No Interest Credit Cards

Compare a credit card with a 0% interest rate offer that can help you pay down your balance faster and cheaper.

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If you want to consolidate or pay off existing debts, there is a wide range of credit cards that offer an introductory 0% interest rate for balance transfers. Or, perhaps you find yourself frequently withdrawing cash using your credit card. If this is the case, you may be able to find a couple of low interest rate cash advance credit cards on the market.

In addition, many credit cards offer interest-free days – known as the “grace period” – for purchases when you pay your account balance in full by the due date on each statement. This gives you a way to use your card and pay no interest for your purchases – even if you don’t have an introductory offer.

What types of no interest credit cards are available?

While 0% purchase credit cards are not available on the Canadian market, there are other types of no interest credit cards or low interest cards available to suit different spending habits and financial needs.

How can I compare no interest credit cards?

  • Length of the promotional offer. Make sure you check how long you’ll enjoy the 0% promotional rate for. This will help you determine how much you’ll need to repay each month to clear the entire balance before the higher revert rate applies. If you have a large debt, you might want to opt for a card with a longer introductory offer.
  • Revert rate. With promotional interest-free credit card offers, the 0% interest rate will revert to a higher rate at the end of the introductory period. Check what standard interest rate will apply to your balance so you can budget for any interest payments. Remember to compare this rate between cards to help you find one that will work for you.
  • Interest rate on purchases. Since you’ll be paying interest on any new purchases you make using your card, be sure to compare the rates offered by different providers. Better yet, avoid making new purchases on your balance transfer card and focus on paying off your debt.
  • Annual fee. Many credit cards charge an annual fee, so make sure that the interest savings you receive outweigh this cost to get value out of the card.
  • Rewards program. Some credit cards that offer 0% interest also come with rewards programs that let you earn points for every $1 spent. If you want this type of benefit, you will need to make new purchases on your balance transfer card, which will ultimately make it harder for you to pay down your debt during the intro period.
  • Complimentary extras. Many credit cards offer complimentary perks such as purchase and extended warranty, travel insurance, concierge services and airport lounge passes, among others. These benefits can add value to your card, however the more benefits a card comes with, the more expensive the annual fee tends to be.

What are the pros and cons of no interest credit cards?

Pros

  • Save money. The most obvious perk of a no interest credit card is that you can save on interest costs while the promotion is in place.
  • Pay off credit card debt. Moving your existing credit card debt to a card that offers 0% APR on balance transfers gives you a way to save on interest charges during the introductory period – which can help you pay off the debt faster.

Cons

  • Revert rate. At the end of the introductory period, the 0% APR interest rate will revert to a higher interest rate.
  • Standard interest on purchases. While some international markets offer 0% APR on new purchases, no such cards are offered in Canada. If you make any new purchases on your credit card, these new purchases will incur the standard interest rate, instead of the introductory 0% offer.

    How to apply for a no interest credit card

    You can apply for a 0% interest credit card online in just a few minutes. After comparing your options, remember to check the terms and conditions that are attached to the interest-free offer so that you’re sure you can use it. In addition, make sure you’re eligible for the credit card and have the necessary documents on hand to speed up the application process.

    Eligibility criteria

    The eligibility requirements will vary between cards and providers, however they usually include:

    • Age. You’ll need to be at least 18 years of age, or the age of majority in your province or territory.
    • Residential status. You’ll need to be a Canadian citizen or a permanent resident with a valid Canadian address.
    • Annual income. You may need to meet any minimum income requirements to apply.
    • Credit score. You may need to meet any minimum credit score requirements.

    Documents and details

    You’ll also be required to provide certain information during your application, so make sure you have the following ready:

    • Identity details. To confirm your identity, the bank may ask for you to provide evidence such as your driver’s licence, passport or other form of valid Government ID.
    • Employment verification. You may be asked to provide evidence of your income, including paycheques, tax documents and your employer’s contact details.
    • Other financial details. This could include any other sources of income, assets such as investments and savings accounts, as well as existing loans or cards that you use. You’ll also likely need to provide a budget for your household expenses to help show the credit card provider how you manage your money.
    • Balance transfer details. If you’re doing a balance transfer, you’ll need to provide information about your current debts – loans, credit cards, etc. This will usually include the amounts of each balance and the lender’s contact information.
    An introductory balance transfer credit card or simply paying off your entire balance during the grace period can ensure you avoid interest charges on a credit card. Just remember to read over the terms and conditions of your card and make sure you meet the requirements so that you can enjoy an interest-free period on the credit card you choose.

    Frequently asked questions

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