Low interest credit card in Canada: the cheapest rates, and which work at Costco (2026)

A low interest credit card is worth more than any rewards card if you carry a balance. On $2,000 carried for a year, the CIBC Costco Mastercard's 21.75% costs about $435, while the MBNA True Line Mastercard at 12.99% costs about $260, has no annual fee, and works at Costco.

Which low interest credit cards charge the least?

From each issuer's page, checked October 27, 2026 (the CIBC Costco Mastercard from CIBC's rates summary, checked October 4). Costs are a Sample data estimate: the balance times the purchase rate for a year, plus the fee.

CIBC's Select Visa also targets balance carriers ($29 a year, first year rebated, $15,000 household income), but its page didn't show a purchase rate when we checked, so it isn't in the table. BMO's Preferred Rate Mastercard isn't either: BMO's site wasn't answering when we checked.

Which low-rate cards can you use at Costco?

The two MBNA True Line cards, because they're Mastercards. Costco warehouses and gas stations in Canada take Mastercard as their only credit card, so the TD Low Rate Visa and Scotiabank Value Visa work only on Costco.ca. If you carry a balance and shop at Costco, a True Line card in the warehouse costs less in interest than the Costco card, even though it earns no rewards. Paying in full anyway? Then the rate doesn't matter, and the best no annual fee cards earn rewards for free.

Is the True Line Gold worth its $39 fee?

Only on a bigger balance. The Gold charges 10.99% against 12.99% on the $0 True Line, so the 2-point difference covers the $39 fee once your average balance is about $1,950. Below that, the free card costs less. Neither card earns rewards, and both charge 24.99% on cash advances.

What's the cheapest way to finance a big Costco purchase?

For a planned purchase like a TV, appliance or mattress, CIBC's Pace It plans on eligible Costco purchases made with the CIBC Costco Mastercard charge 5.99% for 6 months, 6.99% for 12 months or 7.99% for 24 months, with no installment fee. That's lower than any card here. Rates and how to set one up are in our CIBC Costco Mastercard interest guide. Once it's bought, an independent local helper can deliver it or mount the TV; you agree the price with them.

Does a balance transfer help?

If you already have a balance at 20% or more, yes. Moving $2,000 to the MBNA True Line costs a 3% fee ($60) for 0% over 12 months, if you transfer within 90 days of opening the account; the Scotiabank Value Visa charges 1% ($20) for 0% over 9 months, and CIBC's Select Visa 1% for up to 10 months, on up to half your limit. After the offer, the regular transfer rate applies (17.99% on True Line), so plan to pay it off within the window.

Should you pick a low interest card or cash back?

If you pay in full every month, the rate never applies, so take the rewards: the CIBC Costco Mastercard earned $336 a year on our sample budget. If you carry a balance, the rate matters more: a $2,000 balance at 21.75% costs about $435 a year, more than the $336 that card earned on our $2,000 a month sample budget. Clear the balance on a low-rate card first, then switch back to rewards. Once the balance is cleared, the best cash back cards and how the Costco card's cash back works show what you'd earn back.