Georgia Rose
Erica CorbinMany or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.
If you want to slow down your debt accumulation and rewards aren’t a top priority, a low-interest credit card can be a good place to start.
To help you find the one that’s right for you, NerdWallet has compiled the best low-interest credit cards in Canada.
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Best Low-Interest Transfer Cards in Canada from our Partners
Credit Card |
Intro APR |
Balance Transfer Fee |
Annual Fee |
|
|---|---|---|---|---|
Best No-Fee card with Balance Transfer OfferMBNA True Line® Mastercard® credit card |
0% intro for 12 months on balance transfers
|
3%
|
$0
|
|
Scotiabank Value® Visa* Card |
0% intro on balance transfers for 10 months
|
1%
|
$29
Waived first year
|
|
BMO Preferred Rate Mastercard®* |
0.99% interest rate on balance transfers for 9 months
|
2%
|
$29
Waived first year
|
Best low-interest credit cards in Canada
Best low-interest card with low annual fees
Best for: No annual fee
Desjardins Flexi Visa
The Desjardins Flexi Visa offers more than the average no-fee, low-interest rate credit card, including mobile device protection and a modest amount of travel insurance.
Pros
- Competitive interest rate on purchases and cash advances.
- Mobile device protection and travel insurance included.
Cons
- No points system or rewards program.
- No promotional offers.
- No annual fee for the primary card and any additional cards.
- No transaction fees on purchases made in Canada.
- 25-day grace period to pay your bill without incurring credit charges.
- 10.9% interest rate on purchases and 12.9% on cash advances.
- If the minimum payment is not made, the annual interest rate will increase to 19.9% until payment is received.
- Cash advances limit of $5,000 per day.
- Up to $1,000 in insurance against loss, theft, accidental damage or mechanical failure of mobile devices purchased with the Desjardins Flexi Visa.
- Purchase protection: Eligible items purchased with the Desjardins Flexi Visa are protected against loss or damage for 90 days from the purchase date.
- Extended warranty: The original manufacturer’s warranty is doubled for up to one additional year on most items purchased with the Desjardins Flexi Visa.
- Travel insurance for trips up to three days cover:
- Eligible medical care and services required for up to $5 million per person;
- Trip cancellation for up to $500 per person and trip interruption for up to $1,000 per person if the trip is paid for using the Desjardins Flexi Visa;
- Baggage insurance for up to $500 per person for bags that are lost, stolen or delayed more than six hours.
- Car rental discounts include: up to 15% off rental rates and reduced fees at Hertz; up to 10% off rental rates and reduced fees at Thrifty and Dollar.
- Cardholders enjoy zero liability in the event of fraudulent card use.
Best for: Low annual fee
Scotiabank Value® Visa* Card
A rare 0% intro period on balance transfers and low interest rates year-round, the Scotiabank Value Visa can help you quickly pay down balances transferred from higher-rate credit cards.
Pros
- Cardholders who carry a balance will save money every month with this card’s low 12.99% interest rate on purchases, cash advances and balance transfers.
- A stellar 0% introductory interest rate on balance transfers for the first six months.
Cons
- No rewards.
- No insurance coverage.
- 0% introductory interest rate on Balance Transfers for the first 10 months (12.99% after that; annual fee $29).¹ Plus no annual fee in the first year.¹ Offer ends 31 Oct 2024.
- Save up to hundreds of dollars a year on interest.
- Low interest rate of 12.99%.
- Pay down higher interest rate balances faster.
- Transfer higher rate balances and save even more.
- To be eligible, $12,000 (individual) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident that is the age of majority in the province or territory where you live.
- Terms and Conditions Apply. Click ‘Apply Now’ for complete details.
Best for: Travel insurance
American Express Essential™ Credit Card
No annual fee and a 12.99% interest rate make the American Express Essential™ Credit Card a solid option if you might carry a balance.
Pros
- The 12.99% interest rate also applies to cash advances. Plus, it’s permanent, provided you make a minimum payment every month.
- Up to $100,000 of travel accident insurance.
Cons
- You won’t earn cash back or points on purchases, since this is not a rewards card.
- There’s no intro offer.
- Enjoy an annual interest rate of 12.99% on purchases and funds advances.
- With an annual interest rate of 12.99%, you can save on interest payments if you choose to carry a balance and make your minimum monthly payments on time.
- Access virtual events and special offers curated for Cardmembers with American Express® Experiences.
- 24/7 Customer Services.
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details, current product information and Terms and Conditions, click the Apply now link. Conditions apply.
Best low-interest cards with rewards
Best for: Premium perks
Scotiabank Platinum American Express® Card
With low rates and a generous rewards program, the Scotiabank Platinum American Express card is a unicorn for frequent travellers seeking luxury perks, premier travel benefits and exceptional interest rates on purchases and cash advances.
Pros
- Low interest rates, no foreign transaction fees, and an impressive insurance package that includes comprehensive travel insurance coverage and newly-added mobile device insurance.
- Luxury travel privileges include 10 free VIP airport lounge visits per year with a complimentary Priority Pass membership.
Cons
- The $399 annual fee is quite a bit higher than other rewards cards, but frequent travellers seeking a low rate on purchases and cash advances can easily make the yearly cost worthwhile.
- Earn up to $2,100* in value in your first 14 months, including up to 60,000* bonus Scene+ points. Offer ends October 31, 2024.
- You will not pay 2.5% foreign transaction fees on any foreign currency purchases, including online shopping and when travelling abroad. Only the exchange rate applies.
- Earn 2X Scene+™ points for every $1 CAD you spend on all your eligible purchases.
- Scene+ points can be redeemed for travel purchase, merchandise and other non-travel rewards such as gift cards and prepaid cards.
- You must redeem a minimum of 5,000 points per travel-related rewards redemption, equivalent to $50 in travel savings. Points must be redeemed within 12 months of the purchase date.
- $399 annual fee.
- Redeem points for any flight, any time through Scene+ Travel, a full-service travel agency. Plus, take advantage of a best price guarantee on airfare.
- Get a Hertz #1 Club Gold membership for special privileges and rental car benefits at over 8,500 locations in 147 countries.
- Enjoy culinary events and experiences, entertainment, luxury fashion, tours, and more through American Express benefits, including American Express Invites, Platinum VIP offers and access to 24/7 premium concierge services for restaurant reservations, show tickets, and gift purchases.
- Lounge access at over 600 VIP airport lounges around the world with a complimentary Priority Pass membership, which includes 10 free visits per year.
- 12 types of insurance provided, including 31-day travel medical benefits — up to $2 million in coverage — for you, your spouse and any dependent children under the age of 65. 10-day coverage available for those over the age of 65.
- Preferred rates: 9.99% for purchases, 9.99% for cash advances.
- To be eligible, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.
- Terms and Conditions Apply. Click ‘Apply Now’ for complete details.
Best for: Cash back
Desjardins Odyssey® Visa Infinite Privilege
Not only does this low-interest card feature accelerated rates on daily spending, but the Desjardins Odyssey Visa Infinite Privilege comes with truly impressive insurance coverage.
Pros
- Comprehensive travel insurance includes emergency medical worth $5 million per person, covering 60 days for ages 59 and under and 15-days for ages 75 and under.
- 18 airport lounge visits included.
Cons
- No intro offer.
- There’s a high annual fee and $150,000 (individual) or $200,000 (household) annual income is required, making this card inaccessible for many.
- 4% in BONUSDOLLARS per dollar spent on restaurants, entertainment and public transportation.
- 3% in BONUSDOLLARS per dollar spent on groceries and travel.
- 1.75% in BONUSDOLLARS per dollar spent on everything else.
- Redeem BONUSDOLLARS for statement credits, financial products and services, charity, rewards, gift cards, purchases, and travel.
- 1 BONUSDOLLAR earned = $1 you can redeem. BONUSDOLLARs do not expire.
- $295 annual fee for Desjardins members, $395 annual fee for non-members.
- Airport lounge access through a complimentary Priority Pass membership, plus 6 free visits per year. 12 visits per year to the Desjardin Odyssey Lounge in the Montreal-Trudeau International Airport.
- Visa Infinite Privilege benefits including Visa Infinite Privilege Concierge, Visa Infinite Luxury Hotel Collection, Visa Infinite Dining Series, and Entertainment & Lifestyle Offers.
- Up to 25% off Hertz car rentals and up to 10% off Thrifty or Dollar rentals.
- Access to Accord D financing up to $5,000 a day cash advances at a rate of 9.9%.
- 12 types of insurance provided, including 60-day travel medical benefits — up to $5,000,000 in coverage per person under age 59. 31-day coverage is available for ages 60-64. 15-day coverage is available for ages 65-75.
- Preferred rates: 11.90% for purchases and 12.90% for cash advances.
- To be eligible, $150,000 (individual) or $200,000 (household) annual income, or assets under management of $400,000 is required. Also, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.
Best for: Low annual fee
Coast Capital Centra Gold Mastercard®
The Coast Capital Centra Gold Mastercard has a low interest rate and low annual fee. Plus, you cardholders earn one Reward Point for every CAD spent, which can be redeemed for cash, merchandise, travel bookings and more.
Pros
- Low interest rate.
- Low annual fee.
Cons
- No accelerated points system for specific purchases.
- No travel insurance coverage.
- $50 annual fee ($10 annual fee for each additional card).
- 11.99% purchase and cash advance APR.
- Get 1,000 Coast Capital Reward Points after you make your first purchase on the card. Offer valid until December 31, 2024.
- 90 days purchase protection on eligible purchases.
- Double the manufacturer’s warranty (up to one year) on eligible purchases.
- Mobile Device Insurance.
- Earn 1 Coast Capital Reward Point for every $1 spent on eligible purchases.
- Zero Liability Fraud Protection.
- Mastercard Global Service, an emergency assistance service available virtually anytime, anywhere, and in any language.
- 2.5% foreign transaction fee.
Best secured low-interest card
Best for: Rebuilding credit
Home Trust Secured Visa Card
The Home Trust Secured Visa offers a straightforward, no-frills experience for credit builders. Plus, there are two secured credit card options to fit a variety of needs: a no-fee card, and a low-interest card with a $59 annual fee.
Pros
- Low interest rate.
- Payments are reported to both credit bureaus.
Cons
- You’ll need to budget for the annual fee.
- No ability to earn rewards on purchases.
- $59 annual fee.
- No fee option available with a higher interest rate.
- $500 minimum security fund deposit required.
- $10,000 maximum security fund deposit.
- Hard credit checks are made on Home Trust Secured Visa applications.
- Credit activity, including every payment, is reported to TransUnion and Equifax, the two major consumer credit bureaus in Canada.
- Ability to upgrade to an unsecured credit card.
- Manage your account and billing with online banking.
- Cardholders can choose between a card with no annual fee and 19.99% interest or an annual fee of $59 and 14.90% interest.
- Protection against fraud through Visa’s Zero Liability Policy.
- Preferred rates: 14.90% for purchases, 19.80% for cash advances.
- To be eligible, you must have a source of income and cannot currently be in bankruptcy. You must be able to provide security funds and be a Canadian resident of the age of majority in the province or territory where you live. The Home Trust Secured Visa Card is not available to Québec residents.
Best low-interest business cards
Best for: No annual fee
CIBC bizline® Visa* Card for Business
A low interest rate, no annual fee, a reasonable minimum income requirement, and the potential for a generous credit limit make the CIBC bizline Visa card a viable fit for small but growing businesses.
Pros
- No annual fee for up to ten cards.
- A very low interest rate.
- A credit limit of up to $50,000.
Cons
- The interest rate can fluctuate, which could be an issue for businesses on a tight budget.
- Very few perks.
- No opportunity to earn rewards through business-related purchases.
- No annual fee for the first card and up to nine additional cards.
- Credit limits range from $1,000 to $50,000.
- Manage, track and organize credit activity through CIBC CreditSmart.
- Fraud alerts and zero liability in the event of fraudulent card activity.
- $100,000 in common carrier accident insurance for the cardholder, a spouse and dependent children.
- A $35,000 minimum individual annual income is required for approval.
- Preferred rates: As low as 8.20% — CIBC Prime plus 1.5% on purchases and cash advances.
Best for: Low annual fee
TD Business Select Rate™ Visa* Card (Low Rate Option)
The TD Business Select Rate Visa Card is a great option for people looking for a low rate (8.99%) and low annual fee ($49). The card also offers free additional cards for employees as well as rental discounts at Avis and Budget.
Pros
- Low interest rate (8.99% for purchases and cash advances).
- Free additional cards.
Cons
- No rewards or cash back.
- No welcome offer.
- $49 annual fee (no annual fee version available with a higher interest rate).
- Discounts of up to 25% off for business purchases made under the Visa SavingsEdge Program.
- Rental car discounts at Avis and Budget, and rental car insurance.
- Purchase protection and extended warranty.
- Earn 50% more Stars at participating Starbucks when you link your card.
- 8.99% for purchases and cash advances.
- Card is made from 90% recycled plastic.
- To be eligible, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.
Best for: Secured
ScotiaLine® for business Visa Credit Card (Secured)
With no annual fee and up to $500,000 of credit available, the ScotiaLine for Business VISA Credit Card (Secured) is a solid choice for business owners who do not qualify for a traditional credit card.
Pros
- No annual fee.
- Low interest rate.
- Up to $500,000 credit limit.
Cons
- No rewards.
- No welcome offer.
- No annual fee.
- Free supplementary cards and personalized cheques.
- Discounts on car rentals.
- Low interest rate (Prime + 1%).
- Unsecured version available.
- Purchase protection and extended warranty coverage.
Best for: Rewards
CIBC Aeroplan® Visa* Business Card
The CIBC Aeroplan Visa Business Card’s low interest rate and travel perks make this card a good fit for business owners on the move.
Pros
- Low interest rates available.
- Airport lounge access.
- Annual fee rebate for the first year.
Cons
- Lowest tier interest rate is not guaranteed.
- Travel medical insurance not included.
- $180 annual fee (first year rebated).
- 12.99% – 18.99% purchases APR.
- 2x Aeroplan points for Air Canada bookings.
- 1.5x Aeroplan points on travel, transportation, dining and other services.
- 1x Aeroplan point on everything else.
- Earn points twice through the Aeroplan eStore.
- Insurance coverage include trip cancellation, trip interruption, flight delay, baggage insurance, rental car coverage, purchase security, extended protection and common carrier accident insurance.
- Complimentary upgrade to Avis Preferred Plus.
- Free first checked bag for you, your authorized users and up to eight companions every time you fly with Air Canada.
- Earn up to four complimentary Maple Leaf Lounge One-Time Guest Passes per year.
- Authorized users can access travel benefits even when travelling without you.
- Get an extra night free for every three hotel nights redeemed with Aeroplan points.
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Methodology: How we evaluate cards
NerdWallet Canada selects the best low-interest credit cards based on their overall consumer value. Our evaluation is weighted by factors: 20% average earn value, 20% intro offer, and 60% fees and interest.
* Average earn value considers earning rates, rewards structure and spending categories.
* The intro offer considers the welcome bonus value, promotional interest rates, and any waived fees.
* Fees and interest consider interest rates for purchases, balance transfers and cash advances, and additional costs such as foreign transaction fees.
Other noteworthy features, such as insurance, special perks and extra benefits, earn unofficial bonus points. Only cards without a standard or promo low-interest rates were considered.
Summary of the best low-interest credit cards
| CARD NAME | BEST FOR | ANNUAL FEE |
|---|---|---|
| Best low-interest cards with low annual fees | ||
| Scotiabank Value® Visa* Card | Best for: Low annual fee. | $29. |
| American Express Essential™ Credit Card | Best for: Travel insurance. | $25. |
| Desjardins Flexi Visa | Best for: No annual fee. | $0. |
| Best low-interest cards with rewards | ||
| Scotiabank Platinum American Express® Card | Best for: Premium perks. | $399. |
| Desjardins Odyssey® Visa Infinite Privilege | Best for: Cash back. | $295-$395. |
| Coast Capital Centra Gold Mastercard® | Best for: Low annual fee. | $50. |
| Best low-interest secured card | ||
| Home Trust Secured Visa Card | Best for: Rebuilding credit. | $59. |
| Best low-interest business cards | ||
| CIBC bizline® Visa* Card | Best for: No annual fee. | $0. |
| CIBC Aeroplan® Visa* Business Card | Best for: Rewards. | $180. |
| TD Business Select Rate™ Visa* Card (Low Rate Option) | Best for: Low annual fee. | $49. |
| ScotiaLine for business Visa Credit Card (Secured) | Best for: Secured. | $0. |
How low-interest credit cards work in Canada
What is a low-interest credit card?
A low-interest credit card is similar to a traditional credit card, but it carries an interest rate lower than that of a typical card. If you often carry a balance on your credit card, you may find that your interest charges are adding up — and your balance keeps growing. Finding a card with the lowest possible interest rate is one way to help keep your credit card debt manageable.
Low-interest credit card features
A common feature is that low-interest cards tend to come with lower annual fees than cards that offer more benefits. Some low-interest cards even charge no annual fee.
Generally, lower-interest credit cards come with a tradeoff: most don’t offer many perks, such as rewards points or travel insurance.
How to get a low-interest credit card
Qualifying for a low-interest credit card is similar to applying for any other credit card. Typically, you must:
- Be the age of majority in your province or territory.
- Be a Canadian resident.
- Meet any minimum annual income and credit score requirements.
- Provide employment information and personal information such as your legal name, birth date and address.
Once you choose a card, you can apply through the credit card issuer’s website.
What is a good interest rate on a credit card?
Typical credit card interest rates hover around 20%, any rate lower than that could be considered a good interest rate.
More than 30 low-interest rate credit cards on the market offer interest rates lower than 13%, according to the latest data from the Canadian Bankers Association (CBA).
What is the average credit card’s interest rate?
In Canada, the average purchase interest rate for personal cards is around 23%, according to NerdWallet’s analysis of over 194 cards.
Here are interest rate ranges from the Big Six banks for personal credit cards.
| BANK | INTEREST RATE RANGE |
|---|---|
| TD Bank | 12.90% to 20.99%. |
| Royal Bank of Canada (RBC) | 12.99% to 20.99%. |
| Canadian Imperial Bank of Commerce (CIBC) | 13.99% to 20.99%. |
| Scotiabank | 9.99% to 20.99%. |
| Bank of Montreal (BMO) | 13.99% to 20.99%. |
| National Bank of Canada | 11.20% to 20.99%. |
Some credit cards offer low promotional interest rates for the first few months, but move to a higher rate once that introductory offer expires. For example, a card may offer 7.99% interest rate for the first six months, but once the promotional period ends, the rate increases to 20.99%.
What is a credit card interest rate?
A card’s interest rate, or APR, is what the issuer charges on any balance that’s left unpaid at the end of the billing cycle. If you don’t repay the full balance by the due date, the interest will be added to your balance. And if you don’t pay off your balance the following month, you’ll incur additional interest. That’s one reason why credit card debt can add up so quickly.
Your credit card agreement and each monthly statement displays the interest rate as an annual percentage, such as 20.99%.
Credit card interest rates vary among cards, financial institutions and even transactions.
Types of interest rates on credit cards
Depending on how you use your credit card, you may see one or more of the following interest rates applied to different transactions.
Purchase interest rate
The purchase interest rate is applied to regular purchases made using the card. This can include anything from a new pair of jeans to a recurring charge for your gym membership.
Cash advance interest rate
When you use your credit card to withdraw cash from an ATM, it’s called a cash advance. You’re not withdrawing your own money — like you would with a debit card, you’re borrowing the cash directly from the credit card issuer. This type of transaction can incur a higher interest rate than regular credit card purchases.
Cash advances are not subject to the interest-free grace period, which means you’ll start accruing interest on this amount you borrow as soon as it’s withdrawn. You might also have to pay a cash advance fee.
Balance transfer interest rate
When you move debt from one credit card to another, a special balance transfer interest rate applies. This rate is often similar to the cash advance rate.
Some issuers offer promotional balance transfer interest rates to entice you to move your credit card balance over from a different card. These promotional rates can be as low as 0%. However, there is typically a time limit attached, such as 0% for the first six months. After the promotional period ends, any balance left unpaid will be subject to the card’s regular interest rate.
Balance transfers can also incur a transfer fee, such as 3% of the transferred amount or $5, whichever is higher.
Fixed vs. variable interest rates
Fixed interest rates are set by the issuer and don’t typically change over time. For example, if your card has a 20.99% fixed interest rate, that will be the rate until the issuer notifies you of any changes.
Variable interest rates are linked to the bank’s prime lending rate, which means they can fluctuate with the market. These rates are often shown as the prime rate plus a base rate, such as prime plus 1.5%. Using this example, if your bank’s prime rate is 7.20%, your interest would be 8.70%.
Nerdy tip
Cardholders can try negotiating for a lower rate in certain circumstances — such as if they have a long record of paying their bill on time and are close to the credit limit.
How interest is charged on a credit card
Most issuers calculate credit card interest based on a daily formula. A basic way to calculate your daily interest rate is to take your annual rate and divide it by 365 days. So let’s say your annual rate is 20%. When you divide that by 365, you get a daily rate of 0.0548%1.
Given that most cardholders make purchases and payments throughout the month, many banks use the average daily balance to calculate interest at the end of each billing cycle.
So, to calculate your credit card interest:
- Calculate your card’s daily interest rate.
- Add up the outstanding daily balances for each day in the billing period and divide by the total number of days.
- Multiply the average daily balance by your card’s daily interest rate, then multiply that number by the total number of days in the billing period.
- (20% / 365) x 100 ↩︎
» Not into math? Use our credit card interest calculator.
Credit card grace period
Financial institutions in Canada are required to offer a 21-day grace period after a purchase, which begins on the last day of your billing period, as listed on your credit card statement. If you pay off the balance in full during this interest-free grace period, you will not incur any interest charges on that purchase.
However, the grace period only applies to purchases, not cash advances or balance transfers.
How to avoid paying interest on a credit card
To avoid paying credit card interest, pay off your balance in full each month before your interest-free grace period ends. You can ensure that you repay the balance on time by setting up automatic payments each month.
Another way to avoid interest charges — at least temporarily — is to transfer your balance to a credit card offering a 0% interest rate for new balance transfers. Just make sure you can pay off the balance during the promotional period.
Can you negotiate credit card interest?
While credit card interest rates might seem set in stone, there may be some wiggle room. If you have a strong record of paying your bill on time you may be able to request a lower interest rate from your financial institution.
Frequently asked questions about Canada’s low-interest credit cards
Credit card interest rates can get as low as 8.20%, according to NerdWallet’s analysis. Low rates can vary based on the issuer, the type of card you get (personal or business) and whether it’s secured or unsecured.
Paying interest on your credit card doesn’t directly affect your credit score — as long as you make at least the minimum payment by your due date.
If you miss payments or are late paying your credit card bill, you will see the effect on your credit report.
Accumulating a significant amount of debt can have adverse effects on your score, especially if it leads to unpaid bills or raises your credit utilization ratio.
It’s recommended that you use less than 30% of your total credit to maintain a healthy score.
About the Author
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