Best Low-Interest Credit Cards in Canada
A low-interest credit card can help reduce the cost of carrying a balance. Some are best for transferring existing debt. Others are better for lowering the rate on future purchases.
Low-interest credit cards: compare vs. choose
BACK TO TOPUse the comparison table to scan low-interest cards in Canada, then see NerdWallet’s picks for the cards that stand out most.
Use this table to compare low-interest credit cards by annual fee, purchase rate, balance transfer offer and best use case. Not every card in this table is one of our top picks, but each may be worth considering depending on what you need.
| Card | NerdWallet rating | Annual fee | Interest rates | 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% | |
| 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% | |
| Scotiabank Platinum American Express® Card | APPLY NOW on Scotiabank's website | |||
 APPLY NOW on Scotiabank's website | 5.0/5 | $399 | 9.99% | |
| 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% | |
| TD Low Rate Visa* Credit Card | APPLY NOW on TD's website | |||
 APPLY NOW on TD's website | 4.1/5 | $25 First year rebate | 12.90% | |
These are the low-interest cards we think stand out most clearly for common needs.
Rewards breakdown
Rewards breakdown
NerdWallet's take
NerdWallet's takeWith no annual fee and a low 12.99% interest rate on purchases, the MBNA True Line Mastercard is an affordable, no-frills option to pay down debt and build credit. Just be mindful of the higher 24.99% ongoing rate for cash advances. Best for: Credit builders who carry a balance and don’t mind skipping the rewards.
Pros
- No annual fee.
- Low 12.99% interest rate on purchases.
- A minimum of 5% off on rental car bookings at Avis and Budget.
Cons
- The 24.99% cash advance rate is considerably higher than the purchase rate.
- No rewards.
Card details
Card details- No annual fee.
- Standard Annual Interest Rates of 12.99% on eligible purchases, 17.99% on balance transfers✪, and 24.99% on cash advances.
- You could get a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ completed within 90 days of account opening, with a 3% transfer fee.
- Around-the-clock fraud protection.
- Use available credit on your credit card to transfer funds right to your chequing account.
- 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 takeThis low-fee card doesn’t earn rewards, but its gas discounts, fee-free global money transfers and low ongoing interest rates could be a valuable trade-off. Best for: Those who typically carry a card balance and want to save on interest.
Pros
- Low $29 annual fee.
- Low 13.99% purchase and cash advance interest rate.
- Up to 10 cents off per litre at Pioneer, Fas Gas, Ultramar and Chevron gas stations.
Cons
- Doesn’t earn rewards.
- Limited insurance coverage.
Card details
Card details- Transfer your credit card balance of $100 or more - Get 0% interest for up to 10 months with a 1% transfer fee† and a two year annual fee rebate.†
- Check full offer details below†:
- Transfer your credit card balance of $100 of more and get 0% interest for up to 10 months with a 1% transfer fee.†
- Transfer up to 50% of your assigned credit limit.†
- If you choose to carry a balance and you make your minimum payments on time, a balance transfer could save you money on interest.
- Take advantage of this 0% introductory interest rate on balance transfers of $100 or more for your first 10 months. You’ll only have to pay a 1% fee† when you transfer your balance from another card to the CIBC Select Visa Card.
- This balance transfer offer is only available at the time of your online application.† Simply tick the checkbox to select the balance transfer option when you’re filling out your application. Once you take advantage of this offer, you will have a promotional rate balance on your account. As a result, you will lose your interest-free grace period on new purchases unless you pay your amount due, including any promotional rate balances, in full each month. While you will enjoy the promotional rate on the balances you transfer by using this offer, new purchases will be subject to the purchase interest rate.
- Balance transfers of amounts less than $100 are not eligible for this promotional balance transfer offer and will be subject to the regular interest rate for Cash Advances applicable to your account.
- Get a free Skip+ membership when you link your eligible CIBC credit card. Plus, enjoy $0 delivery fees and earn a $10 monthly voucher.†
- Fuel up for less - Link your card with Journie Rewards to save up to 10 cents per litre at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.†
Rewards breakdown
Rewards breakdownNerdWallet's take
NerdWallet's takeThis low-rate, low-fee card is ideal for those who typically carry a balance. You won’t earn any points or cash back, but getting a discount on interest charges could be a worthwhile tradeoff for the right cardholder. Best for: Anyone who wants to prioritize paying down their card balance over earning rewards.
Pros
- Low $29 annual fee.
- Low 13.99% interest rate.
Cons
- Doesn’t earn rewards.
Card details
Card details- Get a 0% introductory interest rate on Balance Transfers for 18 months with a 2% transfer fee and we’ll waive the $29 annual fee for the first year.*
- Enjoy our lowest interest rate of 13.99% on purchases.*
- Free extended warranty and purchase protection.*
- Zero Dollar Liability: protects you from unauthorized use of your credit card.*
- Worldwide acceptance at over 30 million locations.*
- Enjoy three months of Instacart+ and a $5 monthly Instacart credit when you enroll your eligible BMO Credit Card.*
- *Terms and conditions apply.
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
Rewards breakdown
Rewards breakdownNerdWallet'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.
Rewards breakdown
Rewards breakdownNerdWallet's take
NerdWallet's takeThis low-fee, low-interest card is designed to cut borrowing costs. But it doesn’t earn rewards, and its prime-linked variable rates are subject to change. Best for: Cardholders who typically carry a balance.
Pros
- Low interest rates.
- Low $35 annual fee.
- No minimum income requirements.
Cons
- Variable rates that fluctuate with prime.
- Doesn’t earn rewards.
Card details
Card details- No annual fee for additional cards.
- Variable interest rates are tied to the prime rate, which is the annual variable interest rate posted by National Bank.
- Purchases: 4% + the prime rate, or a minimum of 8.90%.
- Balance transfers and cash advances: 8% + the prime rate, or a minimum of 12.90%.
- 21-day grace period for purchases.
- No grace period applies to balance transfers and cash advances.
- Contactless payments so you can spend less time at checkout with Tap & Go technology.
- Purchase protection to protect your new purchases from theft or damage for up to 90 days after the date of purchase.
- Extended warranty offers up to double the manufacturer's warranty for most items purchased using your credit card.
- Secure online purchases with Mastercard® ID Check, a service that protects you against fraud by verifying your identity when making online purchases.
- Benefit from Mastercard's Zero Liability policy — you won't be liable for unauthorized transactions completed with your card.
- Enjoy unique experiences with Priceless Cities. Get room upgrades, exclusive menus and many other surprises.
- $500 minimum credit limit.
- 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.
Rewards breakdown
Rewards breakdownNerdWallet'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 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 $3,000* in value in the first 14 months, including up to 100,000¹ 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 July 2, 2026. 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.
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.
Rewards breakdown
Rewards breakdownNerdWallet's take
NerdWallet's takeA straightforward, no-frills option for credit builders. This version of the Home Trust Secured Visa comes with a low $59 annual fee and 14.9% interest rate. A no-fee version is available, but comes with a higher 19.99% interest rate. Best for: Credit builders who value low interest rates over perks and rewards.
Pros
- Low 14.9% interest rate.
- Broad security deposit range of $500 to $10,000.
- No-fee option available.
Cons
- No rewards.
- Not available in Quebec.
Card details
Card details- $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.
Methodology
BACK TO TOPMore about our picks
BACK TO TOPMBNA True Line Mastercard
Our pick for: Best overall low-interest card
The MBNA True Line Mastercard is one of the most useful low-interest cards because it does a few important things at once: no annual fee, low purchase rate and a promotional balance transfer offer.
Good for: People who want one low-interest card that can help with both existing debt and future purchases.
Watch for: This card is not available to residents of Quebec
CIBC Select Visa Card
Our pick for: Low transfer fees
The CIBC Select Visa Card is a strong choice if you want to move existing credit card debt and keep transfer costs low. Its balance transfer fee is lower than many competing offers.
Good for: People who want a lower-cost balance transfer offer.
Watch for: Balance transfer limits and promo rules.
BMO Preferred Rate Mastercard
Our pick for: A longer payoff window
The BMO Preferred Rate Mastercard gives cardholders a longer promotional period to pay down transferred debt.
Good for: People who need more time to pay off a transferred balance.
Watch for: The transfer fee still adds to the total cost.
Desjardins Flexi Visa
Our pick for: Best no-fee low-interest card
The Desjardins Flexi Visa offers a low purchase rate without an annual fee. That makes it one of the cleaner choices for people who want lower interest without paying to hold the card.
Good for: People who want a no-fee card with a low purchase rate.
Watch for: It does not earn rewards.
National Bank Syncro Mastercard
Our pick for: Best low ongoing rate
The National Bank Syncro Mastercard has a variable purchase rate tied to National Bank’s prime rate, with a low minimum rate. It may be useful if you want a very low ongoing rate and understand that the rate can change.
Good for: People who want a low ongoing APR and are comfortable with a variable rate.
Watch for: The rate may rise if prime rises.
MBNA True Line Gold Mastercard
Our pick for: Best fixed low purchase rate
The MBNA True Line Gold Mastercard keeps the value proposition simple: a low fixed purchase rate for a modest annual fee.
Good for: People who carry a balance and want a predictable purchase rate.
Watch for: It does not have the strongest balance transfer offer.
Scotiabank Platinum American Express Card
Our pick for: Best rewards card with low-enough interest rates
The Scotiabank Platinum American Express Card is not the cheapest low-interest card, but it is one of the rare rewards cards with meaningfully lower interest rates. It may make sense if you want Scene+ points, travel perks and no foreign transaction fees without paying a typical rewards-card APR.
Good for: People who want rewards and premium benefits, but still care about interest rates.
Watch for: The $399 annual fee. If your main goal is paying down debt, a lower-fee low-interest card is probably a better fit.
RBC Visa Classic Low Rate Option
Our pick for: Best Big Bank low-rate card
The RBC Visa Classic Low Rate Option is a simple low-rate card with a small annual fee. It may be most appealing to RBC customers who want fixed rates from their main bank.
Good for: RBC customers who want a low fixed rate.
Watch for: Other cards may have stronger balance transfer promos.
Home Trust Secured Visa
Our pick for: Best secured low-interest card
The Home Trust Secured Visa may be useful if you need a secured card and want a lower-rate option.
Good for: People building or rebuilding credit.
Watch for: The lower-rate version has an annual fee.
How to choose a low-interest credit card
Choose based on the balance you’re trying to manage.
If you already have credit card debt, start with balance transfer offers. Compare the promotional rate, transfer fee and promo length.
If you expect to carry new purchases, focus on the ongoing purchase rate. A short promo will not help much if the regular rate is too high afterward.
If you rarely carry a balance, a low-interest card may not be the best fit. A no-fee rewards card or cash-back card may offer more value.
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.
Low-interest card vs. balance transfer card
A balance transfer card is usually best for existing debt. A low-interest card is usually better for future balances.
The best balance transfer offer is not always the best long-term card. If you will not pay off the balance before the promo ends, compare the regular interest rate, too.
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.
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.
» 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.
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.
Frequently asked questions
What is a low-interest credit card?
A low-interest credit card charges a lower purchase rate than a typical credit card. Many standard cards charge around 20% or more, while low-interest cards often charge less.
Are low-interest credit cards worth it?
They can be worth it if you carry a balance. If you pay your balance in full every month, interest rate matters less.
Is a balance transfer better than a low-interest card?
A balance transfer may be better if you already have credit card debt and can pay it down during the promo period. A low-interest card may be better if you need a lower ongoing rate.
Do low-interest cards earn rewards?
Most do not. Cards that offer both rewards and low interest usually have higher annual fees.
Does paying credit card interest hurt your credit score?
Not directly. Missed payments, high balances and high credit utilization can hurt your score.
JUMP TO:
Looking for the best card overall?
Low-rate credit cards are only one type of card. If you want to compare low-interest options against rewards, balance transfer offers and no-fee picks, start with our guide to the best credit cards in Canada.
DIVE EVEN DEEPER
Shannon Terrell