Are you planning to apply for a good credit card offering a bulk of features and benefits? Here we have compiled a list of the Best Low Interest Rate Credit Cards popular in Canada.
Credit Cards: An Introduction
A credit card is a scary piece of rectangular plastic instrument that gives us the ability to borrow funds from financial institutions. There is a popular notion that it is one of the most dangerous tools of debt that can lure you and let you spiral amidst liabilities. However, if we use it in a disciplined and a planned manner, it can be a very helpful tool to aid personal finances.
Credit cards are generally offered by banks and it can be used by us to pay utility bills and for making purchases. It comes with an interest rate and you must pay monthly repayments that consists of the interest payments and a part of the principal. Apart from this you need to pay credit card charges on the due date.
A credit card is easy to receive as your financial position is not checked for this, nor are you required to pledge any of your assets for the purpose of using a credit card. You might have also heard about Virtual Credit Cards recently. In short, credit cards are a handy financial tool to incur various expenses.
Best Low Interest Rate Credit Cards Canada
Let us explore the top 5 credit cards in Canada that have low interest rates.
1. HSBC +Rewards Mastercard
If you apply for this card within 28th February 2023, you get a welcome offer of 35,000 points that equates to $175 travel value plus a waiver of annual card fee. Otherwise, the card is charged at $25 per annum. You get the card with an interest rate of 11.90% on purchases, cash advances and balance transfers. We have listed its features below:
- You’ll be eligible to get 2 points, whenever you spend $1 on eligible dining or entertainment purchases and 1 point per $1 on everything else as rewards. The points can be redeemed for travel, gift cards, merchandise purchase and other financial rewards.
- Insurance protection
- Supported by ApplePay
- Tap and Go
- Zero liability on proven theft
- Chip and PIN protection.
The card has received the following awards:
- Winner of “Best Low Interest Credit Card in Canada 2022” by Milesopedia
- Winner of the 2021 creditcardGenius.ca best low interest credit card
- Winner of the 2021 HowToSaveMoney.ca best low interest credit card
2. CIBC Select Visa Card
The card is backed by one of the big five banks in Canada. As an introductory offer you can use the card for nil interest rate for the first 10 months and you can transfer your credit to CIBC from other service provider at just 1% transfer fee. After such period your interest rate for purchases and cash advances is 13.99% and the annual card fees is $29.
You also get cash back of 3% on gas and groceries, 2% on dining, recurring bill payments and transportation and 1% on all other purchases. This applies after your welcome offer period comes to an end.
Your debt is insured for Common Carrier Accident Insurance at $100,000. You can opt to buy emergency travel medical insurance and payment protector insurance for credit card.
You must receive a minimum $15,000 annual household income to be eligible for this card.
3. Scotiabank Value Visa Card
This card is offered by one of the big five banks of Canada. It comes with an annual card fee of $29 that is waived for the first year. You need to take a minimum credit of $500. It charges an interest rate of 12.99% on purchases, cash advances, bank transfers and other transactions. We have listed its noteworthy aspects below:
- Tap at check out using Visa PayWave
- Supported by ApplePay and GooglePay.
- You can save on car rental at AVIS locations.
- You get multiple supplementary cards.
4. BMO Preferred Rate MasterCard
If you sign up with the BMO credit card, as a promotional offer, you are charged only 0.99% on balance transfers for the first nine months and a 2% transfer fee. You are not charged any annual credit card fee for the first year. The standard rate after this is $20 annual fees, 12.99% interest rate for purchases and 15.99% for cash advances.
The card promises us the below:
- Security is offered via advanced micro chip technology that works only with the set personal identification number (PIN).
- You are required to go through the Mastercard Identity Check for online purchases. It enhances the level of security for hassle-free payment process.
- Worldwide acceptance. You can contact the 24 hours help line at 1-800-247-4623 (for Canada & US) and 1-314-275-6690 (Outside North America).
- Help on the road.
- If there is a theft or if your card is damaged then an extension of warranty is given for a maximum of one year. In addition, you will not be liability for the usage of your card if you prove that it is stolen.
- You receive electronic statement and notifications.
- You can add and use your card in ApplePay and GooglePay.
Having listed all the advantages of BMO credit card, its disadvantages are that the debt is not insured, you do not receive any rewards or cashbacks.
5. MBNA True Line Mastercard
The highlight of MBNA True line card is that you do not have to pay any annual maintenance fees. It offers a introductory offer of 12.99% on balance transfers and cheque access for 90 days, after which interest on purchase is still 12.99% whereas, interest on cash advances is 24.99%.
Its notable attributes are as follows:
- Emergency card replacement in 10 days.
- You can get increases coverage
- Contactless card
- Zero liability in case of theft
- Security via chip, PIN and CVC.
- You can opt for payment plans with term period varying from 6, 12 or 18 months.
- Supported by ApplePay.
- You can include a maximum of 9 authorized users to the account for free.
The cons are the card does not offer any insurance benefits and is not available in Quebec province of Canada.
Low Interest Rate Credit Cards Canada
We have listed the trending credit cards in Canada that offer low interest rate and offer the best features. Although these credit cards give you easy and quick access to money, cash backs, rewards, offers, protection and insurances, you must use the card wisely. If you get attracted by the offers and indulge in over using of the card, you might end up in a debt trap.
You may also like to discover the Best Budgeting Apps in Canada and learn their advantages.
So, this was our list of Top Credit Cards in Canada based on our research and user preferences. Do you have any other Canadian credit card to add to our collection above. Feel free to discuss in comments or email us with details.