Best low interest credit card in Canada for 2020 award seal

If you’re the forgetful type who tends to run late on payments, or if you’re carrying a balance on your credit card right now…

Saving on your monthly interest charges is worth checking into.

Because with the right card, you could save hundreds (or even thousands depending on your credit card balance) per year.

They’re rare, but some low interest credit cards can offer interest rates under 9% for people with top-notch credit...That’s 11% less than the typical credit card these days.

What’s that in real dollars? Well if you carry a balance of $8,000 for a full year, that’s $880 in interest savings. Every. Single. Year.

These savings could help you pay down your credit card balance much faster ‒ and should give you extra breathing room every month.

You can learn more about how credit card interest works here.

Best low interest credit cards for 2020

At a glance – here are some great low interest credit cards that could help you enjoy some major savings:

CategoryCredit CardCurrent Promotion
Best low interest credit cardDesjardins Visa ModuloNone
Best credit card with low, permanent ratesMBNA True Line® Gold Mastercard®0% interest for 6 months on balance transfers (terms)
Best introductory balance transfer offerMBNA True Line® Mastercard®0% interest for 10 months on balance transfers (terms)
Best variable rate low interest cardNational Bank Syncro MastercardNone

Review all top 10 low interest credit cards here.

Best low interest credit card

For an overall good low interest card, the offers a mix of rewards and low interest rates.

What are those rates? You'll get 10.90% interest on purchases, cash advances, and balance transfers made to the card.

On top of these rates, you'll earn 1% back in Desjardins BONUSDOLLARS, and get some good insurance coverages on trips of less than 3 days.

It's for an annual fee of $50.

Best credit card with low, permanent rates

This offer is not available to residents of Quebec. For residents of Quebec, please go here.

For even lower permanent interest rates, the is the card for you.

Let's start with balance transfers. This card has a promotional offer of 0% interest for 6 months on transfers made to the card in the first 90 days. After that, it still has a low rate of 8.99%.

For new purchases made to the card, they also have a low rate of 8.99% (just keep in mind the cash advance rate is still a high 24.99%).

It also comes with 7 types of purchase and travel insurance, just in case you need it.

All these low rates and coverages come with an annual fee of $39.

Best introductory balance transfer offer

This offer is not available to residents of Quebec. For residents of Quebec, please go here.

Have a large balance on an existing credit card? You'll want to get to know the .

Why? It has the best balance transfer offer in Canada – 0% interest for 10 months.

That's right – almost a whole year not paying interest on your existing credit card debt.

Once the promotional rate ends, you'll still see a low rate of 12.99% on any outstanding balance (as well as any new purchases).

If you have existing credit card debt, it will really help get your finances in order.

Best variable rate low interest card

Want the lowest possible rate you can get? The is the card for you.

The interest rate on purchases is 8.90% – the lowest in Canada right now. And you'll enjoy a low rate of 12.9% on balance transfers and cash advances.

One thing to note about this card? It's a variable rate card. The rates for this card vary with the prime rate.

Here's how the rates are calculated:

  • for purchases, prime + 4%, with a minimum rate of 8.9%, and
  • for cash advances and balance transfers, prime + 8%, with a minimum rate of 12.9%.

The current prime rate is 3.95%, meaning the minimum rates are in effect. In fact, the prime rate would have to increase 1% before the minimum rate is overtaken, meaning it's likely to have the lowest interest rates for the foreseeable future.

Compare Low Interest Credit Cards

How credit card interest works

Credit card interest is expressed as an annual number, with interest calculated daily on outstanding balances. For purchases, you have a grace period after your statement is released before interest starts accruing – usually 21 days, but varies by issuer. However, miss that deadline and the interest is calculated from the date of the purchase.

For cash advances and balance transfers, interest starts accruing right away.

And interest is calculated daily, though the rates you see are expressed as annual rates. To determine what you'll pay, take the rate, and divide by 365 (or 366 if it's a leap year).

Multiply that number by the number of days the balance has been outstanding and you'll see how much interest you'll have to pay.

To learn more about how credit card interest works, this article has everything you need to know.

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