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.
Choose your low-interest credit card from the list below based on their purchase interest rates:
| Annual Fee | $39 |
|---|---|
| Purchase APR | 8.99% |
| Cash Advance Rate | 24.99% |
| Balance transfer APR | 8.99% |
| Welcome offer | N/A |
| Rewards | N/A |
| Annual Fee | $0 intro annual fee for the first year ($25 thereafter) |
|---|---|
| Purchase APR | 11.9% |
| Cash Advance Rate | 11.9% |
| Balance transfer APR | 11.9% |
| Welcome offer | N/A |
| Rewards | Earn 2 Points for every $1 on eligible dining or entertainment purchases and earn 1 Point for every $1 spent on all other everyday purchases. |
| Annual Fee | $0 intro annual fee for the first year ($29 thereafter) |
|---|---|
| Purchase APR | 12.99% |
| Cash Advance Rate | 12.99% |
| Balance transfer APR | 0% intro for the first 6 months (then 12.99% ) |
| Welcome offer | Get a 0% introductory interest rate on balance transfers for the first 6 months. Plus, pay no annual fee in the first year. Apply by October 31, 2023. |
| Rewards | Get an on-going low interest rate of 12.99% on eligible purchases. |
| Annual Fee | $0 intro annual fee for the first year ($29 thereafter) |
|---|---|
| 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. Plus, get the $29 annual fee waived in the first year. |
| Rewards | N/A |
| Annual Fee | $0 |
|---|---|
| Purchase APR | 12.99% |
| Cash Advance Rate | 24.99% |
| Balance transfer APR | 0% intro for the first 12 months (then 12.99% ) |
| Welcome offer | Get a 0% promotional annual interest rate for 12 months on balance transfers completed within 90 days of account opening. |
| Rewards | N/A |
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.
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.
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.
[/faq_question]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.
Compare low-interest rate credit cards
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.
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:
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:
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.
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.
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.
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.
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.
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.
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.
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.
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 comprehensive guide.
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