Low Interest Credit Cards for Canada

These days, it seems like credit card companies just can't stop battling each other for new customers by offering competitive rates on credit cards and balance transfer offers. You may have even received an offer for a low interest credit card in the mail recently. Low interest credit cards offer extremely low rates of interest on balance transfers from other credit card or new purchases over an introductory period. Some providers of low interest credit cards will even go so far as to charge you 0% interest for an introductory period of one year.

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When the introductory period is over, most providers will bump the interest rate back up to a higher one in the hopes that the customer will stick with the credit card and continue making purchases at the adjusted higher rate. Because of this, many people will immediately disregard low interest credit cards as nothing more than a marketing trick credit card companies use to lure in new customers. But that isn't always the case. The fact is, transferring your credit card balance from one card to another card with a low interest introductory period can result in some very attractive interest savings. The same can be said about financing purchases with low introductory purchase rates. But you have to be wise about it and you must not let the credit card company outsmart you. Here are some suggestions on how you can make the most out of a low interest credit card:

Read the fine print. Credit card companies will always highlight the pros of their products and shove the cons into the fine print. Therefore, it is extremely important that you read what is in the fine print before you sign up for a low interest credit cards. What is the introductory rate and how long does it last for? By how much does the rate increase after the introductory period is over? Is there an extra charge for transferring the balance? Are new purchases charged at a different rate than the transferred balance? If new purchases are charged at a higher rate, then it might be better not to use that card to buy new things.

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Do the Calculation. To make sure that you are making a wise decision by transferring your balance into a low interest credit card, you need to do a little calculating. For example, a four-month rate of 1.95% with a balance transfer fee of 3% is actually equal to 10.95% (1.95% + (3 * 3%)). In this case, you will only want to transfer balances from cards that are charging you a rate that exceeds 10.95%.

Avoid late payments. Making a late payment on a low interest credit card will usually result in your low interest rate being bumped up to the higher rate before the introductory period ends. This negates that whole point of using a one. Not only that, making a late payment will also adversely affect your credit history. So, if you can, avoid making late payments at all times.

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Low interest credit cards for Canada
Canadian Low interest credit cards.