What Are the Best Low Interest Credit Cards in Canada?

When considering credit cards in Canada, one of the most important factors to consider is the interest rate. Low interest credit cards can save you a lot of money in the long run, especially if you tend to carry a balance from month to month. In this article, we'll take a look at some of the best low interest credit cards in Canada, as well as some tips for choosing and using a credit card wisely.

Best Low Interest Credit Cards in Canada

1. MBNA True Line Mastercard: With an interest rate of just 12.99%, the MBNA True Line Mastercard is one of the best low interest credit cards in Canada. It also offers a balance transfer promotion of 0% interest for the first 10 months, making it a great option for those looking to consolidate their debts.

2. Tangerine Money-Back Credit Card: This card offers an interest rate of 19.95%, which is still relatively low compared to many other credit cards. Additionally, it offers cash back rewards on your purchases, making it a great option for those who want to earn rewards while still keeping their interest rates low.

3. BMO Preferred Rate Mastercard: With an interest rate of 12.99%, the BMO Preferred Rate Mastercard is another great option for those looking for a low interest credit card. It also offers a balance transfer promotion of 3.99% interest for the first 9 months.

Tips for Choosing and Using a Credit Card Wisely

1. Consider your spending habits: Before choosing a credit card, think about how you plan to use it. If you tend to carry a balance, a low interest credit card may be your best bet. If you pay your balance in full each month, you may want to consider a rewards credit card instead.

2. Read the fine print: Make sure you understand the interest rate, fees, and other terms of your credit card before applying. Some cards may have hidden fees or restrictions that could cost you money in the long run.

3. Use your credit card responsibly: To avoid high interest charges and other fees, make sure to pay your balance on time and in full each month. Only use your credit card for purchases that you can afford to pay off within your budget.

Other Tips for Saving Money with Credit Cards

1. Look for cards with no annual fees: Many credit cards charge an annual fee, which can add up over time. Look for cards that don't charge an annual fee to save money.

2. Take advantage of rewards programs: If you choose a rewards credit card, make sure to use your rewards wisely. Look for opportunities to earn bonus points or cash back, and use your rewards for purchases that you would make anyway.

3. Be aware of the risks: Credit cards can be a useful financial tool, but they can also be risky if not used responsibly. Make sure to monitor your spending and keep track of your balances to avoid overextending yourself financially.

Overall, low interest credit cards can be a great option for those looking to save money on interest charges. By choosing a card with a low interest rate and using it responsibly, you can enjoy the benefits of credit without breaking the bank.