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Low-Interest Credit Cards for Debt Consolidation in Canada

Having more than one credit card and paying very high interest on each of them is stressful, not to mention that all the monthly payments only go towards paying the interest rather than the principal. Among the major financial tactics that Canadians use to enhance their financial situations are debt consolidation and utilizing low-interest credit cards which offers an effective solution. These cards often have lower interest rates than standard credit cards, which makes them the right method for consolidating debt and minimizing the total cost of credit.

This article is about how low-interest credit cards are useful for debt consolidation and the best options for Canadians who want to reduce high-interest charges.

 

MBNA True Line® Mastercard

The MBNA True Line® Mastercard is perfect for Canadians who want to use their card to consolidate their debts and not get charged an annual fee. This card has the best balance transfer rates since it provides a 0% promotional interest rate for transfers in the initial year, making it useful for paying huge interest rate balances. It has no income restrictions and the recommended credit score is 660 and above, which means almost everyone can apply.

 

Features and Benefits

• Welcome Bonus: Achieve 0% interest for 12 months on purchases transferred within 90 days of account opening at a 3% balance transfer fee. This can be advantageous to you in terms of interest as you take time to clear all your debts.
• Annual Fee: This card offers customers a $0 annual fee, hence convenient for anyone who wishes to do the debt consolidation without being charged extra fees.
• Ongoing Interest Rates: After the promotion period ends, the normal purchase interest rate is 12.99% for every month, while the balance transfer rate is 17.99%.

The MBNA True Line Mastercard is an excellent choice for anyone who wants to handle existing credit card balances without accruing added interest charges.

CIBC Select Visa Card*: Interest-Free Debt Consolidation

The CIBC Select Visa Card* is one of the best credit cards in Canada for those who are looking for better interest rates for their revolving balances and sorting out the debt consolidation issue. This card has zero percent interest on balance transfers for the initial 10 months and a two-year annual fee waiver, which means it is effective in handling initial high interest balances. Intended for people, who have a minimum of $15,000, and it might be considered a realistic choice for those who need to decrease their expenses without receiving excess charges.

Features and Benefits

• Welcome Bonus: Get a free 0% interest on your first 10 months of transferred balances with a 1% balance transfer fee. It enables you to combine several loans into one account and make your payments without paying additional interest in the course of the offer period.
• Annual Fee: $29, but upon the first two years, the amount will be rebated thus making this card an option for consolidation of debts.
• Ongoing Interest Rates: The card has a low ongoing purchase, balance transfers, and cash advance rate of 13.99% even after the promotional period ends.

CIBC Select Visa Card* is recommendable for Canadians seeking an affordable method to decrease their debt balance while benefiting from reasonable interest rates and simple, accessible features.

RBC® Visa Classic Low Rate Option

The RBC® Visa Classic Low Rate Option provides a mitigation option for Canadians who need to reduce the interest they are paying on their credit card debts while keeping costs low. It has no annual fee for the first year and a $20 annual fee thereafter and keeps the interest rate at a steady 12.99% on purchases, cash advances, and balance transfers to alleviate the worry of accruing high interest costs on several debts. Due to the relative lack of complexity and easy navigation, it can help any person or family, regardless of income level, to meet their financial commitments.

Features and Benefits

• Low Annual Fee: For as little as a $20 yearly membership fee, you acquire one of the cheapest low-interest debit cards in Canada that is aimed at cutting down on expenses incurred on debts.
• 12.99% Interest Rate: Discover competitive offers of a 12.99% interest rate on purchases, cash advances, and balance transfers to keep more of your money paying off your debt.
• No Income Requirements: The RBC Visa Classic Low Rate Option can be obtained by anyone who wishes with no minimum income requirement.

This card is ideal for anyone looking for a low-fee method of debt consolidation without so many terms and conditions being put in place.

BMO® Preferred Rate MasterCard®

The BMO® Preferred Rate MasterCard® is a good low-interest credit card for Canadians who are seeking an affordable way to consolidate their debt. This card, for instance, has an introductory interest rate of 0.99% for the first 9 months for balance transfers, thus providing an excellent opportunity to consolidate your expensive debt at a lower cost. A relatively low annual fee of $29 waived on the first year means that this card is suitable for those who want to manage their monthly payments affordably and reduce debt.

Features and Benefits

• Welcome Bonus: Take advantage of the 0.99% interest rate on balance transfers for 9 months with the 2% transfer fee that will allow you to pay down your debt balance without worrying too much about interest.

• Annual Fee: Enjoy a $29 annual fee waiver for your first anniversary, offering more savings for those who wish to consolidate their debts.
• Ongoing Rates: Once the promotion period is over, enjoy 13.99% on purchases and 15.99% on balance transfers and cash advances.

This BMO Preferred Rate MasterCard has certain flexibility with regard to their requirements and the low interest structure makes it a suitable choice.

Should You Get a Credit Card with a Low Interest Rate?

It is advisable to use a low-interest credit card for debt consolidation especially if you are dealing with multiple balances that have high interest rates. The following cards are useful to lower interest charges, streamline your interest payments and consolidate your debt enabling you to paying it off more quickly.

Make sure to read rate, fees and promotional offers of the card before you apply for it so that you can be in a position to manage your debt repayment properly.

Final Thoughts

Transferring your debt to a credit card with a lower interest rate can save you a lot of money on the interest which makes it easier to pay off the debts. By choosing a proper credit card and planning your payments properly you can take control of your debt and achieve a debt free life.