Low-interest credit cards can have interest rates up to half those of traditional credit cards. This means that you could save a ton of money on interest. Credit card interest is also calculated daily on any balance you carry, which can result in much higher interest costs than other types of borrowing, making it important to pay attention to the credit card interest rate to save yourself some money.
Low-Interest Card Options in Canada
In Canada, there are plenty of low-interest credit cards with promotional rates. When selecting the right credit card for you, be careful and pay attention to the fine print. Make sure you’re aware of any extra charges, whether there’s an annual fee, and any rewards associated with the card. It’s also important to pay attention to whether the cards are variable-rate or fixed-rate.
Let’s take a look at some of the best low-interest credit cards in Canada.
MBNA True Line Mastercard
This credit card is known not only for its low purchase interest rate but also for its low balance transfer interest rate. This card is also known for offering awesome promotional rates. It’s most commonly used as a balance transfer credit card.
The purchase interest rate for the True Line Mastercard is fixed at 12.99%. The standard balance transfer rate is 17.99%. Cash advance rates are 24.99%, plus there are no annual fees. Currently, MBNA has an offer of 0% interest on balance transfers for 12 months, pending approval. That said, there is a 3% fee (minimum $3.50) on each balance transfer. Transfers must occur within 90 days of your account opening.
With this card, you can add up to 9 authorized users at no additional fee. There’s also the MBNA payment plan, which allows you to pay for large purchases in installments. You have a choice of 6, 12 or 18 months, and you can get this on purchases over $100. Plus, the MBNA card is available to use with Apple Pay. You can even calculate how much interest you could save by doing a balance transfer instead of staying with your old credit card.
BMO Preferred Rate Mastercard
The BMO Preferred Rate Mastercard is one of BMO’s most popular credit cards. The purchase interest rate is only 13.99%, and the annual interest rate on cash advances is only 15.99%. There’s also a low annual fee of $29, which is waived for the first year.
Some features included with this card are:
- No fee for an additional cardholder
- Extended warranty protection
- Purchase protection
- 24/7 emergency support anywhere in the world
This card also includes BMO Pay Smart. Pay Smart lets you make large purchases and break them into affordable installments with a low fee. If you decide to open a card now, you can get a promotional rate of 0% interest on balance transfers for your first 18 months, with a 2% balance transfer fee.
CIBC Select Visa Card
CIBC offers its own low-interest credit card, known as the Select Visa card. This card offers 13.99% on purchases and 13.99% on cash advances. Currently, there’s also a welcome offer of 0% on balance transfers for up to 10 months and only a 1% fee. This card has a $29 annual fee that’ll be rebated for the first year.
Some perks included with this card are:
- Insurance coverage
- Fuel savings
- Global money transfers
All CIBC credit cards have different insurance coverage. One of the insurance coverages included with this card is Common Carrier Accident Insurance. The optional insurances you can get are CIBC Travel Medical Insurance and CIBC Payment Protector Insurance for Credit Cards.
You can save up to 10 cents per litre when you link your Journie Rewards card with your CIBC card at participating Pioneer, Fas Gas, Ultramar and Chevron stations. You can also send global money transfers with no transaction fees or interest, as long as you make your payment by the due date.
MBNA True Line Gold Mastercard
The MBNA True Line Gold Mastercard is another MBNA low-rate Mastercard. The purchase interest rate on this card is 10.99%; the balance transfer rate is 13.99%, and the cash advance rate is 24.99%. This card, however, does have an annual fee of $39.
Just like the other MBNA credit card, this card works with Apple Pay. You can also have up to 9 authorized users for no additional fee. However, with this card, there’s no balance transfer offer.
Scotiabank Value Visa Card
Scotiabank also offers a low-rate credit card with a fixed interest rate of 13.99% on purchases, balance transfers, and cash advances. There’s also no additional cash advance fee. Each additional card costs $0, and the minimum credit limit is $500. There’s also an annual fee of $29.
Right now, Scotiabank has a welcome offer on its Value Visa card. There’s 0% interest on balance transfers for the first 9 months (with a 1% transfer fee) and no annual fee for the first year.
This card includes Visa PayWave. You can also save up to 25% on car rentals at participating Avis and Budget locations. Optional Scotia Credit Card Protection is available in two levels. Basic Coverage includes:
- Life Benefits
- Critical Illness Benefits
- Hospitalization Benefits
Comprehensive Protection includes:
- Life Benefits
- Critical Illness Benefits
- Hospitalization Benefits
- Disability Benefits
- Job Loss Benefits
- Strike or Lockout Benefits
This card also gives you access to Scotia SelectPay, which offers an interest-free way to pay off purchases over $100 for a low fee. Plus, if you have a Scotiabank bank account and the Preferred or Ultimate package, you can have your annual fee rebated.
RBC Rate Advantage Visa
The RBC Rate Advantage Visa card is a low-rate Visa card where the interest rate depends on your individual financial situation. Annual variable interest rates on this card for purchases range from prime plus 4.99% to prime plus 8.99%. This is the same for cash advance rates as well. There’s no annual fee and no fee for additional cards.
Some awesome features included with this card are:
- Purchase Security and Extended Warranty Insurance
- Cash savings with RBC offers
- Save 3 cents per litre on fuel (fuel discounts) and earn 20% more Petro-Points with Petro-Canada
- Earn and redeem Be Well points
- 3 months complimentary DashPass subscription
- $0 delivery fees on eligible DoorDash orders of $15 or more when you pay with your card
There are also some great optional additions to your card, including:
- Travel Insurance
- RBC Road Assist
- Balance Protector Max Insurance
- Identity Theft and Credit Protection
The one thing you should consider with this card is the bank’s current prime rate. Prime rates vary depending on inflation and the Bank of Canada so they can change several times a year. As of November 2026, the prime rate in Canada is 4.70%. This makes the lowest variable interest rate for this card 9.69% and the highest 13.69%. These numbers will change, though, as the bank’s prime rate does.
RBC Visa Classic Low Rate Option
The RBC Visa Classic Low Rate Option is a low-rate card that has an annual fee of only $20. The purchase interest rate is 12.99% (14.99% on cash advances and balance transfers), and the card includes purchase security and extended warranty insurance. The other perks on this card are the same as those on the RBC Rate Advantage Visa.
Scotiabank Platinum American Express
The Scotiabank Platinum American Express card is a good option for those looking for a low-rate card with impressive rewards. The rewards included with this rewards card are travel perks, hotel perks and Scene+ points you can earn and redeem. You can even take large purchases and break them into 3, 6, 9, or 12-month installments to save more on interest.
The interest rate for this card is fixed at 9.99% on all transactions, but the annual fee is very high at $399. There’s a minimum credit limit of $10,000 and a $99 fee for each supplementary card. While this is a hefty annual fee, this card includes travel rewards, luxury travel privileges, and insurance coverage. Plus, you earn 2 Scene+ points per $1 on eligible purchases.
The exclusive additional benefits included with this card are:
- 10 complimentary airport lounge access passes
- No foreign transaction fees on foreign currency purchases (only the exchange rate)
- Scene+ travel points
- Premium concierge services
- Special access with American Express Invites
- Beyond travel rewards
- Access to unique events with a VIP pass
- Hertz #1 Club Gold Member
This card is ideal for those looking for a low rate and who love to travel. Most of the perks on this card are travel-related, and it has a high limit, so you will most likely need a higher credit score to get approved. That’s pretty common with low-rate credit cards, though. The higher your credit score, the lower the rate.
National Bank Syncro Mastercard
National Bank is another financial institution that offers a low-rate Mastercard. It’s called the Syncro Mastercard. This is a variable-rate credit card with an interest rate equal to the prime rate plus 4%. The minimum interest rate on this card is 8.90%. Since prime plus 4% is currently below that floor, the rate is 8.90% as of November 2026.
The variable interest rate on cash advances and balance transfers is prime plus 8%, with a minimum rate of 12.90%, which is the rate currently in effect. There’s also an annual fee of $35. Because the rate is variable, it is worth checking periodically.
Some benefits included with this card are:
- Contactless payment
- Purchase protection
- Extended warranty protection
- Fraud protection
- Mastercard ID check on online purchases
- Priceless cities for travel perks while you’re travelling
- Mastercard’s zero liability policy
Desjardins Odyssey Visa Infinite Privilege
The Desjardins Odyssey Visa Infinite Privilege card is not just a low-rate credit card; it’s also a rewards credit card. With this card, you can earn cash back on all your purchases with a fixed interest rate of only 11.9%. That said, there is an income requirement you must meet to get approved. You need a personal income of $150,000 or a combined household income of $200,000. There’s also an annual fee of $295 for Desjardins members and $395 for non-members. This card has some great features, but it also has one of the highest annual fees on this list.
As for rewards that come with the Infinite Privilege card, you can earn up to 4% back on eligible purchases. These earnings are called BONUS DOLLARS and can be used toward gift cards and other products and services. The earnings you get depend on what you’re purchasing. Let’s take a look at the different rates.
- 3% back on groceries
- 4% back at restaurants
- 4% back on entertainment
- 4% back on alternative transportation
- 3% back on travel
- 1.75% back on all other purchases
Since January 1, 2024, the travel rate has been capped. You’ll earn 3% back on your first $25,000 in travel purchases, and then you’ll earn 1.75% on the rest. This cap resets every year. Other changes took effect at the same time: convenience store purchases are no longer included in groceries, and sporting events are no longer included in entertainment. You’ll only earn 1.75% on these purchases.
This credit card also includes:
- Comprehensive travel insurance for up to 60 days in a row
- Montreal-Trudeau Airport lounge access
- Concierge services
- Rental car insurance
- 25% off car rentals for Hertz, Thrifty and Dollar
- Mobile device insurance
- Purchase protection insurance
- Extended warranty coverage
- A 21-day interest-free grace period on all purchases
TD Low Rate Visa Card
Right now, the TD Low Rate Visa Card offers a promotional introductory interest rate of 0% on purchases for the first 6 months. You can also receive a rebate on the annual fee for the first year. The annual fee after that is $25, with a purchase interest rate of 12.90%, a cash advance rate of 12.90%, and no annual fee for additional cardholders.
With this card, you can also purchase optional travel medical insurance and trip cancellation/trip interruption insurance. You can also earn more Starbucks stars at participating Starbucks stores.
Desjardins Flexi Visa
The Desjardins Flexi Visa Card is another low-rate credit card. It has no annual fee, a purchase interest rate of 10.9%, and a cash advance rate of 12.9%. They also offer:
- Travel insurance for trips up to 3 days
- Discounts on car rentals
- Mobile device insurance up to $1,000
- Purchase protection and extended warranty coverage
- 25-day grace period
American Express Essential
The American Express Essential credit card is the low-rate card that you can get with American Express. It has an annual fee of $25, an annual interest rate of 12.99%, and there’s no annual fee for additional cards.
The benefits that you can get with this card include:
- $100,000 travel accident insurance
- Front of the Line Amex Presale and Reserved Tickets
- Onsite Benefits with Amex Experiences
- Buyer’s Assurance Protection Plan
- Purchase Protection Plan
- 24/7 Customer Service
- Fraud Protection Guarantee
- Emergency Card Replacement
- Amex Offers
- American Express Travel Online
- Plan It – The American Express Installment Program
24-Month 0% Interest Credit Cards in Canada
While there are a few 0% interest rate credit cards available, these are promotional rates. They also don’t extend to 24 months. One of the longest 0% balance transfer offers currently available is on the BMO Preferred Rate Mastercard, with 18 months of 0% interest. We covered this above.
That said, just because you can’t get the 0% rate for 24 months doesn’t mean you shouldn’t get it. With a 0% annual percentage rate, you can greatly reduce your interest costs when trying to pay off your credit card. It can also help your credit report by increasing your total available credit. That said, once the balance transfer is completed, you want to pay that card off as soon as possible before the promotional period ends. The easiest way to do it is to consistently pay a large sum every monthly billing period and watch your monthly statement go down.
This can also help you further increase your credit score and achieve excellent credit. This is because your average daily balance will decrease, and you won’t incur any interest on your billing cycle for the statement period. However, if you make an unexpected purchase, you may see interest charges on your billing statement.
What Are Some Current Visa and Mastercard Credit Card Rates in Canada?
In Canada, there are plenty of different credit cards that offer different rates. The type of credit card you get and the interest rate you’re approved for all depend on your financial situation as well as your credit score. The average purchase interest rate for a credit card in Canada is 19.99%, but it can sometimes reach 22%. There are, however, low-rate credit card options. These cards are often more difficult to get approved for, but their interest rates range from about 8.90% to 16%, depending on the credit card issuer.
While low-rate credit cards are better for those who hold an outstanding balance on their credit card, they’re not ideal for those looking to earn rewards. Often, the credit cards that offer the best rewards have an interest rate of 19.99% or higher. If you don’t hold any outstanding debt on your credit card, though, you could earn points to help you save money on your other purchases.
Cheapest Credit Card in Canada
When you compare all of the low-interest credit cards that you could get in Canada, one of the best all-around options is the MBNA True Line Mastercard. Not only can you get a balance transfer and avoid paying interest for a while, but when you do start paying interest, your rate is only 12.99%.
What Are the Best Credit Cards for Paying Off Debt?
When it comes to paying off debt with a credit card, you ideally want to give yourself enough time to pay it off without incurring interest. If you’re using a credit card to pay off another credit card, then you want a 0% balance transfer credit card. The most common is the MBNA True Line Mastercard. Usually, you can get 9 to 18 months with no interest and only a small transfer fee when you transfer funds. It’s best to keep an eye out for when these balance transfer promotions come up.
Best Credit Card for Boosting Your Credit Score
If you have a low credit score and are trying to rebuild your credit, a secured credit card may be the best option for you. Secured credit cards work similarly to regular credit cards except that you have to pay a deposit. That deposit is kept until your credit card is paid off in full and cancelled. It’s a good way to show lenders that you can be financially responsible while increasing your credit score.
In terms of regular credit cards, it doesn’t matter so much which credit card you use, but how you use it. For your credit card to increase your credit score, you have to do more than just make your monthly minimum payment on time. You must keep your credit utilization below 30%. This is your total utilization, though, not just your credit card. It can be a combination of revolving credit lines, such as credit cards and lines of credit. The lower you keep your credit utilization, the more positive an impact it’ll have on your credit score.
Comparison of Credit Card Rates
| Credit Card | Purchase Interest Rate | Annual Fee | Variable or Fixed Interest |
| MBNA True Line Mastercard | 12.99% | $0 | Fixed |
| CIBC Select Visa Card | 13.99% | $29 | Fixed |
| MBNA True Line Gold Mastercard | 10.99% | $39 | Fixed |
| Scotiabank Value Visa Card | 13.99% | $29 | Fixed |
| RBC Rate Advantage Visa | Prime + 4.99%–8.99% | $0 | Variable |
| RBC Visa Classic Low Rate Option | 12.99% | $20 | Fixed |
| Scotiabank Platinum American Express | 9.99% | $399 | Fixed |
| National Bank Syncro Mastercard | Prime + 4% | $35 | Variable |
| Desjardins Odyssey Visa Infinite Privilege | 11.9% | $295 – $395 | Fixed |
How Do You Avoid Paying Interest on a Credit Card?
In Canada, most credit cards have a 21-day grace period. That means if you pay your balance in full by the due date each month, you can save on interest. If you do have a balance, though, as soon as you pay it off, the interest stops.
Another way to avoid paying interest is to get a balance transfer card. Many cards offer a promotional balance transfer that gives your previous high-interest balances a period of time with no interest. Instead of paying the balance in full, you can pay your transferred balance over a period of months without incurring any more borrowing costs. There are plenty of balance transfer offers for existing credit card debt, but be sure to pay attention to the rate after the promotional period.
Negotiating a Lower Interest Rate With Your Bank
While getting lower interest rates on your credit card can be difficult, it is possible. While they usually won’t change the current purchase rate on your existing credit card, many will switch you to a low-rate card. However, if you have a rewards card, you may need to surrender it when you transfer your balance. Alternatively, they may be able to switch you to a promotional rate.
Can You Get Low-Interest Credit Cards in Quebec?
There are several low-rate credit card options for residents of Quebec. Each of these offers its own perks, and we’ve already discussed them above. They are:
- National Bank Syncro Mastercard
- Desjardins Flexi Visa
- TD Low Rate Visa Card
- BMO Preferred Rate Mastercard
How Is APR Different From an Interest Rate?
The difference between an APR and an interest rate is that an APR includes the interest rate plus any additional fees. This includes any origination fees or other fees charged when the loan is made. The interest rate is just the cost you pay the lender for borrowing the money, in addition to the principal.
Missing a Payment on a Low-Rate Card
When you miss a payment on a low-rate credit card, you have to pay interest on the balance you carry, plus any late fee your card issuer charges. You will also lose your grace period, so interest will start accruing right away. Missed payments can also trigger a much higher penalty interest rate. For example, TD and Scotiabank can raise the purchase rate on their low-rate cards to 24.99%.
How Low-Interest Cards Charge Foreign Transaction Fees
In addition to your standard interest rate, most Canadian credit cards charge a 2.5% foreign transaction fee. Unless you have a credit card that charges no FX fees, you should expect to be charged this amount.
Having a Low-Interest Card and a Rewards Card
Having both a low-interest card and a rewards card is a common strategy for earning rewards without incurring a high balance on the low-interest card. With this strategy, the rewards card is used for your daily spending, while you pay the balance in full every month. This allows you to keep earning rewards without paying a high interest balance.
The low-rate credit card is intended for emergencies. This way, if you’re unable to pay off the balance in full right away, then you can leave a balance with less interest paid.
How Minimum Payments Impact Your Total Interest
When you make a minimum payment, your credit card typically applies the funds to your interest first. The remaining amount is then allocated towards your principal balance. Because of this, a large share of each minimum payment can go toward interest, so your balance goes down slowly. If you pay your balance in full by the due date, then you can avoid interest charges altogether.
Low-Interest Card Vs. Personal Loan Vs. Line of Credit
When you’re looking into borrowing money, there are a few different options, including low-interest cards, personal loans, and lines of credit. While all of these are great credit options, they may not be the best fit for every situation.
Low-Interest Cards
These are a type of revolving credit, meaning you can continually use the balance as long as you make payments and have available credit. They have a lower interest rate than traditional credit cards, and interest is only charged on unpaid balances. The minimum payments are flexible and are based on your balance.
Personal Loans
These are term loans and are paid out in one lump sum. They come in both fixed and variable rates, and interest is charged on the remaining balance over the loan term. You pay fixed monthly payments until it’s paid in full. This is a common option for consolidating debt or purchasing a large item.
Lines of Credit
Lines of credit are also a form of revolving credit. The interest rates are usually variable and are tied to the prime rate. When it comes to minimum payments, it’s often just the interest payment that’s due, and they’re most commonly used for ongoing projects or as extra cash.
What Are Some Common Mistakes That Are Made With Low-Interest Cards?
When it comes to low-interest cards, a common mistake is treating a promotional 0% interest rate as permanent. When this period ends, the sudden interest can add up quickly. Any balance left when the promotion ends starts accruing interest at the card’s regular rate.
Many people also end up only making the minimum payments. Even at a lower rate, much of each minimum payment goes toward interest, so the principal decreases slowly, and the balance becomes difficult to pay off. Plus, if you keep your balance above 30% of your credit limit, you can end up hurting your credit score.
