Low Interest Canada Credit Cards

The great thing about Canada credit cards now being offered is that you have so many incredible choices.  In fact, credit card companies and banks have developed so many unique card types that finding one that matches your specific type of spending or needs is easy.  Even so, no matter the type of credit card you need, with the important aspect being a card with low interest.

As you begin your search for Canada credit cards, you will notice that the majority now offer an introductory period.  During this time the interest rate is low, and often 0%.  The cards that offer this type of deal most include MasterCard, Visa, and American Express.  As far as the length of the introductory period, this ranges anywhere from three months to 15 months but the goal is to choose one at least 12 months.

The primary issuers for this type of Canada credit card include BMO, TD, MBNA, CIBC, and Scotia.  However, the most important consideration with a card such as this is what the interest rate changes to once the introductory period ends.  Sure, having a card with a 0% interest rate for 12 months would be perfect for new purchases but more importantly, balance transfers but if the rate were to increase to 25% or more, it may not be as good as a deal as it first appears to be.  Therefore, you want a card with a minimum 12-month introductory period, low, or 0% interest during that time, and then one with a regular Annual Percentage Rate of 19% or lower.

When considering Canada credit cards with low interest, you also need to pay attention if the rate is fixed or variable, which could be listed by those names or the letters “F” or “V”, respectively.  In the case of a variable interest rate, it means that rate would change according to market fluctuations.  In other words, if the market were to increase dramatically, the interest rate would also increase dramatically.  On the other hand, a Canada credit card with a fixed interest rate means the rate would be low, and it would never change.  Now, when the market dictates low rates, this type of Canada credit card is not as appealing in that the rate may be higher than cards with variable rates but if the market were to change, the card would be a great deal because of the non-changing rate.

You should also consider that depending on your current credit score, you would be approved for a low or high interest rate Canada credit card.  With bad credit, credit card companies and banks are going to offer you subprime rates, which means the interest would be higher than for someone with good credit.  However, if you have good credit, then you would be approved for a larger number of Canada credit cards but also be offered prime interest rates.  Therefore, the rate you would ultimately get on the card would be low.  For this reason, it is important to maintain good credit or if you have bad credit, repair it prior to applying for a Canada credit card.