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Choosing low interest credit cards Canada
13 Jan 2019

Choosing Low Interest Credit Cards Canada

When applying for credit cards, you are probably looking for the most appropriate depending on your financial needs. Low interest credit cards Canada could be one of your options.

Interest rates are one of the key factors one looks into when applying for credit cards. Credit cards with interest rates lower than the average are known as low interest credit cards Canada. However, these cards mostly favour people with good credit history. Canadians with impressive credit scores are therefore more likely to qualify for these cards. Credit cards have three types of interest; these are cash advancement, the purchase and the balance transfer rates.  The cash advancement rate refers to the rates charged when you withdraw cash from the credit card. The purchase rates are the rates on the credit card purchases, while the cash transfer rates refer to the charges made when you transfer debt from one card to another.  The importance of knowing these rates will depend on your needs as well as your spending habits.

How to choose the best low interest credit cards in Canada.

When it comes to comparing low interest credit cards in Canada, the key determinants as pointed above are the usage of the credit card as well as the reason for applying for the card. Apart from the low interest, the other key factors to consider include the rewarding programs that come with the card as well as annual percentage rates. Other than the introductory rate, you should also consider the ongoing rate. This is because some cards may have attractive initial rates but may pull you to a burden of high ongoing rates.

Who should apply for low-interest credit cards?

  • People with good credit history. It is important to note that the card issuers also consider some other factors.
  • The cards can be a good choice for people who want to carry a balance.
  • People with a good habit of paying debts in time may also benefit maximally from these cards.
  • People with a good repayment plan that does not involve incurring new debts.

Benefits of low interest credit cards Canada.

The following are some of the advantages you can enjoy with these cards:

  • Low interest rate credit cards Canada are an important tool to help you save money. By paying a low interest, you can save a lot of money in the long run. This is advantageous because you can use the savings to pay off principal balance thus reducing your debts.
  • These credit cards also offer an easy way to pay off your debts. This is because they can be used for balance transfers. For example, you can opt to transfer debt on your current high interest credit card to such a credit card as a balance transfer. The balance transfer card may offer as low as 0% interest rate on transferring the debt for the six initial months. This reduces the repayment rate for you thus making it easier for you to achieve financial freedom.
  • Low interest credit cards in Canada can also be an alternative way of improving your credit score. When you pay off your credit card debts in good time, you are able to maintain and enhance your credit history.
  • These cards could also be very useful during the holidays.  This is because they can offer shopping and entertainment gifts. They may also have additional rewards during the holidays.

At Bonsai finance, we can work closely with you to find the best low interest credit cards in Canada for your financial situation. Our experts will connect you to the best card issuers and assist you throughout the entire process. Low interest credit cards Canada can, therefore, be a very good choice for you. They come with many advantages and easier way to solve your financial problems.