We love credit cards here at creditcardGenius, but we don't love credit card interest. One of our major rules with credit cards is to pay your bill in full, every month.
That said, if you do happen to rack up a balance, all is not lost. A 0% APR credit card can help you quickly tackle that debt because your payments are going directly to principal – and you’re not accruing interest in the meantime.
Since the 0% APR is usually for a limited time, these are considered balance transfer cards that you use as a tool to pay off debt. We’ll explore the best option, the MBNA True Line Mastercard, along with a few other picks.
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Best credit cards with 0% APR
Before we get into it, remember that 0% APR cards are essentially balance transfer cards – and when we say your options for finding a 0% card are limited, we mean it. There are only a few cards that offer this.
| Credit card | Balance transfer promotion | Regular interest rate | Annual fee | Apply |
|---|---|---|---|---|
| MBNA True Line Mastercard | 0% for 12 months | 12.99% | $0 | Apply |
| Scotiabank Value Visa Card | 0.99% for 9 months | 13.99% | $29 | Apply |
| CIBC Select Visa Card | 0% for 10 months | 13.99% | $29 | Apply |
MBNA True Line Mastercard
×2 Award winner 
$135 GeniusCash + 0% on balance transfers for 12 months (3% fee) + No annual fee.*
GC: $135
2x Award winner The
Why we like it:
- No annual fee
- 0% interest for 12 months (transfer fee of 3%)
- Low permanent interest rate of 12.99% on new purchases
Things to consider:
- 24.99% interest on cash advances
- No rewards on purchases
- Limited insurance coverage
- Not available to residents of Quebec
Scotiabank Value Visa Card
Why we like it:
- 0.99% interest for 9 months (transfer fee of 1%)
- 13.99% regular interest rate on purchases, cash advances, and balance transfers
Things to consider:
- $29 (waived for the first year)
- No rewards on purchases
- Limited insurance included
CIBC Select Visa Card
Why we like it:
- 0% interest for 10 months (transfer fee of 1%)
- Save up to 10 cents per litre on fuel at Journie Rewards gas stations
Things to consider:
- Annual fee of $29
- No rewards on purchases
- Minimal insurance included
Learn more: Best balance transfer credit cards
What is credit card APR?
APR stands for annual percentage rate. In Canada, we usually just call it credit card interest, which is what the credit card issuer charges you on your credit card balance if you don’t pay it in full each month. You’ll typically see APR or interest listed as a percentage rate.
Here’s what to know about it.
1. APR is usually calculated daily
While APR is calculated daily, if you read the fine print on your card, you’ll see a grace period for purchases – often 21 days after your statement is issued. You won't pay any interest on purchases if you pay your balance in full by your due date.
Note that grace periods only apply to new purchases. Interest starts to accrue immediately for cash advances and balance transfers, and you'll see it on your monthly statement.
2. Credit card interest is charged monthly
When you check your statement, you’ll see exactly how much credit card interest you’re paying for the month. Even though it shows as a monthly interest charge, remember that it’s calculated daily from the time the payment was initially made (not when the statement was first due).
3. 0% APR credit cards are also balance transfer credit cards
In Canada, 0% APR credit cards are balance transfer cards. While they don’t all offer 0% interest rates, you can find some other low offers on balance transfers.
Remember that these promotional interest rates are temporary; once the period is over, your interest rate will increase to the rate set out in your cardholder agreement.
4. Typical credit card interest rates are higher than other types of loans
Credit debt is bad for your finances largely because of the high interest rates you pay. Most credit cards have a typical interest rate of 20%. If you get behind on payments (or only pay the minimum), your debt can snowball – and the high interest rates only make it worse.
While a 0% APR can help during the promotional period, it’s worth noting that personal loans often have lower permanent interest rates.
5. There are some rules about balance transfers
First, be aware that you can't transfer a balance to another credit card from the same bank. That also applies to issuers owned by other banks – like MBNA (owned by TD), Tangerine (owned by Scotiabank), and Simplii (owned by CIBC).
You shouldn’t use the card for new purchases. Balance transfer cards are intended to help you pay off debt while saving on interest. New purchases are charged at the standard interest rate – and they’ll cause you to start racking up interest on those purchases.
Finally, it’s important that you don't miss a single payment. If you do, your interest rate could shoot up to at least the card's standard rate, and your balance transfer rate is gone.
How credit card APR is calculated
The easiest way to calculate how much you’ll pay (or save) in credit card interest is by using a calculator.
Enter your current interest rate (for both sliders), the size of your balance, and how much you'll pay per month. We'll tell you roughly how long it will take to pay off your credit card debt – and how much interest you'll have paid when it's all said and done.
If you want to transfer your balance to another credit card to help save on interest, change the second slider to the interest rate of your new card. We'll update the info to show you how much interest you could save.
Credit Card Interest Calculator
Remember: If your interest rate is a promotional offer (a card that has a balance transfer promo), the interest saved is only applicable if you can pay it off within the promotional time frame (usually 3 to 12 months).
FAQ
What’s the lowest credit card interest rate in Canada?
The lowest rate you can get is 0% with the MBNA True Line Mastercard, but there are other low interest credit cards that are well below the average 20% interest rate charged by most cards.
Is it hard to get a 0% APR credit card?
To qualify for a card like the MBNA True Line Mastercard, you typically need a credit score of at least 660. Some cards also have income requirements, so you’ll need to check those before applying.
Do you need a good credit score to get a 0% APR card?
You’ll usually need a credit score of at least 660 to get a 0% APR credit card. If you don’t qualify, you might still be eligible for another low interest credit card.
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