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Best Low Interest Credit Cards Canada
27 Feb 2019

Best Low Interest Credit Cards Canada Offers

Low interest credit cards Canada, make it possible for you to spend less despite having carried your balance from one month to the next. Here is a peek into what they entail.

It is not always a guarantee that you will be able to pay back in time the amount you owe a financial company that issued a credit card to you. Unavoidable circumstances sometimes force you to carry your balance to the following month. This increases the interest that you would have to pay not to forget the original amount as well. If you are a Canadian, the low interest credit cards Canada offer helps save money. This sees to it that you do not end up using most if not all of your money in payment. It gives you peace of mind knowing that you do not have to cut down on your spending but rather maintain your lifestyle.

What low interest credit cards Canada entail?

Credit cards with low interest usually charge between 7 and 14 percent annual percentage rate. It should be noted that most credit card companies offer cards with a rate of between 16 and 19 percent. With this in mind, it would be in your best interest to go for a card with a lower interest rate as you will have spent a substantially less amount. Whenever looking for a credit card, therefore, never overlook the interest rate as it is the only way you can be able to know if you will afford the card or not. The less the interest the more convenient it would be for you when pay. A card having a low interest, however, should not be your reason to delayed your payment. The more you delay the higher the interest gets and at the end of it all repaying becomes an issue.

A peek at some of the best credit cards with low interest

Credit cards come in different types other than interest rate differentiation, it might be challenging to choose one that perfectly suits your needs. Below are some of the major credit cards offered around Canada and whose interest rates are affordable:

  • American Express Essential credit card- This is a transparent and clean card offering a fixed interest rate of 8.99%. With this credit card, you do not have to worry about changing interest rates. The rate applies to cash advances and new purchases. The best part is that the card has no annual fee.
  • Scotia Bank Value Visa – If you intend to be a cardholder of value visa expect to pay a low annual fee of $29 and a competitive interest rate of 12.99 %. The low rate is accompanied by promotions that are as well low. The card offers you a chance to save a substantial amount of money in a year as compared to many other cards available.
  • Low Rate Guaranteed Master Card from Capital One -Interest for purchase and balance transfers is as low as 14.9% and that for cash advances is 19.8%. An annual fee of $79 is part of agreement terms. All applicants for this card are approved.
  • The Desjardins Modula Visa- The credit cards offers a low-interest rate of 10.9% for both cash advances and credit card purchases. If you are a Cardholder, you get the privilege of having free mobile device insurance for the protection of your phone just in case it gets damaged or stolen. You can also earn the Desjardins Bonus dollars at a rate of 1%. You are therefore at liberty to enjoy lower credit card bills or give yourself a flight treat.

Advantages of low-interest credit cards

  • They are cost effective.
  • These credit cards offer long term low rate and rewards.
  • Some of the credit cards do not charge any handling fees.

Make the best decision of your life by choosing low-interest credit cards Canada, this will ensure that you do not experience financial constraints in the future. Get in touch with us as we answer all your questions in regards to credit cards.

Disadvantages of Low Interest Credit Cards Canada

Like anything in life, choosing low interest credit cards Canada has its downsides. These small issues are not usually enough of a problem to detract from the appeal of these cards, but there is no sense in going in blind when more information is available. Here are some of the potential negative parts of using this kind of card.

  • You probably won’t be able to get any rewards, or if you do, you’ll have to settle for very small amounts of them.
  • You may have to keep track of variable rates (those that are determined by a set percentage added to an institution’s Prime rate) over time.
  • You may be tempted to take on more debt than you can handle because it feels like such a bargain.
  • You might underestimate the costs of the interest on these cards and procrastinate on paying your balance because of it.
  • You may have to pay an annual fee to get one (usually it’s not much, though).

These issues are small and most are based on your own internal attitudes toward using your card – in other words, if you stay in the right mindset, most of these potential problems go away.

High Credit Card Debt Isn’t Just An Inconvenience – It’s a Hardship

Many Canadians are living with extremely high credit card debt, so the interest that’s being compounded into their payments can take up a big chunk of their monthly budget. Since very few people have significantly more money than they could ever want to spend, this tends to force people to live a lifestyle that they probably would not choose if they had the financial means to do otherwise. Cutting out small luxuries in life can make debt more manageable, but it takes away a lot of the joy of living.

The trouble doesn’t stop there, either. Unless they significantly exceed the minimum required payments on a regular basis, their debt will continue to grow over time. If things get bad enough, they could end up owing as much as double what their initial balance was, or even more. The cycle of credit card debt is vicious and it rarely slows down, so it’s up to you to take measures to get yourself out of it while you still can.

How Low Interest Credit Cards Canada Can Change Your Life

Switching to a low interest card can completely revolutionize your budget. Moving your debt over to the card with the lower rate via a balance transfer will allow you to shave off a good chunk of what you’re paying monthly. What’s more, many low interest cards offer interest as low as 0% on balance transfers for a few months after you get them, allowing you to scrape up even more savings. If you have anywhere near the average level of Canadian credit card debt, this could add up to hundreds of dollars a month in saved money for you.

Once that money is staying with you and not being paid out to your credit card provider, there’s no limit to the things you can do with it. One of the wisest courses of action would be to set it aside and add the amount that you would have been forced to pay into your credit card payment anyway. Doing this will help you pay down more of the principle and help you get out of debt faster. If you were experiencing significant financial hardship before, you might be better off using that money to expand your monthly budget and allow you to live more comfortably and relax a little. All of this is up to you, but you no longer have an obligation to do a particular thing with the money – you can spend it however you see fit, and that gives you your control back.

We Want To Help You Pay Less For Your Credit

Finding low interest credit cards Canada doesn’t have to be a challenge. Bonsai Finance is here to help Canadians like you out of situations just like this. With our assistance, you can give just about every low interest card out there a quick look before you make your final decision, allowing you to ensure you’ve made the right choice. When you realize how much of what you’ve been paying toward your balance each month was just interest, you’ll wonder why you didn’t make this move much sooner.