Low Interest Canada Personal Credit Cards

If you are currently in the market for a Canada credit card, the information provided in this article will make the process easier and less stressful.  Although it is exciting that so many different credit cards are available in Canada, with the vast number trying to choose just one can be a little overwhelming.  However, the advantage to consumers is that with the internet, they can compare as many Canada credit cards wanted and at leisure.

Considering that Canada credit cards have different rewards and points systems, interest rates, fees, penalties, introductory periods, balance transfer capabilities, and so on, it is no wonder that so many people cringe when it comes to finding the best personal credit card.  One of the most important things about looking for a personal Canada credit card is the interest rate.  For this, it is not only regular interest charged for purchases, but also interest charged during the introductory period, interest for balance transfers, etc.

For instance, when looking for a personal Canada credit card that has balance transfer options, interest would need to be understood on several levels.  Most credit card companies and banks that issue cards will provide an introductory period during which time no interest or extremely low interest is charged.  The length of this period varies dramatically although on average it lasts 12 months.  During this time, it is common for interest to be at 0%.  However, once the introductory period ends, the Annual Percentage Rate would increase to a prime or subprime rate.

One of the important things to understand for this feature of a personal Canada credit card is whether the 0% or low interest rate is on just the balance transfer feature or regular purchases too.  Unfortunately, many people will secure a balance transfer credit card believing the 0% being advertised during the introductory period is for everything.  However, after transferring the balance over from a high interest rate card to the new card, and then using the new card for purchases, the statement comes only to shock the cardholder.

Yes, this person was provided 0% interest on the money transferred over from the other credit card.  However, the individual had no clue that interest being charged for purchases was at 24%.  Therefore, when the statement came, the person realized that a mess had been created.  For this reason, anyone looking for a personal Canada credit card, especially one that would be used for both balance transfers and purchases needs to know if two different interest rates would be applied, or just one.

It would also be important for a person with less than perfect credit who was looking for a personal Canada credit card to know if the interest rate would ever decrease.  Typically, someone with bad credit would automatically be charged higher interest but as that person’s credit improves and card payments are made on time, the high rate would start to decline.  However, this would not be something to assume.  Instead, the individual should talk to a representative of the issuing company to make sure.