Best Low Interest Credit Cards Canada
Introductory 0% rates and welcome offers are time-limited promotions. Fees, rates and terms are set by each issuer and can change; the issuer’s own card page has the current version. Welcome offers change often: see how welcome offers work.
| Card | Purchase Rate | Cash Advance | Annual Fee | Intro Offer |
|---|---|---|---|---|
| MBNA True Line Gold Mastercard | 10.99% | 24.99% | $39/year | None |
| RBC RateAdvantage Visa | Prime + 4.99-8.99%* | Prime + 4.99-8.99%* | $0 | None |
| TD Low Rate Visa | 12.90% | 12.90% | $25/year (waived year 1) | 0% on purchases for 6 months |
| MBNA True Line Mastercard | 12.99% | 24.99% | $0 | 0% on balance transfers for 12 months (3% fee) |
| CIBC Select Visa | 13.99% | 13.99% | $29/year (rebated for the first 2 years per current offer) | 0% on balance transfers for up to 10 months (1% fee) |
| BMO Preferred Rate Mastercard | 13.99% | 15.99% | $29/year (waived year 1) | 0% on balance transfers for 18 months (2% fee) |
| Scotiabank Value Visa | 13.99% | 13.99% | $29/year ($0 first year) | 0% on balance transfers for 9 months (1% fee) |
*RBC RateAdvantage’s rate is a variable formula (Prime Rate + 4.99% to Prime Rate + 8.99%) set by your credit profile, not a flat rate – it moves with the Bank of Canada-driven prime rate, so quote the formula rather than a fixed number; at the prime rate in effect as of September 2026 (4.45%) this works out to roughly 9.44%-13.44%.
Interest Savings Comparison
How much you save vs a standard 19.99% card, using the MBNA True Line Gold Mastercard’s 10.99% rate as the low-rate benchmark: It’s part of our credit card roundups, next to the balance transfer roundup.
| Balance Carried | Standard (19.99%) | Low-Rate (10.99%) | Annual Savings |
|---|---|---|---|
| $2,000 | $400/year | $220/year | $180 |
| $5,000 | $1,000/year | $550/year | $450 |
| $10,000 | $2,000/year | $1,099/year | $901 |
| $15,000 | $3,000/year | $1,649/year | $1,351 |
Bottom line: Even a $5,000 balance saves $450+/year, which comfortably exceeds the $39 annual fee.
Top Picks
Lowest Rate: MBNA True Line Gold Mastercard
| Feature | Details |
|---|---|
| Purchase rate | 10.99% |
| Cash advance rate | 24.99% |
| Balance transfer rate | 13.99% |
| Annual fee | $39 |
| Rewards | None |
| Intro offer | None (the no-fee True Line has the balance transfer promo instead) |
Best for: Anyone carrying a purchase balance who wants the lowest guaranteed flat rate and doesn’t mind a small annual fee.
Best No Annual Fee: RBC RateAdvantage Visa
| Feature | Details |
|---|---|
| Purchase rate | Prime + 4.99% to Prime + 8.99% (variable, credit-based; ≈9.44%-13.44% at the current prime rate) |
| Cash advance rate | Prime + 4.99% to Prime + 8.99% (variable, credit-based; ≈9.44%-13.44% at the current prime rate) |
| Annual fee | $0 |
| Rewards | None |
| Credit score needed | Very Good |
Best for: Those with strong credit who want low interest without any annual fee. If you’d rather have a predictable flat rate instead of a variable range, the no-fee MBNA True Line Mastercard (12.99% purchase rate) is the alternative.
Best Overall: CIBC Select Visa
| Feature | Details |
|---|---|
| Purchase rate | 13.99% |
| Cash advance rate | 13.99% |
| Balance transfer rate | 13.99% |
| Annual fee | $29 (rebated for the primary cardholder for the first 2 years) |
| Intro offer | 0% on balance transfers for up to 10 months (1% fee, capped at 50% of your credit limit) |
Best for: A simple, single flat rate across purchases, cash advances, and balance transfers, plus a genuine multi-year fee rebate.
Best Intro Offer: BMO Preferred Rate Mastercard
| Feature | Details |
|---|---|
| Intro rate | 0% on balance transfers for 18 months (longest promo period among these cards) |
| Regular rate | 13.99% purchases / 15.99% cash advance and balance transfer |
| Annual fee | $29 ($0 waived for year 1) |
| Balance transfer fee | 2% |
Best for: Consolidating debt with the longest available 0% introductory period.
Low Interest vs Balance Transfer Cards
| Feature | Low Interest Card | Balance Transfer Card |
|---|---|---|
| Ongoing rate | 10.44-13.99% | 19.99-22.99% after promo |
| Intro rate | Usually none | 0% for 9-18 months |
| Best for | Always carrying a balance | Paying off debt within promo |
| Annual fee | $0-39 | $0-120 |
| After promo | Already at low rate | Jumps to standard rate |
Strategy: Use a 0% balance transfer card to pay off debt within the promo period. If you can’t, switch to a low-rate card.
Who Should Get a Low Interest Card?
Good Fit ✅
- You occasionally carry a balance month-to-month
- You have a large purchase you need to pay off over time
- You want a safety net for unexpected expenses
- Your current card charges 19.99% or higher
Not the Best Fit ❌
- You always pay in full each month (get a rewards card instead)
- You have less than $1,000 in spending per month
- You only need the card for emergencies
Low Interest Credit Card Math
Break-Even vs Rewards Card
When does giving up rewards make sense?
| Scenario | Rewards Card (1.5% CB, 19.99%) | Low-Rate Card (0% CB, 10.99%) |
|---|---|---|
| $3,000 balance, pay $500/mo | $540 rewards, $165 interest | $0 rewards, $90 interest |
| Net value | +$375 | -$90 cost |
| $3,000 balance, pay $200/mo | $540 rewards, $518 interest | $0 rewards, $285 interest |
| Net value | +$22 | -$285 cost |
Rule of thumb: If you carry more than $2,000 for longer than 3 months, a low-rate card saves more than rewards earn.
How to Use a Low Interest Card Effectively
- Make more than minimum payments: Low rate doesn’t mean free; pay down the balance
- Set a payoff timeline: Calculate how long to eliminate the balance
- Don’t increase spending: A lower rate isn’t a reason to spend more
- Watch for rate changes: Some variable rates can increase with Bank of Canada hikes
- Consider pairing cards: Low-rate for carried balances, rewards card for paid-in-full spending
Common Mistakes
| Mistake | Solution |
|---|---|
| Using low-rate card for all purchases | Use a rewards card for purchases you pay in full |
| Ignoring the annual fee | Calculate net savings: interest saved minus annual fee |
| Missing payments | Late payments can void your low rate (check terms) |
| Taking cash advances at higher rate | Cash advance rates are usually higher, even on low-rate cards |
| Not comparing to a line of credit | A personal LOC at 6-8% may be cheaper for large, ongoing balances |
Low Interest vs Line of Credit
| Feature | Low Interest Card | Line of Credit |
|---|---|---|
| Typical rate | 10.44-13.99% | 6-10% (variable) |
| Grace period | 21 days | None (interest from day 1) |
| Credit impact | Credit card utilization | Installment debt |
| Flexibility | Revolving | Revolving |
| Application | Easy | Requires good credit |
Related Resources
Sources
The figures and rules on this page come from these sources. How we check facts.
- americanexpress.com: The Platinum Card® | Amex CA
- americanexpress.com: Cash Back Credit Cards | Amex Canada
- americanexpress.com: American Express® No Annual Fee Credit Cards | Amex CA
- americanexpress.com: American Express® Business Gold Rewards Card | Amex CA
- americanexpress.com: Business Platinum Card® From American Express | Amex CA
- BMO: Terms & Conditions
- BMO: BMO CashBack Mastercard: Up to 3% Cash Back – BMO Canada
- CIBC: Credit Card Rewards Calculator | CIBC
- CIBC: CIBC Aeroplan® Visa Infinite Card - CERTIFICATES OF INSURANCE
- neofinancial.com: Paid
- neofinancial.com: Neo Mastercard | Apply Online in Minutes | Neo Financial™
- pcfinancial.ca: PC Insiders™ World Elite® Mastercard® | PC Financial
- pcfinancial.ca: PC® Mastercard®: Earn up to 4.5% back in PC® Optimum™ Points | PC Financial
- RBC: RBC Avion Visa Infinite - Premium Travel Credit Card | RBC Royal Bank of Canada
- RBC: WestJet RBC World Elite Mastercard Travel Credit Card | RBC Royal Bank of Canada
- RBC: RBC ION Visa - No Monthly Fee Rewards Credit Card | RBC Royal Bank of Canada
- rogersbank.com: Rogers red worldelite mastercard
- Scotiabank: Scotia Momentum® Visa Infinite +* Card | Scotiabank Canada
- Scotiabank: Passport® Visa Infinite +* Card
- simplii.com: Simplii Financial Cash Back Visa Card | Simplii Financial
- Tangerine: Cash Back Credit Card: Bonus 10% Cash Back for 2 months* | Tangerine
- TD: AEROPLAN TERMS AND CONDITIONS FOR TD CREDIT CARDS
- TD: TD Aeroplan Visa Infinite Credit Card | TD Canada Trust
- TD: TD Cash Back Visa Infinite* Card | TD Canada Trust
- TD: TD Aeroplan Visa Platinum Credit Card | TD Canada Trust
- TD: TD First Class Travel Visa Infinite* Card | TD Canada Trust
- TD: TD Rewards Visa* Credit Card | TD Canada Trust
- TD: Apply for a TD Cash Back Visa* Card | TD Canada Trust
- TD: Apply for a TD Platinum Travel Visa* Card | TD Canada Trust