You want to earn rewards or you travel often and want to save money on foreign transaction fees.
No-annual-fee credit cards
No-annual-fee credit cards do not charge a yearly fee. These credit cards are usually the cheapest option for people who pay back their card balance by the statement due date or who rarely use their cards.
Good if: You rarely use your credit card or want to cut down on extra costs.
Bad if: You want to earn higher rewards or get premium perks and benefits.
Credit cards with 0% foreign transaction fees
You can use a credit card with no foreign transaction fees to spend abroad or online with international retailers without paying the extra 1% to 3% foreign transaction fee that a lot of credit cards charge. To put this in perspective, if a card charged you 3% for a foreign transaction worth $3,000, it would cost you an extra $90. These fees can quickly add up, so 0% foreign fee cards offer a cheaper alternative.
Good if: You regularly shop online with international merchants or have an overseas trip coming up.
Bad if: You want to earn cash back on everyday purchases.
Low interest credit cards are ideal for people who carry forward their credit card balance from month to month. You’ll save money on interest and be able to put more money towards the principal balance to pay off your card faster. The downside is that these types of cards don’t typically come with any extra perks or rewards programs. Learn more about how credit cards work and find the right card for your needs in our detailed guide.
Best low-interest credit cards FAQs
Your credit limit is the maximum amount you can charge on your credit card without penalty. At the time your application is approved, the credit card issuer will set your credit limit based on your credit rating and income. You may be able to get periodic credit limit increases if you use your credit card responsibly, make your payments on time and alert your credit card issuer to any income increases.
Low interest rate credit cards commonly come with APRs ranging from approximately 8.99% to 13.99%. If you don't pay your credit card balance in full each month, a low rate card can help you save money on interest charges. However, if you do pay off your total balance each month, you may find that a card with a higher interest rate but that also offers rewards points and other perks is better suited to your needs.
There are certain circumstances where credit card issuers will raise the interest rate on a low-interest rate credit card, including the following:
The underlying interest rate changes. Most credit cards have a variable interest rate. This means the interest rate is tied to the prime rate, which can fluctuate frequently. When the index rate moves, the rate on your credit card moves too. If the prime rate increases, the APR on your low-interest rate credit card will also increase. However, the interest rates of other credit cards will also increase, so your APR will still likely be lower than the current average.
You miss two payments in a row. If you are more than 60 days behind on your credit card payment, your interest rate can increase as a penalty. As long as you make the next six payments on time, your interest rate should go back down for any charges you made before your rate increased. Your credit card issuer may still apply the higher interest rate to any new purchases you make during that period.
Your credit card issuer can raise your interest rate under other circumstances, but you must be given a 45-day advance notice before your rate can increase. You can reject the interest rate increase and pay off your balance at the lower interest rate, but your credit card issuer can, in turn, close your account.
A low-interest rate credit card charges a low-interest rate on purchases you make on your card. So if you don't pay off your full card balance each month, your card provider will charge less interest on your outstanding balance. This allows you to save money on repayments and pay off your debt sooner.
The best low-interest credit card for you depends on how you use your card and the key features you need. For example, if your priority is saving money, look for a card with a competitive low rate and no annual fee. If you want to be rewarded for using your card, look for a card that lets you earn rewards points or cash back on purchases. Or if you want to transfer your existing credit card debt to a new card, look for a credit card that also offers a low rate on balance transfers.
Credit card issuers use risk-based pricing to set interest rates for credit cards. Risk is largely gauged by credit score. Consumers with low credit scores are considered to be riskier because of past credit mistakes. These consumers will pay a higher rate when borrowing to compensate for the risk that they may fall behind on payments. Consumers with high credit scores are considered to be less risky because they have demonstrated good payment habits. These consumers are able to borrow money at a lower interest rate.
A credit card with a 12% interest rate is a low rate card, so it may be worth considering if you don't pay off your balance in full each month and want to save money on interest payments. However, low-interest rate cards often don't offer the same perks as cards with higher APRs, such as rewards points and cash back, while there may also be cards available with lower interest rates.
A low-interest rate credit card is most beneficial if you tend to carry a credit card balance – meaning you don’t pay in full each month. If you prefer to pay your balance in full, a rewards credit card may be a better option.
A low-interest rate credit card generally has a low APR (Annual Percentage Rate) for the life of the credit card. A balance transfer credit card only has a low-interest rate for a specific time period, beginning when you open the credit card account. After the initial introductory period expires on a balance transfer credit card, your interest rate will increase. The interest rate on a low-interest rate credit card generally lasts the life of your credit card.
Among the credit cards marketed specifically to students, the standard APR is 15% to 24.99%. However, if you’re a student you can still apply for a low-interest credit card so long as you have a reliable source of income and good creditworthiness.
Jeremy is a co-founder of Finder and it's Chief Operating Officer. His focus has been on building the best possible customer experience focused on every aspect of Finder's comparison service from it's content to all of the tools and technology used to help our customers make better financial decisions every day. See full bio
Chelsey Hurst is a publisher at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature. See full bio
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