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Best Low Interest Credit Card Canada
17 Aug 2019

Securing The Best Low Interest Credit Card Canada

Credit card balances can put your financial stability in jeopardy. Low interest credit card Canada is the ideal option in case you find it impossible to clear your balance in time.

Low interest credit cards Canada has made things easier and comfortable for you. If you are thinking of getting a credit card now or in the future, then think of one with low interest.  It is the only way you will get rid of debts that come about as a result of credit cards with high interest. You no longer have to get frustrated when you do not have enough funds to finance a new purchase. The cards do not accrue interest as swiftly as typical credit cards do and consequently, the balances grow more slowly. It is wise to avoid carrying balances on your credit cards but unavoidable circumstances may at times make it impossible to make payments in time. Furthermore, the low interest credit cards Canada comes in handy in cases of emergency yet your financial status at that particular moment is not looking so good.

Factors to consider when taking low interest credit card Canada

  • Introductory interest rate- It can either be a low rate of interest or none at all. Different low interest cards offer different introductory rates. Before choosing a card, it is best to ensure that it has the longest period before its introductory rate lasts. It is also important to check on the interest rate the card charges at the end of the introductory period.
  • The credit limit- This is the amount of money an issuer of low interest credit card Canada is willing to let you borrow. If you have a good credit history, an issuer can let you borrow up to tens of thousands of dollars. Low interest cards Canada make this possible and you will not pay hundreds of dollars in interest once you carry your balance to the next month.
  • Loyalty points- Many card issuers try many different means to induce you into using their cards. That includes offering reward programs without asking for an extra fee. Even so, it has to be rewards that you will use and that was easily earned. That way, you will also be benefitting from the card.
  • Spending habit- How you intend to use the card once you have acquired it matters a lot. If your spending will lead to carrying the balance from one month to the next, you might want to go for a card with the lowest possible interest rate. By so doing, the large balances that you might have will be a little more manageable to repay.
  • Fees and penalties- There are usually other charges that apply for the card. It might, therefore, be in your best interest to review the credit agreement before choosing the card. For example, it might not be a good idea to go over your credit limit since you are likely to be charged for that.

Examples of some of the best of low interest credit cards Canada

  1. American Express essential credit card- This is one of the low interest cards you should put into consideration. It has a fixed interest rate of 8.99% making it one of the credit cards in Canada with the lowest interest rate. Moreover, the rate is fixed and, therefore, there would be no surprise charges from the blues. The annual fee is zero, no minimum income requirement required, and you are guaranteed of purchase protection after purchase.
  2. Scotia bank value visa- The benefits of this card include an interest of 0.99% on balance transfers for the first six months. After six months, the rate increases to 12.99% for purchases and cash advances.  Furthermore, there is an annual fee of $29 which is low and affordable.
  3. MBNA True line MasterCard- The ideal option if you are in search of a balance transfer. Any balance transfer completed within 90 days of opening an account has 0% interest and 3% transfer fee for the first ten months. If you miss a payment or have a balance remaining once the promotional period ends, you pay a regular purchase interest rate of 12.99 percent. No annual fee is required and neither is the minimum income requirement needed.

Why choosing credit cards with low interests is a good idea

Choosing a credit card that has a low interest is one of the best decisions you can make. Below are some of the factors why this is.

Saves money– Once you decide to carry a balance to the next month, It is very important to know what you are getting yourself into in terms of the interest rate. Payments using the card for your purchases will increase if the interest rate is high and would be affordable if the interest is low. Using your low interest card to pay off other credit cards saves you a lot of money more so if the rate of the card you are paying off is not so high.

Low interest credit cards lower minimum payment- Lower interests means that your monthly payments would also be low. If what you owe in interest is little, what you owe for the overall credit card would also be little. That means that you will not be digging dip into your pocket during end month to pay off your credit card. You will be left with enough money to settle your bills without so much struggle.

Paying off debt is faster- Paying off your credit card debt in full always feels like a burden off your shoulder. Low interest cards make it faster and simple especially because you can use the credit cards to complete balance transfers. Transferring your balance from a high rate card means that your debt gets the lower interest rate. You will be able to settle your debt in full much faster and earlier. That is, however, only possible if you were to pay the same amount you were paying every month for the cards with the high rate.

It is not always a guarantee that you will be in a position to handle a financial emergency every time it presents itself. There is also that struggle of longing for a time you will be debt-free but the high interest cards you have make it impossible. Rather, you get closer and closer every day to a state of being declared bankrupt. It would not be fair to yourself or the people that depend on you if you were to spend almost all your earnings to pay off debt. You can apply for a low interest credit card Canada for any purchase you might require but do not have cash at hand or if you simply wish to carry your balance to the next month. Moreover, you are eligible to apply for the card even though you have bad credit or no credit score for that matter. The cards are hands down the best option if you are looking to save on a lot of money. The low interest rate of the cards, and an affordable annual fee or none at all is undeniably the best deal you can get.