Best Low-Interest Credit Cards in Canada
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.
Not sure if a low-interest card is right for you?
If you’re still deciding which type of credit card best fits your needs, you may want to compare options across categories in our guide to the best credit cards in Canada.
Compare top low-interest options:
| Card | NerdWallet rating | Annual fee | Interest rates | Rewards rate | Apply Now |
|---|---|---|---|---|---|
| RBC® Visa‡ Classic Low Rate Option | APPLY NOW on RBC's website | ||||
 APPLY NOW on RBC's website | 4.1/5 | $20 | 12.99% | N/A | |
| MBNA True Line® Mastercard® credit card | APPLY NOW on MBNA's website | ||||
 APPLY NOW on MBNA's website | 3.3/5 | $0 | 12.99%/24.99% | N/A | |
| Scotiabank Platinum American Express® Card | APPLY NOW on Scotiabank's website | ||||
 APPLY NOW on Scotiabank's website | 5.0/5 | $399 | 9.99% | 2x Points | |
| Scotiabank Value® Visa* Card | APPLY NOW on Scotiabank's website | ||||
 APPLY NOW on Scotiabank's website | 4.8/5 | $29 Waived first year | 13.99% | N/A | |
| TD Low Rate Visa* Credit Card | APPLY NOW on TD's website | ||||
 APPLY NOW on TD's website | 4.1/5 | $25 | 12.90% | N/A | |
Pay down high-interest balances and debt with the MBNA True Line® Mastercard®. Get a 0% annual interest rate for 12 months on balance transfers made within 90 days. Plus use available credit on your credit card to transfer funds right to your chequing account. Terms and conditions apply. Click “Apply Now” to get started.
Our top picks: Best low-interest credit cards
NerdWallet's take
NerdWallet's takeThis low-interest card was made to cut borrowing costs with fixed interest rates on purchases, cash advances and balance transfers. There’s no rewards program, and insurance offerings are limited, but fuel discounts and complimentary DoorDash subscriptions provide additional value. Best for: People who typically carry a balance and don’t mind a low annual fee in favour of predictable fixed low interest rates.
Pros
- Low $20 annual fee.
- Fixed low interest rates.
Cons
- Doesn’t earn rewards.
- Limited insurance coverage.
Card details
Card details- Enjoy a 0.99% introductory interest rate for the first 10 months on balance transfers^ and no annual fee for the first year*. Apply by September 30th, 2026.
- Purchase security and extended warranty insurance.⁴
- Link your RBC card with a Petro-Points membership and instantly save on fuel at Petro-Canada stations and earn 20% more Petro-Points.
- Get a 6-month complimentary DashPass subscription – a value of almost $60. Plus, enjoy unlimited deliveries with $0 delivery fees on qualifying orders of $15 or more when you pay with your eligible RBC credit card⁷,⁸
- Enjoy unlimited deliveries with $0 delivery fees on orders of $15 or more when you pay with your eligible RBC credit card.
- Corresponding legal references and product terms are available on the RBC website, which will be available and agreed upon in the customer onboarding process.
- ^ In order to benefit from the 0.99% introductory interest rate on cash advances for 10 months, your application must be submitted by September 30th, 2026 and approved by us. The introductory interest rate offer is applicable to all cash advances (i.e. cash withdrawals from a bank branch or ATM with your RBC Royal Bank credit card, balance transfers, cash-like transactions and bill payments that are not pre-authorized charges that you set-up with a merchant). All other account activities, including purchases, are subject to the standard account annual interest rate(s) as shown in the Information Box. Interest is charged from the day the cash advance is made, until we receive your payment for the total amount you owe. The introductory interest rate on cash advances remains in effect through the first 10 full monthly statement periods (approximately 10 months from account open date). The Interest Rate Chart on your monthly statement will indicate the date on which the introductory interest rate expires, as long as you have a remaining balance associated with your introductory interest rate. If we do not process statements on the expiry date (for example, if it falls on a holiday or weekend), you will continue to benefit from that introductory interest rate until your statement is prepared, the next processing day. Once the offer expires: (i) all cash advances; and (ii) any remaining balances, which were subject to the introductory interest rate under this offer, will be subject to the cash advances interest rate indicated on your monthly statement. In general, if your credit card account consists of balances with different interest rates, such as purchases at the standard interest rate and cash advances at an introductory or promotional interest rate (e.g. a special lower rate balance transfer, or a temporary lower rate on all cash advances), any payment that exceeds the minimum payment due will be allocated to those balances in a proportionate manner. Your payment will not be applied to the balance(s) of your choice, such as the balance(s) with the highest interest rate, or to any category of balance(s) following a specific order. Please see the RBC Royal Bank Credit Card Agreement for details on how we allocate your payments. If you miss making any minimum payment by the payment due date and if you have not paid it before the date we prepare your next monthly statement, and/or if you change your actual RBC Royal Bank credit card for another type of card before the expiration of the offer, you will lose the benefit of this and any other introductory or promotional interest rate offer(s) in which you are participating and any remaining balance(s) which were subject to the introductory or other promotional annual interest rate under an offer(s) will be subject to the annual interest rate(s) indicated on your monthly statement, beginning on the first day of the third statement period after the missed payment. Cash advances do not qualify for Avion® points, partner rewards or cash back credits if your credit card is a type that earns rewards. Balance transfers cannot be used to pay any RBC Royal Bank credit card account or used for pre-authorized payments. Please call customer service at 1-800 ROYAL 1-2 (1-800-769-2512) for up-to-date information on your credit card account. Your RBC Royal Bank Credit Card Agreement explains the terms under which you use your RBC Royal Bank credit card. Please refer to it for full details. * To be exempt from the RBC Visa Classic Low-Rate Option annual fee for one year, your application must be received by September 30th, 2026, and approved by us. Additional cardholders (co-applicant and authorized user(s)), existing RBC Visa Classic Low-Rate Option cardholders, as well as existing cardholders of any RBC personal credit cards, applying for or transferring to an RBC Visa Classic Low-Rate Option, as of the offer eligibility period, are not eligible for this offer. This offer may not be combined or used in conjunction with any other offer.
Rewards breakdown
Rewards breakdownPoints for every $1 you spend on all your eligible purchases.
NerdWallet's take
NerdWallet's takeScotiabank’s Platinum Amex doesn’t just offer top-tier travel perks — such as emergency medical coverage and airport lounge access — it also comes with a low 9.99% interest rate on purchases and a flat earn rate of 2x Scene+ points per $1 spent. The high $399 annual fee, however, may be too steep for some users. Best for: Frequent travellers who spend big abroad, want airport lounge access and don’t mind using the Scene+ Travel platform to book travel.
Pros
- Low 9.99% APR.
- No foreign transaction fees.
- 10 free airport lounge passes per year.
Cons
- High $399 annual fee.
- Must book through Scene+ Travel platform to earn extra 3x points.
Card details
Card details- Earn up to $2,500* in value in the first 14 months, including up to 80,000¹ bonus Scene+ points.
- Plus earn 2X Scene+ points for every $1 spent on all other eligible purchases.
- Earn additional benefits + up to 4X Scene+ points for every dollar you spend on hotel bookings, car rentals, and things to do with Scene+ Travel, Powered by Expedia.
- No Foreign Transaction Fee
- Comprehensive Travel Insurance coverage
- Mobile Device Insurance coverage
- 10 complimentary Airport Lounge Passes per year
- Platinum VIP Offers+
- American Express Invites®
- Premium Complimentary Concierge Services
- Rates, fees and other information are effective as of October 31, 2025. Subject to change.
- *See Card Provider's website and Card Application for complete card details, terms and current offers. Reasonable efforts are made to maintain accuracy of information.
NerdWallet's take
NerdWallet's takeA low-interest, no-fee card designed to help cardholders keep costs down while offering some practical perks, including trip insurance and car rental discounts. You won’t earn points, cash back or travel miles, but this trade-off could be worthwhile for budget-conscious borrowers focused on paying down a card balance. Best for: Anyone who typically carries a credit card balance or is working to pay down their debt.
Pros
- No annual fee.
- Low 10.9% interest rate on purchases.
- Car rental discounts of up to 15% off at Hertz, Thrifty and Dollar.
Cons
- Doesn’t earn rewards.
- Physical locations only in Ontario and Quebec.
Card details
Card details- 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.
NerdWallet's take
NerdWallet's takeThis card’s low 10.99% interest rate on purchases and low $39 annual fee make it easier for cardholders to pay down debt. But besides the car rental discounts, there are no other rewards or perks. Best for: Cardholders who carry a balance.
Pros
- Low $39 annual fee.
- Low 10.99% interest rate on purchases.
- Low ongoing 13.99% interest rate on balance transfers.
Cons
- No rewards.
- No travel insurance.
Card details
Card details- $39 annual fee.
- Standard Annual Interest Rates of 10.99% on purchases, 13.99% on balance transfers✪, and 24.99% on cash advances.
- Use available credit on your credit card to transfer funds right to your chequing account.
- Around-the-clock-fraud protection.
- Access to 24/7 customer service.
- This card is made from 100% recycled plastic
- ✪, Terms and Conditions apply.
- This offer is not available for residents of Quebec.
- Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.
Rewards breakdown
Rewards breakdownNerdWallet's take
NerdWallet's takeAlthough it doesn’t earn rewards, the RBC RateAdvantage Visa offers a low variable interest rate, no annual fees and a handful of practical perks, including waived DoorDash delivery fees and Petro-Canada fuel discounts. Best for: People who typically carry a balance and prefer a card that saves them money over collecting rewards.
Pros
- No annual fee.
- Low interest rates.
- Fuel discounts of 3 cents per litre at Petro-Canada.
Cons
- Variable rates that fluctuate with prime.
- Doesn’t earn rewards.
- Limited insurance coverage.
Card details
Card details- No annual fee.
- Preferred rates: Prime + 4.99% - 8.99% for purchases and cash advances. The rate you’ll receive depends on your application and credit history.
- Get $0 delivery fees for 3 months from DoorDash after adding the RBC RateAdvantage Visa to a DoorDash account.
- Enjoy unlimited deliveries with $0 delivery fees on orders of $15 or more when paying with the RBC RateAdvantage Visa.
- Get 50 Be Well points for every $1 spent on eligible products at Rexall after linking the RBC RateAdvantage Visa to a Be Well Rexall account.
- Redeem Be Well points faster for savings in-store on eligible purchases; 25,000 Be Well points = $10.
- Save 3¢/L on fuel and always earn 20% more Petro-Points at Petro-Canada after linking the RBC RateAdvantage Visa to a Petro-Points account.
- Use Visa payWave when paying for small purchases.
- Save time by having minimum or full monthly payments automatically withdrawn from your bank account.
- Purchase Security and Extended Warranty Insurance automatically protects card purchases against loss, theft or damage for up to 90 days, and doubles the manufacturer's original Canadian warranty for up to one extra year.
- Optional add-on services include balance protection insurance, 24/7 identity theft and credit protection, RBC road assistance, and travel insurance.
- 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.
NerdWallet's take
NerdWallet's takeThe card’s low 13.99% interest rate on purchases, cash advances and balance transfers can help you pay down debt quicker compared to a card with higher interest rates. But that’s all you're getting from this card. Besides discounts at participating car rental companies, there are no perks, no rewards and no complimentary insurances. Best for: Cardholders who typically carry a balance and want a simple, no-frills credit card.
Pros
- Low 13.99% APR.
- Low $29 annual fee.
Cons
- No rewards.
- No insurance coverage.
Card details
Card details- 0.99% introductory interest rate on balance transfers for the first 9 months (2% fee per cash advance, 13.99% after that annual fee $29).¹ Plus no annual fee in the first year.¹
- Plus no annual fee for the first year.¹
- Save hundreds of dollars in interest a year.
- Pay down balances faster.
- Simplify your monthly payments.
- Rates, fees and other information are effective as of October 31, 2025. Subject to change.
- *See Card Provider's website and Card Application for complete card details, terms and current offers. Reasonable efforts are made to maintain accuracy of information.
Methodology
BACK TO TOPBeginner's guide to low-interest credit cards
How do low-interest credit cards work in Canada?
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.
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.
How do credit card interest rates work?
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.
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).
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%.
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.
Here's an example of how credit card interest is charged:
Let’s say your annual rate is 20%. When you divide that by 365, you get a daily rate of 0.0548%.
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.
How does a credit card grace period work?
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.
» Not into math? Use our credit card interest calculator.
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
What is the lowest interest rate on a Canadian credit card?
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.
Does paying interest on a credit card affect your credit score?
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.
DIVE EVEN DEEPER
Shannon Terrell