Low-Interest Credit Cards Canada 2025: Compare Lowest Rates

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MoneySense is an award-winning personal finance magazine that has helped Canadians make informed money decisions since 1999. Our editorial team of trained journalists works with leading finance experts and evaluates card features from banks, credit unions and card issuers to help you compare products that matter. We publish independent analysis; affiliate relationships do not influence our editorial rankings. Read the issuer disclosures or our advertising disclosure for more details.

Pros

• Very low purchase APR compared with typical consumer cards.
• Includes limited travel insurance and mobile device protection for new purchases.
• Flexible payment options for larger purchases.

Cons

• Travel insurance is limited to short trips; extended travel may require separate coverage.

Pros

• Low annual fee and no minimum income requirement stated, making it accessible.
• No fee for additional authorized users.
• Cardholders can access RBC Offers and earn Petro-Points for fuel savings.

Cons

• No ongoing balance transfer promotion in many cases, so transferring high-interest debt may not always be possible.

Pros

• Complimentary airport lounge visits via Priority Pass and generous travel benefits.
• Very low purchase and cash advance APR for a premium rewards card, useful if you occasionally carry a balance.
• No foreign transaction fees, which saves on purchases in other currencies.

Cons

• High annual fee compared with cards that have lower features or no fee.
• American Express may have more limited acceptance in some locations compared with Visa or Mastercard.

Pros

• Promotional 0% balance transfer rate for up to 12 months provides time to reduce debt interest-free.
• Allows adding multiple authorized users at no extra cost.

Cons

• Limited insurance and travel perks compared with other MBNA offerings.
• Purchase APR is higher than some other low-rate competitors.

Why choose a lower interest rate credit card?

Lower interest-rate cards save money when you carry a balance. Rewards and cash-back cards can be valuable if you always pay in full, but if you carry debt the interest charges can quickly exceed reward value. Choosing a low APR reduces daily interest accrual and helps you pay down principal faster.

What is a variable credit card rate?

A variable rate can change with market conditions, often tied to the lender’s prime rate plus a fixed percentage. Consumers with excellent credit can sometimes secure lower variable rates, but the rate can rise if underlying benchmarks increase. Fixed-rate cards keep a steady advertised APR regardless of prime fluctuations.

How much difference do lower interest rates make?

Even a few percentage points lower on your APR can save meaningful money. For example, a $1,000 balance at 9% costs substantially less in daily interest than the same balance at 19%. Lower APRs mean more of your monthly payment goes toward reducing the principal balance rather than interest.

How can I stop purchase interest charges from getting out of control?

Switching to a low-interest card or a card with a promotional balance transfer can reduce interest charges. Combine that with a repayment plan—automatic payments, the avalanche or snowball method—and prioritize paying down high-rate balances first to limit interest costs over time.