2025's Best Low Interest Credit Cards for Canadians
Carrying a monthly balance? Find the lowest interest rate credit cards and make your balance more manageable.
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What are low interest credit cards?
If you tend to carry a credit card balance from month to month, having a low interest credit card will help you save money on interest charges. The standard credit card interest rate is 19.99 to 20.99%, a high-interest rate for a recurring credit card balance. Having a high-interest credit card means you're paying a lot of extra money on interest, money you could save if you switched to a low annual interest rate credit card. As their name indicates, low-interest credit cards come with much lower interest rates, sometimes as low as 4.99%.
Best of Finance Winner for 2025: Best Low Interest Credit Card
The best way to avoid paying costly interest charges is to pay off your credit card balance in full at the end of each statement period.
However, that is not always possible, and there might be times when you carry a balance. If this does happen, interest will start to accrue on the unpaid balance at a set annual rate that compounds daily.
Most credit cards charge a standard annual interest rate of around 19.99% on purchases, which can add up quickly.
Although some credit cards' welcome offers and perks can be enticing, mounting interest charges caused by carrying a balance will outweigh any advantages. Switching to a low-interest credit card may allow cardholders to tackle their debt faster and pay less interest. This decision can put cardholders in a healthier financial position in the future.
We compared low-interest credit cards in Canada using our Best of Finance methodology and ranked the cards that provided the most potential savings. The average savings have been calculated against a monthly spending of $2,000 using a standard interest rate credit.
Click the card name from the table below to learn more.
| First year savings | Annual fee | Interest rate (purchases) | |
|---|---|---|---|
| $200 | $399 | 9.99% | |
Runner up | $120 | $20 | 12.99% |
Runner up | $120 | $39 | 10.99% |
Winner: Scotiabank Platinum American Express® Card
The Scotiabank Platinum American Express® Card is a valuable tool for anyone who makes most of their purchases on credit, wants to avoid the fees normally charged by credit card companies, but still wants to collect fun perks.
First, here’s why it works as a low-fee card. A very low interest rate of 9.99% applies to purchases, cash advances and balance transfers. Plus, the Scotiabank Platinum American Express® Card doesn't charge foreign exchange fees, making it a good choice for frequent travellers (it also comes with a suite of travel perks and insurance).
Now, the fun stuff. Most low-interest cards won’t let you earn rewards as you spend money on them. But with the Scotiabank Platinum Amex, you earn valuable Scotia Scene+ Points, which you can use on movie tickets, meals out, arcade games at the Rec Room, retail purchases, statement credits and even travel. You get twice the points when you make purchases at places that partner with the Scotia Scene+ program. On top of the savings you’ll see in interest, we estimate you can get up to $881 in rewards value in your first year.
Annual fee
$399
Interest rates
- Purchases - 9.99%
- Cash advances - 9.99%
- Balance transfer - 9.99%
Benefits
- Ten complimentary visits to participating airport lounges per year
- No foreign transaction fees
- Apply Scene+ Points to travel purchases
- American Express Invites
- Concierge services
Runners-up: Best Low Interest Credit Card
MBNA True Line® Gold Mastercard®
For an annual fee of $39, the True Line® Gold Mastercard® offers cardholders an 10.99% annual interest rate on balance transfers and purchases, allowing you to quickly pay down any outstanding credit card balances. This card also includes complimentary shopping insurance.
Annual fee
$39
Interest rates
- Purchases - 10.99%
- Cash advances - 24.99%
- Balance transfer - 13.99%
Benefits
- Access your account anytime, anywhere, with the MBNA Mobile App.
- Convenient, secure and easy to use Apple Pay with your MBNA credit card
- 24/7 fraud protection
- Save with Avis Rent-A-Car and Budget Rent-A-Car
Insurance coverage
- Extended warranty - 1 year
- Purchase protection - 90 days
RBC® Visa‡ Classic Low Rate Option
The RBC® Visa‡ Classic Low Rate Option is a good choice for anyone looking to prioritize low interest rate charges on balances. An annual rate of 12.99% applies to purchases and cash advances.
Even though you're probably more focused on saving money, the RBC Visa Classic Low Rate Option does offer some useful perks.
For example, enjoy free delivery for three months from DoorDash when you sign up for the app with the card.
You'll also be eligible to save three cents per litre on fuel and always earn 20% more Petro-Points at Petro-Canada.
Annual fee
$20
Interest rates
- Purchases - 12.99%
- Cash advances - 12.99%
Benefits
- Purchase security and extended warranty insurance
- Save and earn faster with RBC Offers
- Instant fuel savings at Petro-Canada
- Get 50 Be Well points for every $1 spent on eligible products at Rexall
- $0 delivery fees for three months from DoorDash
How will a low interest credit card help me save money?
With a low interest credit card, you can pay off your credit card balance faster. This is because more of your monthly payment is being put towards your balance instead of the interest.
Standard credit cards come with an interest rate ranging from 19.99%-22.99%, while low interest cards can be as low as 4.99% to 15.99%.
Let’s see an example of how much interest you can save by switching to a low interest credit card.
Let’s say:
- You owe a $1500 balance on your credit card
- Every month, you choose to pay $150 towards your credit card statement
Example of how a low interest credit card can help you save money
| Typical credit card | Low interest credit card | |
|---|---|---|
| Annual interest rate | 19.99% | 8.99% |
| Monthly interest rate | 1.67% | 0.74% |
| Months until your balance is paid in full | 12 | 11 |
| Total interest paid | $154.49 | $65.13 |
| Typical credit card | Low interest credit card | |
|---|---|---|
| Annual interest rate | 19.99% | 8.99% |
| Monthly interest rate | 1.67% | 0.74% |
| Months until your balance is paid in full | 12 | 11 |
| Total interest paid | $154.49 | $65.13 |
Low-interest credit card FAQs
Is a low interest credit card right for you? Here’s what you need to know
What are the most common features of low interest credit cards?
Most low interest credit cards come with a no annual fee, and typically no rewards. This is because they are specifically designed to make it easier for you to pay your recurring credit balance. Most low interest credit cards do not offer perks though because the low interest rate itself is considered the perk.
When is the best time to use a low interest credit card?
The best time to use a low interest credit card is when you have a high recurring credit balance to pay off. While comparing low interest credit cards, look for a great promotional interest rate to take advantage of.
What is the difference between fixed rate and variable rate credit cards?
When you’re comparing low interest credit cards, you’ll notice that there are two types, fixed rate credit cards and variable rate credit cards.
A fixed rate low interest credit card has the same interest rate throughout the year, while the variable rate low interest credit card has a fluctuating interest rate. This variation depends on two important factors, one being the bank’s current prime rate and the second being your credit score. If you have a low credit score (below 600), you may not be able to take advantage of some of the interest rate discounts that come with the variable rate, low interest credit card.
- Fixed rate credit cards - The benefit of fixed rate credit cards is that you’ll know what interest rate you’ll be charged every billing cycle. The rate of interest won’t be affected by the bank’s prime rate or your creditworthiness. Fixed rate credit cards usually come with limited-time balance transfer promotions you can use pay off your existing credit card debt.
- Variable rate credit cards - The advantage of holding a variable rate credit card is that you can get a very low rate (even lower than a fixed rate card in some cases), but this usually only comes with excellent credit. The disadvantage is that you might be stuck with a higher rate if your credit score isn’t great or if the bank’s prime rate increases.
If you have a credit score lower than 670, stick to a fixed rate, low interest credit card.
RATESDOTCA may receive compensation when you click on links to those products or services. However, our content and calculations are objective and free from bias. The opinions expressed are purely those of RATESDOTCA; thus, partners are not responsible for any editorials or reviews that may appear. For current terms and conditions on any advertiser or partner’s product, please visit their website.
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