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Barry Choi | Credit Cards,Blog

The Best Low-Interest Credit Cards Of 2018 In Canada

November 21, 2018

No one ever plans to go into credit card debt, but sometimes life happens. The thing is, once you start carrying a balance without a plan to pay it down, things can get out of hand quickly when you’re paying anywhere from 19.99% to 29.99% in interest.

Before you start to freak out, know that there are a few simple solutions to help you reduce your debt. Low-interest credit cards offer – you guessed it – a low-interest rate which will instantly help you reduce the amount of interest you pay every month. The key thing about these cards is to ensure that you’re paying off your debt as quickly as you can as opposed to just making the minimum payment. If you do carry some credit card debt, taking out a personal loan with a lower interest rate is another option to help you save money. 

Once your debt is clear, you’ll feel like a new person. So get things back on track now with one of the best low-interest credit cards in Canada.

The Best Low-Interest Credit Cards In Canada

American Express Essential Credit Card TM

best low-interest credit cards

  • No annual fee
  • 1.99% Introductory interest on balance transfers for the first 6 months
  • 8.99% Interest rate on purchases after promotional rate ends

With no annual fee, the American Express Essential Credit Card is a winner. When you apply for the card, you have the option to balance transfer at an interest rate of 1.99% for the first six months. This is great since most credit cards have an average interest rate of 19.99%.

If you choose to do a balance transfer, you can transfer 50% of your credit limit, up to a maximum of $7,500, whichever is less. There is no fee for balance transfers.

Once the promotional period ends, your interest rate goes up to 8.99%, but that’s still less than half what you would have paid with many other credit cards.

As an American Express Essential credit card cardholder, you’ll also get benefits such as access to American Express Invites, buyer’s assurance, purchase protection, and travel accident insurance. Check your credit score with Borrowell to see if you could qualify for this awesome card! 

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Scotiabank® Value Visa* Card

best low-interest credit cards

  • $29 annual fee
  • 0.99% Introductory interest on balance transfers for the first 6 months
  • 12.99% Interest rate on purchases after promotional rate ends

Although the Scotiabank Value Visa has an annual fee of $29, you do get an introductory interest rate of 0.99% on balance transfers for the first 6 months. This makes it one of the best low-interest credit cards on the market. This offer will likely appeal to people who know they can pay off a high balance during the promotional period. Once the six months are up, the interest rate goes up to 12.99%, which is still lower than most credit cards.  

The American Express Essential credit card offers lower overall rates, but some people may prefer the Scotiabank Value Visa since Visa is more widely accepted than American Express.

One additional perk of holding the Scotiabank Value Visa credit card is that you can save up to 25% off base rates at participating AVIS and Budget car rental locations in Canada and the U.S.        

MBNA True Line®Gold Mastercard®

best low-interest credit cards

  • $39 annual fee
  • 0.00% Introductory interest on balance transfers for the first 6 months
  • 8.99% Interest rate on purchases after promotional rate ends

The MBNA True Line Gold Mastercard has a 0% interest rate for the first 6 months on balance transfers made within 90 days of opening an account. This is the only Mastercard that offers a 0% interest rate! There is a balance transfer fee of 1% with a minimum fee of $7.50, but that’s still a great deal if you’re trying to reduce the balance on your credit card.

Once your promotional period ends, you’ll only pay 8.99% interest so you can continue to reduce debt without paying excessive amounts of interest charges.

Now that you know the best low-interest credit cards in Canada, it’s time to get out of any high-interest debt.

Check your free credit score through Borrowell and visit the “My Recommendations” tab on your credit dashboard to see all the financial products available to you.

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