0% Credit Cards in Canada: A Comprehensive Guide
Are you tired of paying high interest rates on your credit card debt? If you're a Canadian resident, you're in luck! Several credit card providers in Canada offer 0% interest rate promotions on new purchases, balance transfers, or both. In this article, we'll delve into the world of 0% credit cards in Canada, highlighting their benefits, features, and the best options currently available.
What are 0% Credit Cards?
A 0% credit card is a type of credit card that offers a promotional interest rate of 0% for a specific period, typically ranging from 6 to 24 months. During this promotional period, you won't be charged interest on your outstanding balance, allowing you to save money and pay off your debt more efficiently.
Types of 0% Credit Cards in Canada
There are two primary types of 0% credit cards in Canada:
Balance Transfer Credit Cards
These credit cards offer 0% interest rates on balance transfers for a promotional period. This means you can transfer your existing credit card debt to the new card and enjoy 0% interest rates for a while. Balance transfer credit cards are ideal for those who want to consolidate their debt and pay off the principal amount.
Purchase Credit Cards
These credit cards offer 0% interest rates on new purchases for a promotional period. This means you can make new purchases without incurring interest charges for a while. Purchase credit cards are suitable for those who want to make a large purchase or carry a balance for a short period.
Benefits of 0% Credit Cards in Canada
Here are some benefits of 0% credit cards in Canada:
- Save money on interest: By not paying interest, you can save a significant amount of money and allocate it towards paying off the principal amount.
- Pay off debt faster: 0% interest rates allow you to focus on paying off the principal amount, helping you become debt-free faster.
- Consolidate debt: Balance transfer credit cards enable you to consolidate your debt from multiple credit cards into one card with a 0% interest rate.
Best 0% Credit Cards in Canada (2023)
Here are some of the best 0% credit cards in Canada:
Scotiabank Value Visa Card
- 0% interest rate on balance transfers for 6 months
- 1% balance transfer fee
- $29 annual fee
RBC Platinum Avion Visa Card
- 0% interest rate on balance transfers for 13 months
- 1% balance transfer fee
- $139 annual fee
Capital One Guaranteed Mastercard
- 0% interest rate on purchases for 12 months
- $79 annual fee
TD Cash Back Visa Infinite Card
- 0% interest rate on balance transfers for 6 months
- 1% balance transfer fee
- $139 annual fee
Conclusion
0% credit cards in Canada can be a valuable tool for managing debt and saving money on interest. By choosing the right credit card that aligns with your needs, you can take advantage of promotional interest rates and become debt-free faster. Remember to always read the fine print, understand the terms and conditions, and make timely payments to avoid interest charges.
