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TD Emerald Visa To Carry Balance
22 Sep 2019

The TD Emerald Visa Makes It Safer To Carry a Balance

Credit card interest rates are typically quite high, and the longer you carry a balance on one, the more those fees will add up. The TD Emerald Visa can be extremely helpful in mitigating some of the expenses that this behavior generates. This low interest card offers a unique variable rate that lets holders with good credit score some of the best rates available on Canadian credit cards.

Why You Might Want a Low Interest Credit Card

Low interest credit cards are another type of card available for people who want an alternative to the ubiquitous reward cards out on the market. They forgo the idea of rewards completely in order to focus on providing a different kind of value to their customers; they offer lower interest rates on any balances you might be carrying.

For some people, this kind of card is pointless because of how they typically use credit. If you’re paying off everything you charge to your card immediately before it can accrue any interest in the first place, you obviously won’t care about getting a discount on those fees you aren’t paying. However, many people are not in that same position and carry hundreds or even thousands of dollars in debt on their cards. When you owe so much, your interest fees add up fast. Anything you can do to lower them is a good idea at that point, and that’s when you might start to consider using these products.

What Makes the TD Emerald Visa Special

The TD Emerald Visa is a low interest card like the ones described above, but instead of offering one low flat rate, it actually offers a range of potential rates that different applicants might be offered depending on how good their credit score is. The higher your score, the lower the rate you will be expected to pay. The lowest rate TD could give you is TD Prime + 4.50% interest on all three types of balances (standard purchases, balance transfers and cash advances), while the highest is TD Prime + 12.75%. TD Prime is currently hovering around 4%, so you’d be paying about 8.50% on the low and 16.75% on the high one.

There is no published set of guidelines regarding what level of credit score is needed to secure the better rates, and indeed, even having what is considered a good score does not guarantee you a good rate. To find out what rate you’re eligible for exactly, you’ll need to apply for this card with TD and see what they are willing to give you. It’s important to find out what rate they think your credit profile deserves if you’re at all interested in signing for this card, because unfortunately it isn’t free. It will cost you a $25 annual fee regardless of the specifics of you offer. It comes with no reward program and no benefits beyond a very small discount on your car rental fees, so you’ll need to make sure you’re getting enough value out of the interest discount alone to justify paying that fee.

Good Credit Is a Must

Since one of the main selling points of this card is the variable interest rate it carries, you must have put together that there’s no telling what rate you will ultimately end up with. While the low end of this card’s rates is nothing short of excellent, the higher end is far less impressive. In fact, it barely offers any savings at all compared to the standard interest rate you would get on most cards. At that point, you need to be paying interest on vast sums of money – far more than the average Canadian is carrying at any given point in time – to be achieving any real savings by choosing this card over a standard one. You’ll almost certainly be paying more on the annual fee than you save, a scenario that no one likes to see happening. By going with this card, you’d also be losing out on the potential for rewards, which makes it an even worse deal. Overall, being stuck on the high end of the interest rate spectrum really runs this credit card offering. If you’re going to be stuck at these rates, it’s just generally not worth your while to bother getting this card at all.

On the other hand, if you’re lucky enough to have excellent credit and have TD recognize this enviable trait about you, the rate you could be offered could be low enough to beat out any other credit card offer in Canada. That’s right – there is literally nothing better available than the low end of this interest fee spectrum. With enough debts to pay down, you could save hundreds of dollars a year with this card, which obviously makes it more than worth the fees. This is why the variance in the interest rate is so tricky to deal with; it completely changes the yield and value of the card. Unfortunately, people with significant credit card debt also tend not to have stellar credit scores, so the potential of this card is not often lived up to.

Is It Worth It to Apply for the TD Emerald Visa?

Deciding on using the TD Emerald Visa is a simple matter of mathematics. If you’re going to save more than $25 a year in interest by choosing it, you may as well do so. The inconvenient part of this is that unless this holds true for you at even the highest possible rates, you will have to apply for this card before you can know this for sure. It luckily won’t take very long to get this done, though, so at least you’ll be able to find out what rate you qualify for (if any at all) relatively quickly. If you’re curious, you might as well apply; you might be one of the lucky ones that gets the better rates on offer here.