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How To Reduce Bad Credit With No Fee And Low-Interest Credit Cards

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    There is a solution if your present credit card has an interest rate of more than 15% or if you need to repair a low credit score. After all, every year, millions of Canadians escape the credit card trap.

    Banks frequently employ deceptive tactics to keep you repaying debt at high rates of interest, but there’s no reason you can’t switch cards for a better offer, particularly if your total is more than $1,000.

    Are You Overpaying Credit Card Debts?

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    If you’re merely making minimum payments, you’re definitely taking on a considerable financial burden because interest rates can be as high as 19%. It becomes even worse when late payment penalties and fees are added.

    For instance, if you make a $240 monthly payment toward a $6,000 balance at a 15% interest rate, it will take you 129 months to pay off your debt!

    Additionally, your final cost will be over $2,600 only in interest! And that’s assuming that you never skip a payment or accrue fines. If you are unable to make payments due to unemployment or other obligations, this debt may also snowball.

    Take Control of Your Credit Card Debt

    A credit card debt with a high-interest rate can easily spiral out of control, as you are undoubtedly already aware. Banks may either advise you to bargain for a lower interest rate, which frequently results in nothing, or offer you consolidation loans, which can be quite dangerous and fail to address the core cause.

    Lowering or eliminating interest rates while you pay down your credit card balance is the best method to combat credit card debt.

    How To Lower or Eliminate Interest Rates on Credit Cards

    The simplest way to achieve this is to move your debt to a new credit card that has a 0% interest rate. With a new line of credit, your credit utilization will decrease, and the lower it is, the better your credit score will be.

    The ability to pay off your credit card more quickly because of a lower interest rate is another benefit of this strategy. This further reduces credit consumption.

    You must, however, establish a clear strategy and timeline for when you want to pay off your debt. But aside from that, a 0% credit card offers you a second chance to get out of debt quickly and easily.

    Here Are The Best Low-Interest and No-Fee Credit Cards

    We’ve chosen four of the finest no-fee and low-interest credit cards below, but it’s always best to conduct more research because other cards may better suit your financial circumstances.

    1) BMO Air Miles MasterCard

    • APR 19.99%
    • No annual fee
    • $15k minimum required income

    2) American Express Essential Credit Card

    • APR 8.99%
    • No annual fee
    • $15k minimum required income

    3) No Fee Scotia Bank Value Visa Card

    • APR 16.99%
    • No annual fee
    • No minimum required income

    4) MBNA Trueline MasterCard

    • APR 12.99%
    • No annual fee
    • No minimum required income