If you can’t always pay off your balance each month, you should consider comparing credit cards to get one with a low interest rate. It’s a good way to pay less interest and avoid falling into the vicious cycle of debt. There are many low-interest credit cards to choose from in Canada; some have no annual fees, and others have generous reward programs.
With all the options out there, we’ve gathered the best credit cards for Canadians and put together a list of the best low-interest credit cards in Canada. Keep reading to learn about them.
How To Recognize a Low-interest Credit Card
Low-interest credit cards generally offer an interest rate of 14.90% or lower, while regular credit cards usually have a rate of at least 19.99% and can go as high as 29.99%. If you are always making payments on time, you don’t need to worry about interest rates.
However, if you don’t always pay your entire balance each month, this rate is critical for your portfolio. For example, with a card offering a low rate of 10.90%, your balance of $1,000 of which you pay the minimum of $30/month will cost you a total of $1,196.56 in the end. You will need 3 years to fully reimburse it. With a regular credit card (19.99% rate) the total is higher at $1,471.41 and it takes 4 years to get rid of this debt.
1. MBNA True Line Mastercard – Best Overal Low-interest Credit Card
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Our top choice for the best low-interest credit card is the MBNA True Line Mastercard. This card has a low rate of 12.99% on purchase interest rates and balance transfers. However, it has a fairly standard rate of 24.99% on cash advances. Plus, new cardholders who meet certain criteria will be eligible to receive 12 months of a 0% interest rate on balance transfers.
The MBNA True Line Mastercard is available for no annual fee and, on top of its low-interest rate, is a great option if you’re trying to rebuild your credit. It doesn’t have a minimum income requirement and you only need a credit score of around 660 to qualify. If you’re carrying a balance from a different card, you can save quite a bit in interest by transferring to the MBNA TrueLine Mastercard.
And if you charge a large purchase to your MNBA True Line Mastercard, you can save even more on interest with an MBNA Payment Plan, which lets you pay off high charges in installments rather than be charged interest.
| Eligibility Requirements | MBNA TrueLine Mastercard |
| Credit Score (estimate) |
660 |
| Annual Income | N/A |
| Additional | Resident of Canada Provincial Age of Majority |
2. BMO Preferred Rate Mastercard – Best Low-interest Credit Card for Balance Transfers
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The BMO Preferred Rate Mastercard offers an interest rate of 13.99% on purchases and 15.99% on cash advances and balance transfers. However, it offers a reduced welcome rate on balance transfers of 0.99% for the first 9 months after opening the account. Each transfer must be for a minimum of $100 and a 2% transfer fee applies.
With the BMO Preferred Rate Mastercard, you benefit from a free extended warranty and purchase insurance. It protects you against theft and damage to the items purchased with the card for 90 days, up to a lifetime maximum of $60,000.
| Eligibility Requirements | BNO Preferred Rate Mastercard |
| Credit Score (estimate) |
660 |
| Annual Income | N/A |
| Additional | Resident of Canada Provincial Age of Majority |
3. Scotiabank Value Visa Card – Best For Larger Purchases
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The Scotiabank Value Visa credit card is popular for a very good reason. The interest rate on purchases, cash advances and balance transfers on the Scotiabank Value Visa card is 12.99%.
No insurance is included with this credit card, but you can enroll in one of two optional coverages: “Basic Protection” or “Comprehensive Protection”. The first offers death, critical illness and hospitalization coverage. The second offers the same coverage plus one for disability, job loss and strike or lockout.
Recently, Scotia SelectPay became available. It’s a monthly instalment plan that lets you pay for your purchases in bite-sized chunks. Purchases of $100 or more are converted into fixed monthly payments, with no interest and low fees ($8.00/month).
Road trip enthusiasts will be pleased to know that when you rent a car with the Scotiabank Value Visa at participating Avis and Budget locations in Canada and the United States, you are entitled to a discount of up to 25%.
| Eligibility Requirements | Scotiabank Value Visa Card |
| Credit Score (estimate) |
660 |
| Annual Income | $12,000 |
| Additional | Resident of Canada Provincial Age of Majority Minimum card limit of $500 |
4. Scotiabank Platinum American Express Card – Best Low-interest Credit Card For Travel
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Sure, at $399 a year, the Scotiabank Platinum American Express credit card isn’t cheap! But you get what you pay for. Its interest rate is among the lowest, at 9.99%. If you like to travel, you’re in for a treat. You will pay no foreign transaction fees, whether you shop online or in a store outside Canada. Only the exchange rate applies. You will also enjoy 10 free airport lounge visits per year. It’s actually one of the best cards for airport lounges. Plus, you earn 2 Scene+ points on all your purchases.
If you use Scene+ Travel, you’ll even earn 3 Scene+ points for every dollar you charge to your Scotiabank Platinum American Express card on hotel and car rental reservations. Your points can be redeemed for airfare, car rentals and hotel reservations. If you’re not travelling this year, it’s easy to redeem them for merchandise, dining and entertainment.
| Eligibility Requirements | Scotiabank Platinum American Express Card |
| Credit Score (estimate) |
700 |
| Annual Income | Not specified |
| Additional | Resident of Canada Provincial Age of Majority Minimum credit limit of $10,000 |
5. RBC Visa Classic Low Rate Option – Best Low-interest Credit Card for Vehicle-Owners
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As the name implies, the RBC Visa Classic Low Rate Option is like the standard Visa card but with a flat 12.99% interest rate for all transactions. The fee is $20 for the primary cardholder and 0$ for all authorized users.
This card has gas rewards too. Use your card at Petro Canada stations and you can save 3¢ per litre on fuel. If you have a Petro Points card, your RBC Visa Classic Low Rate Option gets you 20% more Petro Points. This credit card also gives you a free 3-month subscription to DashPass, which entitles you to unlimited free deliveries on orders of $15 or more.
Furthermore, you get purchase protection and extended warranty insurance with this card. You have the option to add on extras. Travel insurance, identity theft protections, RBC road assistance service, and balance protection features are available when you apply.
| Eligibility Requirements | RBC Classic Low-Rate Option |
| Credit Score (estimate) |
630 |
| Annual Income | N/A |
| Additional | Resident of Canada Provincial Age of Majority |
6. RBC RateAdvantage Visa – Best Variable Rates
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The RBC RateAdvantage Visa Card uses a variable prime rate, determined by RBC, which is 7.20% since July 2023 but very much subject to change. An additional 4.99% to 8.99% is added, depending on your application information, including your credit score. The higher your credit score, the less interest you should pay. It is, therefore, in your best interest to pay all your balances on time to take advantage of the lowest possible rate.
Like all RBC cards, this one offers an instant discount of 3¢ per litre at Petro-Canada. This discount is valid on all types of gasoline (including diesel) at any station. When you use your card at Petro-Canada, you also earn 20% more Petro-Points on all eligible purchases. The RBC Rate Advantage also comes with purchase insurance and an extended warranty.
| Eligibility Requirements | RBC Rate Advantage Visa |
| Credit Score (estimate) |
630 |
| Annual Income | N/A |
| Additional | Resident of Canada Provincial Age of Majority |
7. TD Emerald Flex Rate Visa Card – Best Environmentally Friendly Card
Save on interest payments and feel good about using a card made with 90% recycled plastic with the TD Emerald Flex Rate Visa card. Depending on your credit assessment, which will be conducted by TD for every new application, interest rates for purchases can be as low as 5.5% (plus the current TD prime rate, which is 7.35% as of publication).
Travellers also have the option to purchase additional travel and medical insurance, and TD’s partnership with Starbucks Rewards means that cardholders can earn 50% more Stars when they pay with any TD credit card.
While it might not have many perks or benefits, if you have good or excellent credit, the TD Emerald Flex Rate Visa Card can save you a bundle per year in interest payments. If you make regular large purchases on your credit card, this is a good one to have in your wallet.
| Eligibility Requirements | TD Emerald Flex Rate Visa Card |
| Credit Score (estimate) |
670 |
| Annual Income | N/A |
| Additional | Resident of Canada Provincial Age of Majority |
8. MBNA True Line Gold Mastercard – Best Rates on Purchases
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The MBNA True Line Gold Mastercard offers a low interest rate on purchases and balance transfers, but fairly standard rates on cash advances. With this card, you benefit from purchase protection covering loss, damage or theft of your items for 90 days after the date of purchase. The manufacturer’s warranty is doubled for up to one year. You also have access to assistance and legal aid services, particularly in the event of lost luggage or for the replacement of lost documents and tickets.
If you rent a car, you’ll get at least a 10% discount at Avis and Budget in Canada and the United States. Internationally, the discount is at least 5%. The MBNA True Line Gold card allows you to have up to 9 additional cards at no charge.
| Eligibility Requirements | MBNA True Line Gold Mastercard |
| Credit Score (estimate) |
680 |
| Annual Income | N/A |
| Additional | Resident of Canada Provincial Age of Majority |
9. Capital One’s Low Rate Guaranteed Mastercard – Best Credit Card for Guaranteed Approval
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With its low rate and guaranteed approval, Capital One’s Low Rate Guaranteed Mastercard provides access to credit even for those with a poor credit score. In fact, if the bank deems that your record isn’t good enough, you’ll have a secured credit card and will have to put down funds ranging from $75 to $300. Secured or unsecured, the card has an annual fee of $79 and an interest rate of 14.90% for purchases and balance transfers. The rate for cash advances remains quite high. If you use your card well, you’ll be able to rebuild your credit quickly.
This card also comes with insurance, including coverage for collisions and damage in rental vehicles. You’re also well taken care of on a day-to-day basis with purchase insurance, extended warranty and price protection plans that will refund the difference if you buy an item and find the same at a lower price elsewhere.
| Eligibility Requirements | Capital One’s Low-Rate Guaranteed Mastercard |
| Credit Score (estimate) |
300 |
| Annual Income | N/A |
| Additional | Resident of Canada Provincial Age of Majority You don’t have an existing Capital One account or a pending application for one You haven’t had a Capital One account that was not in good standing in the last year You haven’t applied for a Capital One account more than once in the last 30 days |
FAQs about Low-interest Credit Cards in Canada
How to transfer my card balance to a lower-interest credit card?
First, order a low-interest credit card using a credit card comparison tool. Then log in to the account of the card you want to transfer a balance from. In the card’s options, you’ll find one for transferring the balance. The process may vary from one financial institution to another.
How to find a low-interest credit card?
You can search for a low-interest credit card using a credit card comparison tool. This type of tool compares credit cards from different issuers. Alternatively, you can search the Internet or contact your bank.
How to request a lower interest rate on a credit card?
You can negotiate a lower interest rate on your credit card. You need to contact customer service. It helps if you’ve been using the card for at least a year, have a good payment history and a good credit rating. If it’s a bank-issued card, you can leverage your other accounts and investments with the bank.
