Best low-interest credit cards

Low interest credit cards offer long-lasting low interest rates on your purchases. Here’s how you can choose the right card.

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Chelsey Hurst's headshot

By

Jeremy Cabral

&

Chelsey Hurst

Updated

Fact checked

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 4 best low-interest credit cards in Canada

MBNA True Line Gold Mastercard image
MBNA True Line Gold Mastercard
N/A
N/A
$39
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Why we like it

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.

Pros

  • 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
  • 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

Cons

  • You'll have to pay a $39 annual fee to maintain this card
  • 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
Scotiabank Value Visa Card image
Scotiabank Value Visa Card
0% on balance transfers for 9 months
N/A
$0 annual fee for the first year ($29 thereafter)
Get a 0% introductory interest rate on balance transfers for the first 9 months. Plus, pay no annual fee in the first year. Apply by January 3, 2027. T&Cs apply.
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Why we like it

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% introductory interest rate on balance transfers for the first 9 months. Plus, pay no annual fee in the first year. Apply by January 3, 2027.

Pros

  • 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%

Cons

  • This card has an annual fee of $29
  • No cash back or rewards
  • This card has a foreign transaction fee of 2.5%
BMO Preferred Rate Mastercard image
BMO Preferred Rate Mastercard
0% rate on balance transfers for 18 months
N/A
$0 annual fee for the first year ($29 thereafter)
Get a 0% introductory interest rate on balance transfers for 18 months with a 3% transfer fee. Plus, get the $29 annual fee waived for the first year. T&Cs apply.
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Why we like it

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 0% introductory interest rate on balance transfers for 18 months with a 3% transfer fee. Plus, get the $29 annual fee waived for the first year.

Pros

  • Low APR of 13.99% for purchases and 15.99% for cash advances
  • Get a 0% introductory interest rate on balance transfers for 18 months with a 3% transfer fee. Plus, get the $29 annual fee waived for the first year.
  • Purchase Protection, Extended Warranty coverage and Zero Liability protection

Cons

  • 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 3%
  • This card has a foreign transaction fee of 2.5%
MBNA True Line Mastercard image
MBNA True Line Mastercard
Balance transfer offer
N/A
$0
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Why we like it

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).

Pros

  • 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

Cons

  • 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
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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 cardLow interest credit card
Interest rate20%9%
Amount paid towards interest$17$7.50
Amount paid towards principal balance$3$12.50
Number of months to fully pay off balance10963

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.

Compare low-interest rate credit cards

Pros and cons of low-interest credit cards

Pros

  • 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

2 of 2 results
Purchase Interest Rate Cash Advance Rate Annual Fee Minimum Income
13.99%
15.99%
$0 annual fee for the first year ($29 thereafter)
N/A
Get a 0% introductory interest rate on balance transfers for 18 months with a 3% transfer fee. Plus, get the $29 annual fee waived for the first year. T&Cs apply.
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Scotiabank Value Visa Card image
Scotiabank Value Visa Card
13.99%
13.99%
$0 annual fee for the first year ($29 thereafter)
$12,000
Get a 0% introductory interest rate on balance transfers for the first 9 months. Plus, pay no annual fee in the first year. Apply by January 3, 2027. T&Cs apply.
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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.
  • 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.

Compare other cheap credit cards

5 of 11 results
Balance Transfer Rate Balance Transfer Fee Purchase Interest Rate Annual Fee Min. Credit Score
22.99%
N/A
20.99%
$48
Get up to 14,000 Avion points. That's up to $100 of value in gift cards. Apply by January 12, 2026. T&Cs apply.
Min. recommended credit score: 660
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23.99% (21.99% for Quebec residents)
2%
21.99%
$0
Get up to 25,000 welcome points and 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee. Apply by October 31, 2027. Plus, earn up to 5,000 bonus points every year. T&Cs apply.
Min. recommended credit score: 660
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Scotia Momentum Visa Card image
Scotia Momentum Visa Card
0.99% for the first 9 months (then 22.99%)
N/A
20.99%
$49
Get a 0.99% introductory interest rate on balance transfers for the first 9 months. Offer ends January 3, 2027. T&Cs apply.
Min. recommended credit score: 670
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BMO CashBack Mastercard image
BMO CashBack Mastercard
23.99% (21.99% for Quebec residents)
2%
21.99%
$0
Get 5% cash back on all eligible purchases in the first three months of card membership (up to a maximum spend of $2,500) when you apply by October 31, 2027. Then earn 3% cash back on groceries, 1% on recurring bill payments and 0.5% on all other eligible purchases thereafter. Plus, get a rate of 0.99% on balance transfers with a 2% balance transfer fee for nine months. T&Cs apply.
Min. recommended credit score: 660
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BMO Preferred Rate Mastercard image
BMO Preferred Rate Mastercard
0% for the first 18 months (then 15.99%)
3%
13.99%
$0 annual fee for the first year ($29 thereafter)
Get a 0% introductory interest rate on balance transfers for 18 months with a 3% transfer fee. Plus, get the $29 annual fee waived for the first year. T&Cs apply.
Min. recommended credit score: 660
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5 of 12 results
Welcome Offer Rewards Purchase Interest Rate Annual Fee Min. Credit Score
Up to $100 in bonus cash back
Up to 2% cash back
21.99%
$0
In your first 3 months, earn a bonus 5% cash back on all purchases on top of your everyday cash back earn rates (up to $2,000 in purchases). That’s up to $100 in bonus cash back. T&Cs apply.
Min. recommended credit score: 700
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Up to 5% cash back
Up to 2% cash back
21.99%
$0
Get 5% extra cash back on your first $2,000 in spend for 6 months. Apply by February 2, 2027.. T&Cs apply.
Min. recommended credit score: 650
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Up to 25,000 bonus points
Up to 5 points per $2 spent
21.99%
$0
Get up to 25,000 welcome points and 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee. Apply by October 31, 2027. Plus, earn up to 5,000 bonus points every year. T&Cs apply.
Min. recommended credit score: 660
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Neo Mastercard image
Neo Mastercard
N/A
up to 15% boosted cashback at thousands of partners across Canada
19.99% - 29.99% (up to 24.99% in Quebec)
$0
Min. recommended credit score: 640
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RBC ION Visa image
RBC ION Visa
Up to 7,000 points
Up to 1.5X Avion points per $1 spent
20.99%
$0
Get up to 7,000 Avion points. That's up to $50 of value in gift cards. Apply by January 12, 2027. T&Cs apply.
Min. recommended credit score: 660
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4 of 4 results
Welcome Offer Rewards Purchase Interest Rate Annual Fee Min. Credit Score
N/A
N/A
21.99%
$49 USD
When your purchases total US$3,000 or more in a year, the next year's annual fee (US$49) is rebated to your card. T&Cs apply.
Min. recommended credit score: 725
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Scotiabank Gold American Express Card image
Scotiabank Gold American Express Card
65,000 points
Up to 6x points per $1 spent
21.99%
$120
$150$150 Reward

Finder Rewards: Join Finder then apply through Finder and get approved for a Scotiabank Gold American Express Card as a new Scotiabank customer to receive a $150 digital Visa gift card. Ends 30 Dec 2026. T&Cs apply.

Earn up to $1,100 in first-year value, including up to 65,000 bonus Scene+ points. Apply by January 3, 2027. T&Cs apply.
Min. recommended credit score: 700
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BMO eclipse Visa Infinite Privilege image
BMO eclipse Visa Infinite Privilege
200,000
5 points per $1 spent
21.99%
$599
Get up to 200,000 welcome points, 10 lounge passes and a $200 annual Travel Credit. That's up to $2,700 in value. Apply by October 31, 2027.
Plus, get 0% introductory interest rate on balance transfers for 12 months with a 2% transfer fee. T&Cs apply.
Min. recommended credit score: 760
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Scotiabank Passport Visa Infinite + Card image
Scotiabank Passport Visa Infinite + Card
45,000 points
Up to 4x points per $1 spent
20.99%
$150
Earn up to 45,000 bonus Scene+ points (that’s up to $1,350 in value in the first 12 months). Apply by January 3, 2027. T&Cs apply.
Min. recommended credit score: 700
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Bottom line

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

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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's headshot
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Growth Manager (Banking & Investments)

Chelsey Hurst is a Growth Manager 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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