10 Best Credit Cards in Canada With Low Charge Rates
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10 Best Credit Cards in Canada With Low Charge Rates
Living in Canada is relatively expensive on major fronts. From housing, groceries, car insurance, taxes, transport, clothing, etc.
This can take a large chunk of your monthly income and leave you struggling financially before another paycheck comes in. If one doesn’t plan and budget properly, one can find himself in a depressive state.
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Access to credit is just one option available and has been a lifesaver for users who manage it well. With the rising cost of living, accessing credit may not be a bad idea.
There are several credit cards in Canada, each with decent credit features for different pocket sizes. Not all credit cards are the same.
Therefore we have researched 10 of the best credit cards in 2023 with low charge rates you should consider for your purchases and other expenses in Canada without stressing about added costs.
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Key Takeaways
🎯 In choosing a credit card with a low interest rate, some of the criteria you should factor into your choice include the balance transfer offer Annual Percentage Rate (APR), purchase APR, cash advance APR, welcome bonuses, and other rewards and features.
🎯 The actual interest you owe most times varies depending on the duration of the balance owed. You can check how your credit card interest is being calculated here.
SEE ALSO: 9 Best Loan Apps in Canada with low-interest Rates in 2023
SEE ALSO: How To Pay Off Debt on a Low Salary
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SEE ALSO: How To Make Money On Debt: 6 Smart Ways
10 Best Credit Cards in Canada With Low Charge Rates
1. MBNA True Line MasterCard
Top on my list of the best credit cards with low charge rates in Canada is the MBNA True Line MasterCard with zero annual fees, 0% interest rate on balance transfers, and 12.99% on purchases.
This MBNA MasterCard is one credit card you should invest in as it has no minimum household income, removing the barrier of high credit scores.
Aside from having a relatively low interest rate, its no annual fee policy makes it a good choice if you want to use a low-interest card without worrying about added costs.
Features
- The MBNA True Line MasterCard has a 24.99% cash advance interest rate
- As low as a 12.99% APR on purchases
- It has a balance transfer offer of 0% for 12 months
- No minimum household income
- No annual fee
Pros
- Competitively low APR
- It has no annual fee
Cons
- Offers zero welcome bonus
- Does not earn cash-back opportunities
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2. CIBC Dividend Visa Infinite Card
The CIBC Dividend Visa Infinite Card is also another MasterCard topping my list of best credit cards in Canada with low charges rates with a zero annual fee for up to a year.
It has numerous cash-back rewards, making it an excellent choice for those who want to enjoy the rewards of credit cards with a low charge rate.
Besides enjoying purchase protection, you also have unrestricted access to CIBC’s 24/7 customer service team.
Features
- The CIBC Dividend Visa Infinite Card includes travel accident insurance
- It has a minimum income requirement of $15,000 per household
- It has a low purchase and cash advance APR of 13.99%.13.99% cash advance APR
- Has optional emergency medical coverage
- It has optional credit card balance protection
Pros
- It has zero annual fees for a year
- Offers basic balance protection
- This MasterCard includes travel and emergency medical coverage
Cons
- Annual fee of $29
- It has high credit score requirements
- Zero cash-back opportunities
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3. BMO Cashback MasterCard
If you are looking for one of the credit cards in Canada popular for its simplicity and low charges, then the BMO Cashback MasterCard is the right card for you.
With cash back on all purchases, a zero annual fee for a year, and purchase protection, you have peace of mind and zero stress making purchases.
The MasterCard also comes with a Zero Dollar Liability, which protects you from unauthorized purchases made with the credit card.
Features
- The BMO Cashback MasterCard has a low purchase APR of 12.99%
- Has a balance transfer offer of a 0.99% introductory interest rate for nine months, with a 2% transfer fee
- Has an optional credit card balance protection
- Has a purchase protection
- MasterCard users enjoy an extended warranty
Pros
- The MasterCard has no income requirements
- You get to enjoy purchase and warranty protection
Cons
- The balance transfer fee adds up
- It has an annual fee of $20
4. Desjardins Cash Back World Elite MasterCard
The Desjardins Cash Back World Elite MasterCard is also one of the best credit cards in Canada that comes with a low charge rate and up to $5 million coverage on emergency medical services.
Using this Elite MasterCard, you enjoy reimbursement insurance on trip delays, rental cars, cell phones, etc.
It has one of the best cash-back rewards for a low-interest card which covers everything from your travel purchases, groceries, and restaurants to rideshare transportation.
Features
- This MasterCard has a minimum requirement of $150,000 personal income or $200,000 household income.
- You get a 4% cash back on all restaurant, entertainment, and rideshare transportation purchases in cash back.
- You get a 3% cash back on grocery and travel purchases
- All other purchases give you up to 1.75% cash back
- It Includes credit card balance protection
- Has $5 million in emergency medical coverage
- It has reimbursement insurance on baggage delay, trip delay, trip cancellation, luggage, etc.
- You also enjoy rental car insurance, cell phone insurance, return protection, and purchase protection.
Pros
- It has a low fixed APR, which also includes cash advances
- It has an excellent cashback opportunity e.g. for traveling, eating out, etc.
- Decent purchase and insurance coverage
Cons
- It has a very high annual fee of $295
- It offers no welcome bonus
- It has high-income requirements
5. HSBC +Rewards MasterCard
The HSBC +Rewards MasterCard is another MasterCard that combines rewards and affordability with a low interest rate.
The HSBC credit card is an excellent fit if you seek a balance between perks and charges.
It comes with a huge welcome bonus and covers all forms of trip cancellation, baggage delay luggage reimbursement, and emergency medical services.
At an APR of 11.90%, it has no income requirements, so you don’t have to worry about how much you earn annually to use the HSBC +Rewards MasterCard.
Features
- The HSBC +Rewards™ MasterCard has a cash advance and purchase APR of 11.90%
- You can get up to $200 in total value for the first year
- Has no income requirements
- If you reside in Quebec, you can earn up to 40,000 points when you keep your account active and in good standing for 180 days after account sign-up.
- Has a low-interest credit card with points
- Users enjoy extended warranty coverage and purchase protection
Pros
- It has an APR of 11.90% on purchases and balance transfers.
- Get 2 points per dollar on dining and entertainment purchases.
- Travel insurance coverage
Cons
- Moderately high credit score requirements
- It has a $25 annual fee
6. RBC Cash Back MasterCard
The RBC Cash Back MasterCard is one of the best credit cards you should get in Canada in 2023 if you are looking for a low-interest credit card with cashback rewards.
One of the perks of this MasterCard is that there is no annual fee, so you don’t have to worry about additional costs while using the card.
Key Features
- As a user, you enjoy optional credit card balance protection
- Covers emergency medical services
- Includes optional travel accident insurance
Pros
- This MasterCard has a low APR minimum
- It has zero annual fee
Cons
- Optional travel and balance protection
- It does not offer any welcome bonus
- You will need a high credit score to get this low-interest card
7. TD Emerald Flex Rate Visa* Card
With zero annual fees and no barrier to entry, The TD Emerald Flex Rate Visa Card is another credit card that stands out for its low and variable interest rate, which makes it one of the best in Canada in 2023.
Features
- You get to enjoy an emergency cash advance of up to $500.
- You enjoy Visa Zero Liability protection against unauthorized purchases.
- It has an optional TD Auto Club membership.
- You can earn 50% more Stars at selected Starbucks locations.
Pros
- It has a very low interest rate.
- It offers a generous credit score minimum
Cons
- It has no reward program
- It has few consumer protections or perks.
8. Scotia Momentum Visa Infinite Card:
The Scotia Momentum Visa Infinite Card is another card widely known for its low annual fees and generous Cashback rewards.
It offers a decent APR of 12.99% for cash advances and all other services you want to perform with the card.
Features
- It has a fixed rate of 12.99% APR which also applies to cash advances
- You enjoy a 0% interest rate on cash advances for the first six months after signing up
- It has optional credit card balance protection
Pros
- The MasterCard offers a 12.99% APR rate on cash advances, with six months at 0% APR.
- It has a fixed APR
Cons
- Has no cashback opportunities
- Few consumer protections
- It has an annual fee of $29
9. RBC Visa Classic Low Rate Option
The RBC Visa Classic Low Rate Option is a low-rate option for those who are always on the move (traveling to different places) and are interested in using credit cards for their purchases and not for anything else. The credit card offers zero welcome bonus and an annual fee of $20.
Features
- It has a minimum of 12.99% APR
- Has credit card balance protection
- The card covers emergency medical services
- Also, covers travel accident insurance
- Includes optional trip delay or trip cancellation insurance
- You also enjoy an extended warranty and purchase protection
Pros
- It has optional travel coverage
- It offers purchase protection and warranty coverage
Cons
- Somewhat high credit score range
- It has an annual fee of $20
- No welcome bonus
10. MBNA True Line Gold MasterCard
With the second-lowest credit score requirements, The MBNA True Line Gold MasterCard is another MasterCard with the second-lowest credit score requirement you should consider in 2023 if you have bad credit or short credit history.
Although it has zero welcome bonus and an annual fee of $39, it has a minimum of 14.49% APR which is pretty decent, and a credit score range that is quite forgiving.
Features
- This MasterCard has a median APR of 14.49%
- As a user, you enjoy purchase protection and an extended warranty
Pros
- Users enjoy extended warranty and purchase protection.
- It has a decent APR range.
- Forgiving credit score requirements.
Cons
- It offers zero welcome bonus.
- It has an annual fee of $39
Final Thoughts
Getting a credit card with a low charge rate is more than just about getting a MasterCard. It shows how intentional you are about your spending and earnings.
Each credit card we discussed offers distinct benefits, rewards, and rates to cater to various spending habits and financial goals.
Ensure you consider your spending patterns and repayment habits to choose the card that aligns best with your financial needs.
