RBC Visa Classic Low Rate Card Review

Annual Fee
Purchase Interest Rate
Cash Advance Interest Rate
Min Personal Income Required
Recommended Credit Score
740 850 670 739 580 669 0 579
Down to an 11.99% purchase interest rate with an annual fee of $20.

The RBC Visa Classic Low Rate credit card is aptly named, and a great asset for the right kind of cardholder. Its 1-2 punch is that it offers low interest rates while remaining accessible to customers who might not have a high annual income or credit score.

Interest Rates

Instead of exposing a large purchase to standard Canadian credit card interest rates (usually around 20%) the Visa Classic Low Rate charges about half of that in purchase interest and cash advance interest: 11.99%. This makes the card ideal for those who are planning on charging a large purchase to credit and want flexibility in when they pay the balance off.

It’s important to note that the purchase interest rate that RBC offers for the Visa Classic Low Rate card correlates to an applicant’s credit score. Applicants with high credit scores are eligible for the low 11.99% rate, while applicants with low credit scores might receive a purchase interest rate as high as 19.99%. We only recommend this card to those with average/fair credit scores or higher.

Other Card Perks

Alongside the low interest rates, cardholders will enjoy basic purchase protection. When using the card to pay for new items, these purchases will benefit from coverage against direct loss or physical damage. If the items come with a manufacturer’s warranty, the RBC Visa Classic Low Rate can extend the warranty by up to one additional year.

Another perk comes courtesy of Canada’s Petro-Points program. Cardholders that link their card to the program instantly save 3 cents per litre on fuel and will boost their Petro-Points earnings by 20.00% when filling up at Petro-Canada pumps across the country. Finally, RBC offers some extra benefits that can be purchased, like roadside assistance and travel insurance.

Pay as low as 11.99% purchase and cash advance interest rate!
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Who’s the Card For?

Cardholders who might not pay off their balance and let it ride from month to month are exposed to interest charges that add up over time. In these circumstances it’s preferable to use cards like the RBC Classic Low Rate to avoid compounding balances as much as possible.

It’s safe to assume that savings in interest will outweigh the card’s annual fee of just $20.

For example, if you’re carrying a balance of $1,000 with a credit card that has a standard 20.00% purchase interest rate, then you’d rack up $100 in interest in just 6 months   With this card’s lowest interest rate of 11.99%, your interest will be $61.47 over 6 months—a savings of $38.53.

 Month 0Month 1Month 2Month 3Month 4Month 5Month 6
Interest Charges$9.99$10.09$10.19$10.29$10.40$10.50
Ending Balance$1,000.00$1,009.99$1,020.08$1,030.28$1,040.57$1,050.97$1,061.47

A final benefit to consider is that RBC claims they are more holistic than the average bank in their evaluation of card applicants. Instead of putting a lot of stock in a single credit score or report, RBC also considers an applicant’s savings and debt to income ratio when considering applications. This opens the card up to more types of applicants with varied credit histories.

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