When it comes to low-interest credit cards, there is a lot of talk about here in Canada. Low-Interest Credit cards are good for you if you are more likely to be accumulating debts or in simple terms, if you are carrying over unpaid credit card balances every month.
Are you seriously tired of paying high credit card interest payments? The interest rates will rise up if you miss a minimum payment due.
If you are trying to pay off a certain balance and you need all the amount of money you can gather, then you need to consider getting yourself a low-interest credit card. In the low-interest credit cards, you have the option of paying half of the usual 19.99% interest rate that the normal credit card users pay. Why do you have to go through all that stress?
There are a lot of low-interest credit card companies in Canada. in this article, we will be reviewing and comparing the best 4 that are widely used and are generally accepted in Canada.
What Are Low-Interest Credit Cards In Canada?
If you are aware of the way credit cards work In Canada, you’ll probably know the answer to this question.
Still, there are the cashback credit cards, points cards like CIBC’s Aventura, every major bank has a points card of its own and different names associated, then you have the Air Miles and Aeroplan credit cards.
When you make regular day-to-day purchases using your credit cards, you end up with a monthly statement. Now, you have two options – first, to pay off the balance in full (which is what you need to do).
But, what if on a certain month, out of the blue, you won’t be able to make the full payment and carry over a part of your credit card unpaid amount. That’s where the interest fees start to kick in.
Usually in Canada, the credit card interest rates on the majority of the cards are 19.99%. If you miss making two minimum payments in a year, this interest rate will shoot up again. So always make sure to pay off your credit cards minimum payment due at least if not the full amount.
Low-Interest Credit Cards offer lower interest rates on the amount you owe, once the grace period expires.
Now, in this article, I am comparing and reviewing 4 of the Low-Interest Credit Cards in Canada which offer descent to good benefits with low-interest rates compared to the rest of the market.
1. MBNA True Line Golden MasterCard
The MBNA True Line Gold MasterCard is one of the best low-interest credit cards that there is in Canada. For every purchase you make with the credit card, you get up to 8.99% interest rate which is less than half of the normal rate.
The annual fee for the maintenance of this card is as low as $39 per year which makes it very suitable for middle or low-income earners. When you purchase this card for the first time, you will get a 0% interest rate on all transfers that you make for the first six months. Then, the rate increases to 8.99%.
The MBNA True Line Gold MasterCard is a division of Toronto-Dominion Bank, and this credit card comes with a lot of insurances. These insurance include rental car theft, trip cancellation damages or accidents.
However, even if earning rewards for purchases is not the sole purpose of the card, I think that this should be an added feature whenever you get this card. There is a lot to love about this credit card and when selected your low-interest credit card, this should come to your mind.
Benefits & Features Of The MBNA True Line Golden MasterCard
1. Annual Fee – $39
2. Interest Rate On Regular Purchases – 8.99%
3. Interest Rate On Cash Advances – 24.99%
4. Interest Rate On Balance Transfers & Cheques – 8.99%
Eligibility Requirements To Apply
You should be a Canadian resident and are of the age of majority in your province/territory of residence
Quick Recap – MBNA True Line Golden MasterCard
1. This low-interest credit card has an 8.99% standard interest rate on eligible regular purchases
2. Annual Fee of $39
3. You could save on interest when you use our welcome offer to transfer a balance from a higher interest rate account
4. Welcome offer on the MBNA True Line Golden MasterCard – You’ll get a 0% promotional annual interest rate on balance transfers for the first 6 months, for transfers completed within 90 days of account opening. A 3% fee applies (minimum fee of $7.50 CAD). You can also add up to 9 authorized users with no additional annual fee for each added authorized user
2. MBNA True Line MasterCard
This is the light version of the credit card that was shown to us above. The best thing above this MasterCard is that is no annual fees and you can use it to purchase whatever you need to purchase at any time you need to. It is very handy and it comes with a 12.99% interest rate.
When you get this card for the first time, you will receive a 0% interest rate on all the transfers for the first 12 months.
The amazing feature of this card is that when it comes to fraudulent charges, this card protects you from it. It is very handy and it is definitely what you need in a low-interest credit card. If you want something higher, then you can switch to the gold MasterCard that we have shown you above. Anyone you choose is fine.
Benefits & Features Of The MBNA True Line MasterCard
1. Annual Fee – $0
2. Interest Rate On Regular Purchases – 12.99%
3. Interest Rate On Cash Advances – 24.99%
4. Interest Rate On Balance Transfers & Access Cheques – 12.99%
Eligibility Requirements To Apply
You should be a Canadian resident and are of the age of majority in your province/territory of residence
Quick Recap – MBNA True Line MasterCard
1. This low-interest credit card has a 12.99% Standard annual interest rate on regular day-to-day purchases
2. No Annual Fee
3. You could save on interest when you use our welcome offer to transfer a balance from a higher interest rate account
Welcome offer: You could save on interest with a 0% promotional annual interest rate on balance transfers for the first 12 months, for transfers completed within 90 days of account opening. A 3% fee applies (minimum fee of $7.50 CAD). This offer expires on February 29, 2020.
4. You can use available credit on your credit card to transfer funds right to your chequing account.
5. Also, you’ll be able to add up to 9 authorized users¤ with no additional annual fee for each added authorized user
3. American Express Essential Credit Card
This is another good card that you need when you are looking for good low-interest credit cards. This credit card has a lot of features that are widely talked about, especially in Canada. To get and maintain this card, no annual fee is required. Yes.
While using this card, you do not have to pay for annual fees like the credit card providers mentioned above.
It has an amazing bonus offer which allows customers to pay 1.99% for the first six months. After six months, the increase rate becomes 8.99% and after that, you will begin to receive an interest rate of 12.99%.
One amazing feature of the American-Express Essential Credit Card is that you can also use it for entertainment deals. For example, there are a lot of concerts with American Express Invites and with this card, getting into these concerts will be very easy for you.
Benefits & Features Of The American Express Essential Low-Interest Credit Cards
1. Annual fee – No annual fee
2. Annual Interest Rate On Regular Purchases – 12.99% on regular purchases and cash advances
3. Fees For Additional Cards – No annual fee
Key Benefits Of The American Express Essential Credit Card
1. Balance Transfer – You will Enjoy a 1.99% interest for the first 6 months if you choose to transfer your other credit card balances to this American Express credit card
2. Reserved Ticket Access – You’ll be eligible to receive FREE American Express Invites – which includes Front Of The Line opens the door to great music, theatre, dining, film, fashion and shopping experiences
3. Shopping Coverage – Whenever you shop, your card has a plan to ensure you’re covered.
4. Huge Savings On Interest Payments – With an 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.
4. Modulo Visa
This is the last one on this but it certainly isn’t the least.
The modulo visa is another awesome low-interest credit card suitable for you to manage your finances. This card has an annual fee of $50 which to some people, is quite on the high side but it is one of the best. this card has a 10.99% low-interest rate on all purchases and on this card, you will get 1% of all your purchases in Bonus Dollars.
These Bonus dollars can be gotten and used for gifts, etc. once of the most amazing features of this Modulo Visa card is that you can be given $1000 mobile insurance for all phones and tablets. So, if you spoil or lose your phone, this money will help cover all the damages.
Benefits & Features Of The Modulo Visa Credit Card
1. The Interest rate on regular purchases – 10.9%
2. The annual fee for the credit card – $50
3. Rewards Program – You’ll earn back 1% of your regular purchases made in “BONUS DOLLARS”
Benefits That You’ll Like The Most
1. A low-interest rate on regular purchases – You will definitely enjoy the low fixed annual interest rate on all your purchases and cash advances
2. Desjardins “BONUS DOLLARS” Rewards Program – Turn all your regular purchases into trips, gift rewards and more with the “BONUS DOLLARS” program
3. FREE Travel insurance – You will get FREE Travel Insurance For the first 3 days on all your trips
4. FREE Mobile Device Insurance – You can protect your cellphone, smartphone or tablet without having to purchases a separate mobile protection plan saving you ample money.
Conclusion
Now, that was the list of the 4 Best Canadian Low-Interest Credit Cards. I hope you liked the list.
Low-Interest Credit Cards are always an asset in the wallet. If you cannot make the full credit card balance and carry the balance forward, these interest rates can help you save a ton of money.
Every personal finance expert in Canada and else where will always recommend you not to carry over and accumulate your credit card debt. It gets really hard to pay it off at one point with the heavy interest rates and principal amount.
You need a low-interest credit card, don’t you? Do not worry. These four low-interest credit cards outlined above will give you all that you need to properly manage your finances and live well.
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