Line of Credit vs Credit Card: Which Costs Less in Canada?
Compare the interest on a Canadian line of credit and a credit card, using current bank rates, and see when moving a balance saves money.
Most Canadian credit cards charge around 20% interest or more on balances you carry. An unsecured line of credit is usually priced at the prime rate plus a margin, which is often far lower.
If you carry a credit card balance, moving it to a line of credit can cut your interest and help you pay it off sooner at the same monthly payment. The catch is discipline: the card stays open, so avoid building a new balance.
Lines of credit need approval, and your rate depends on your credit score and income. Use the payoff calculator to see the difference for your own numbers.
How much could you save?
Enter what you owe and see your debt-free date at a lower rate. Free, no sign-up.
Try the payoff calculatorAdvertised rates only. Your rate depends on your credit, so check the bank’s page before you apply.