An MRI-compatible catheter that reduces localized heating due to MR scanner-induced currents includes an elongated flexible shaft having a distal end portion and an opposite proximal end portion. A handle is attached to the proximal end portion and includes an electrical connector interface configured to be in electrical communication with an MRI scanner. One or more RF tracking coils are positioned adjacent the distal end portion of the shaft. Each RF tracking coil includes a conductive lead, such as a coaxial cable, that extends between the RF tracking coil and the electrical connector interface and electrically connects the RF tracking coil to an MRI scanner. In some embodiments of the present invention, the conductive lead has a length sufficient to define an odd harmonic/multiple of a quarter wavelength of the operational frequency of the MRI Scanner, and/or includes a series of pre-formed back and forth segments along its length.