The Best Low Interest Credit Cards of 2019

The Best Gas Rewards Credit Cards of 2019

If you’re prone to carrying a monthly balance on your credit card, it may be time to rethink your choice in plastic and take control of your finances.

According to Statistics Canada, the average debt-to-disposable income percentage recently went to 178.5 per cent (up from 178.3 per cent in the previous quarter). That means for every dollar of disposable income a Canadian household has, they owe $1.79 in credit market debt.

A lot of debt can be resolved simply by choosing the right credit card suited for your lifestyle. Sure, sign-up bonuses, travel rewards and cash-back are great, but if you struggle to pay your balance every month, then you should really opt for a low interest credit card to avoid accumulating more debt.

For example, let’s say that you tend to carry a balance of $1,000 month-to-month. Switching from a rewards card that offers you a rate of 19.99% to a low interest card that offers you a rate of 9.99% can save you $100 per year in interest.

A good low-interest card offers a competitive rate that gives you the opportunity to save on interest and ultimately helps you reduce debt. And though there are many low interest credit cards on the market, there are a few options that will save you the most. To make the decision-making process easier, RateSupermarket.ca has a handy-dandy card comparison tool.

We also used our Best of Finance methodology here to rank the cards that provided the most savings. So without further ado, here are the top three credit cards with a low interest rate.

2019 Best of Finance Best Credit Card For Carrying a Balance Category Winner


 

National Bank Syncro Mastercard®

 Why it’s an awesome card

Instead of offering a low fixed interest rate, the National Bank Syncro Mastercard® features a variable rate (dependent on the prime rate + 4%), which also translates to competitive rates on balance transfers and cash advances. The card has a $35 annual fee, and though the variable rate is everchanging, it will likely turn out to be significantly lower than that of most fixed-rate credit cards. This will help you to pay down balances faster, and thus, this card won the Best Card for Carrying a Balance award this year at our Best of Finance Awards.

Interest rate

  • Variable (prime rate + 4%)

Annual fee

  • $35

Interest saved*

  • After two years: $296.98

American Express Essential™ Credit Card

Why it’s an awesome card

With no annual fee, nothing can get in the way of your journey to being debt-free. The American Express Essential™ Credit Card has a low-interest rate of 8.99%, catered to help you pay off debt faster.

And because it is an American Express card, it comes with the added benefits of special offers on concert and theatre tickets, dining experiences and more.

It should be noted, though, while this card can realistically save you more on interest than most credit cards on the market, it is not as widely accepted as Mastercard products, which leads us to place this card at #3 on our list.

Interest rate

  • 99%

Annual fee

  • $0

Interest saved*

  • After two years: $364.32

#2: MBNA True Line® Gold Mastercard®

Why it’s an awesome card

The MBNA True Line® Gold Mastercard® is one of the best credit cards for managing large amounts of debt.

Cardholders pay an annual fee of $39, but your purchase and balance transfer interest rate is lower than your typical credit card – 8.99 per cent for balance transfers and purchases when the introduction interest rate of zero per cent ends after the first six months of cardmembership. This card does have a no-fee counterpart, but since this one has a lower interest rate, it made our top cards for carrying a balance list. Besides, the amount you’ll be saving in interest will cover the annual fee in no time.

Interest rate

  • 99%

Annual fee

  • $39

Interest saved*

  • After two years: $286.32

 

 


 

Notes: 

*To calculate the value of low balance transfer credit cards, we assumed the following:

  • The cardholder is starting with the average Canadian credit card balance of $2,640, and pays a monthly installment of $220 in order to pay the balance within a 12-month period
  • The cardholder has transferred the balance from another card to activate the promotion balance transfer interest rate, and has paid a 1% fee of $26.40.
  • The interest paid on the balance over the 12-month period is compared to that of the average credit card with a 19.99% APR
  • Total card value takes into account all signup bonuses, good standing bonuses, first-purchase bonuses, annual fees and waivers.

Related Topics

Credit Cards / RSM News

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