Credit Cards
Pay Off Debt with Canada’s Best Balance Transfer Credit Cards
Best Balance Transfer Credit Cards in Canada: Pay Off Debt Faster.
Are you struggling with high-interest debt? Balance transfer credit cards can help. In this article, we’ll explore Canada’s best balance transfer credit cards, featuring low interest rates, flexible terms, and rewards.
High-interest debt can be overwhelming. Balance transfer credit cards offer a solution, allowing you to consolidate debt and pay it off faster.
Top Balance Transfer Credit Cards:
1. Scotiabank Value Visa Card: 0% interest rate for 6 months, 10.99% thereafter.
2. CIBC Select Visa Card: 0% interest rate for 6 months, 10.99% thereafter.
3. TD Balance Transfer Visa Card: 0% interest rate for 6 months, 12.99% thereafter.
4. RBC Balance Transfer Avion Visa Card: 1.99% interest rate for 6 months, 10.99% thereafter.
5. American Express SimplyCash Preferred Card: 1.99% interest rate for 6 months, 10.99% thereafter.
Best CIBC Balance Transfer Credit Card
CIBC Select Visa* Card
The CIBC Select Visa* Card is one of the best balance transfer Visa credit cards in Canada.
With this exclusive digital offer for this CIBC balance transfer credit card, you get :
- 0% interest on balance transfers for up to 10 months†
- a two-year annual fee rebate†
You’ll only have to pay a 1% fee when you transfer your balance from another card. Once this promotional period ends, the standard card interest rate of 13.99% will apply to any remaining balance. This interest rate is lower than the rates charged by many other credit cards.
For example, you could pay for major purchases on another credit card (such as renovations, furniture or appliances) and transfer your balance to the CIBC Select Visa* Card to benefit from its 0% interest rate on balance transfers for ten months.
CIBC Select Visa* Card users can also save on gas thanks to the card’s partnership with Journie Rewards, which allows them to save up to 10 cents per litre at participating service stations.
The CIBC Select Visa* Card has an annual fee of $29 (with a two-year annual fee rebate) and requires an annual family income of at least $15,000 to qualify. Despite its lack of additional benefits, the CIBC Select Visa* Card comes with up to $100,000 in Common Carrier Accident Insurance and allows users to add up to three authorized users at no additional cost.
Best MBNA Balance Transfer Credit Card
MBNA True Line® Mastercard® credit card
The MBNA True Line® Mastercard® credit card is one of Canada’s best options for a low-cost balance transfer. It’s ideal for reducing interest charges and consolidating your debts onto one card.
With this card, you benefit from a 0% interest rate for 12 months on balance transfers made within 90 days of account opening. Transfer fees are a competitive 3%.
This card offers fraud protection, guaranteeing the security of your transactions.
If you want to transfer balances from high-rate cards, the MBNA True Line® Mastercard® credit card allows you to benefit from a 0% rate and pay off your debts at your own pace without high-interest charges during the promotional period.
In short, the MBNA True Line® Mastercard® credit card is an excellent choice for reducing debt and optimizing balance transfers.
Best BMO balance transfer credit cards
BMO eclipse rise Visa* Card
The new BMO eclipse rise Visa* Card is a no-annual-fee travel rewards credit card with no minimum income required.
With this offer, you can earn up to 25,000 points as a welcome bonus:
- 20,000 points after $1,500 in purchases in the first 3 months
- 2,500 bonus points for redeeming at least 12,000 points annually towards your statement balance with Pay with points
- 2,500 bonus points for paying your full credit card balance on time for 12 consecutive months
Moreover, you can get a 0.99% introductory interest rate on Balance Transfers for 9 months (a 2% fee applies to balance amounts transferred).
With the new BMO eclipse rise Visa* Card, you get :
- 5 points for every two dollars spent on recurring bill payments
- 5 points for every two dollars spent at the grocery store
- 5 points for every two dollars in dining and takeout purchases
- 1 point per two dollars spent on everything else
You can use BMO Rewards points for all travel purchases made through the agency or website of your choice (flights, hotels, car rentals, all-inclusive resorts, Airbnb, etc.) or for rewards and gift cards on the BMO Rewards platform.
The new BMO eclipse rise Visa* Card also offers:
- Mobile Device Insurance
- Purchase Protection
- Extended warranty insurance
BMO® Preferred Rate Mastercard®*
The BMO Preferred Rate Mastercard is a Bank of Montreal credit card that offers:
- 0.99% introductory interest rate on Balance Transfers for 9 months
- First-year annual fee waiver
There is no minimum income requirement for this BMO credit card.
You can use this low-interest credit card at Costco because it is a Mastercard credit card.
Finally, you’ll receive insurance on purchases charged to your BMO Preferred Rate Mastercard.
Best Tangerine Balance Transfer Credit Card
Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card has no annual fee and offers cash back.
With this limited-time welcome offer, you can earn an additional 10% cash back (up to $100) when you spend up to $1,000 on everyday purchases during the first 2 months.
You can choose two to three categories that interest you (groceries, gas, furniture, home improvement, recurring bills, pharmacy, etc.) to earn 2% cash back! And there is no annual cash back limit. It is one of the best credit cards for renovations.
In addition, the Tangerine Mastercard offers several insurance coverages for your purchases :
- 90 days purchase insurance
- One year extended warranty
Finally, during the first 30 days you hold the card, transfer credit card balances and pay only 1.95% interest on these balances for the first 6 months.
Best Scotia Balance Transfer Credit Card
Scotia Momentum® No-Fee Visa* card
The Scotia Momentum® No-Fee Visa* Card is a great cash-back credit card in Canada. Currently, you can earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases).
With the Scotia Momentum® No-Fee Visa* Card, you get :
- 1% Cash back on all eligible gas station, grocery store, drug store purchases and recurring payments.
- 0.5% on all other purchases
This is a great no-fee Visa credit card to earn cash back.
Plus, you can get a 0% introductory rate on balance transfers for the first six months. A 2% fee applies to cash advances.
Scotiabank® Value VISA Card
The Scotiabank Value® Visa* Card is one of the best credit cards for cash advances (including balance transfers) in Canada.
You can get an introductory interest rate of 0% on cash advances for the first ten months (including balance transfers). You pay no annual fee for the first year with this Visa credit card.
What’s more, this Visa credit card offers a low interest rate: 13.99% on purchases, balance transfers and cash advances.
Scotia Momentum® Visa* Card
The Scotia Momentum Visa Card is a great cash-back credit card in Canada.
With the Scotia Momentum Visa Card, you get:
- 2% on eligible gas station, grocery store and drug store purchases and recurring bill payments
- 1% cash back on everything else
This is a perfect Visa credit card to earn cash back rewards.
And you can get a 2.99% introductory interest rate with 0% fee on balance transfers for the first 6 months.
Best balance transfer offers for business credit cards
BMO Rewards® World Elite®* Business Mastercard®*
The BMO World Elite®* Business Mastercard®* is one of Canada’s best travel points Mastercard for Business credit cards. You can earn up to 100,000 points as a welcome bonus:
- 20,000 points when you make your first purchase with your card in the first 75 days after the account open date;
- 8,000 points per month when you spend at least $3,000 per month within month 3 and 12 after the account open date (for a total of 80,000 points).
Plus, the annual fee is waived for the first year! And you get 2 free visits a year to DragonPass airport lounges.
You can also enjoy a 0% introductory interest rate on balance transfers for nine months (with a 3% transfer fee).
With the BMO World Elite®* Business Mastercard®*, you earn 4 points per dollar spent on:
- gas purchases
- office supply purchases
- cell phone/internet payments
And 1.5 points for every dollar you spend, including at Costco or for significant purchases at home improvement stores.
You can use BMO Rewards points for all travel purchases made through the agency or website of your choice (flights, hotels, car rentals, all-inclusive resorts, Airbnb, etc.) or for rewards and gift cards on the BMO Rewards platform.
You can also combine the points you earn with the other two BMO Rewards cards to save even more on your travels.
With the BMO World Elite®* Business Mastercard®*, you get many travel insurance coverages:
- Collision Damage Waiver
- Car Rental Personal Effects & Business Property
- Car Rental Accidental Death & Dismemberment
- Baggage & Personal Effects
- Baggage insurance in case of delay
- Flight Cancellation
- Trip Interruption/Trip Delay
- Flight delay
- Common Carrier Insurance
And for your purchases :
- Extended Warranty
- Purchase Protection
BMO CashBack® Business Mastercard®*
The BMO CashBack Business Mastercard is one of Canada’s best cashback Mastercard business credit cards.
You can get 10% cash back for three months on:
- gas purchases
- office supply purchases
- cell phone/internet payments
After that, you’ll get 1.5% on these purchases and 1.75% at Shell.
You can also enjoy a 0% introductory interest rate on balance transfers for nine months (with a 3% transfer fee).
Credit card balance transfer: how to save on your interest rates
A credit card balance transfer is an effective strategy for reducing your interest charges and saving money.
Transferring your balance to a 0% interest credit card allows you to consolidate your debts at an advantageous rate, provided you understand the steps involved and choose the best offer for you.
This method simplifies the management of your debt and speeds up repayment by limiting accumulated interest. Here’s how to make a balance transfer and reap the maximum benefits.
Choose the best balance transfer credit card
Identify the balance transfer credit card that best suits your financial needs to get started. Here are the criteria to consider when making your choice:
- Interest rate on balance transfers: Look for a credit card offering 0% or a low promotional rate on balance transfers. This will allow you to significantly reduce the cost of your debt during the promotional period.
- Length of promotional period: Choose a card with a promotional offer long enough (six to 12 months) to pay off your balance without straining your budget. A more extended period will give you more flexibility and time to plan your payments efficiently.
- Balance transfer fees: Some issuers charge fees ranging from 1% to 5% of the balance transferred. Be sure to compare these fees to evaluate the total cost of the transaction. In some cases, fees can reduce the benefits of a lower interest rate, so it’s important to calculate whether the transaction is profitable.
This analysis will help you choose the best balance transfer card, such as the CIBC Select Visa* Card, which offers 0% on balance transfers for ten months.
Review several options to find the card that best suits your financial situation and repayment goals.
Evaluate the amount to be transferred
Once you’ve obtained a credit card, decide how much you want to transfer.
Your new card’s credit limit limits the transferable amount. To maximize savings, we recommend that you give priority to debts with the highest interest rates. If you have several debts, carry out a detailed analysis to determine which ones to transfer based on interest rates and amounts owed. This will enable you to make the most of your new low-rate credit card.
For example, if you have a $12,000 debt with an interest rate of 19.99% on one card and another $5,000 debt with a rate of 14.99%, it would be more advantageous to transfer the debt with the higher rate first. This will reduce your interest costs and help you focus on paying off your balance faster.
Start the balance transfer process
The balance transfer procedure varies from one credit card issuer to another. Some will ask you to provide information about the accounts to be reimbursed at the time of application, while others will invite you to contact them once the card has been received. It’s essential to understand the steps required by the issuer to avoid any delays or complications.
Transfer fees may vary: for example, the CIBC Select Visa* Card charges a 1% transfer fee, which is relatively low compared with other cards that can charge up to 5%. It is, therefore, essential to find out about each card’s specific terms and conditions before proceeding. Once the debts to be eliminated have been specified, the transfer can be initiated, simplifying your payments by consolidating balances on a single low-interest card.
Draw up a repayment plan
With 0% interest on balance transfers, work out a rigorous repayment plan to avoid any remaining balance at the end of the promotional period. Divide your total balance by the promotional period to determine a monthly repayment amount. This will help you maximize your savings and reduce your debt faster.
For example, if you’ve transferred a $5,000 balance with a 10-month promotional period, your goal should be to pay off at least $500 monthly. If this monthly payment is too high for your budget, try to find a compromise by repaying as much as possible during the promotional period, as even a partial repayment will save you on interest charges compared with a high-rate card.
It’s also a good idea to set up automatic payments to avoid late payments, as any delay could result in losing the promotional rate. By planning ahead and meeting deadlines, you can ensure that you make the most of this debt-reduction opportunity.
Advantages and disadvantages of credit card balance transfers
Advantages of credit card balance transfers
- Lower interest charges: Transferring a balance to a low- or no-interest card means you pay less interest. This means that each monthly payment contributes more to reducing the principal, which helps you pay off your debt faster.
- Debt consolidation: A balance transfer can combine several balances on a single card, making it easier to manage your debts. A single monthly payment simplifies your budget management and helps you avoid forgetting or late payments.
- Flexibility: You can choose a card that suits your financial goals and budget better. Some balance transfer cards also offer additional benefits, such as rewards programs or insurance, making the offer even more attractive.
- Opportunity to reduce financial pressure: By lowering the interest you pay monthly, you can relieve financial pressure and concentrate on repaying the capital. This gives you greater visibility over your finances so you can plan more serenely.
Disadvantages of credit card balance transfers
- Transfer fees: Some issuers charge transfer fees, which increase the total cost of debt. These fees can represent a significant percentage of the amount transferred, reducing the potential savings from the lower interest rate.
- Post-promotional interest rate: Once the reduced-rate period is over, the standard interest rate may apply and increase your costs. Understanding the contract terms, including the interest rate that will apply after the promotional period ends is crucial.
- Impact on credit rating: Opening a new line of credit may temporarily affect your credit score. What’s more, if you fail to repay the transferred balance before the end of the promotional period, your overall indebtedness may increase, which could have a negative impact on your credit rating.
- Temptation to spend more: When you make a balance transfer, you may be tempted to continue using your old credit cards, which could lead to further debt accumulation. It’s essential to be disciplined and not increase your spending while working to pay off your debt.
Balance transfer summary
Credit card balance transfer is a powerful solution for reducing interest charges and eliminating debt faster. You can make the most of this financial strategy by choosing the right 0% interest credit card, carefully evaluating fees and developing an effective repayment plan.
Don’t forget to compare the different offers available, calculate the total cost, taking transfer fees into account, and plan your payments carefully. With proper management, a balance transfer can help you achieve your financial goals more quickly and improve your overall financial situation.
Benefits of Balance Transfer Credit Cards:
1. Low Interest Rates: Save on interest and pay off debt faster.
2. Flexible Terms: Choose from various promotional periods.
3. Rewards and Benefits: Earn cashback, travel points, or other rewards.
4. Debt Consolidation: Combine multiple debts into one manageable payment.
5. Improved Credit Score: Pay off debt and boost your credit score.
How to Choose the Best Balance Transfer Credit Card:
1. Consider Your Credit Score: Choose a card that matches your credit score.
2. Evaluate Interest Rates: Compare rates among different cards.
3. Check Fees: Look for cards with low or no balance transfer fees.
4. Read Reviews: Research and compare cards before applying.
5. Calculate Savings: Estimate interest savings with a balance transfer credit card.
Frequently Asked Questions (FAQs):
Best Balance Transfer Credit Cards in Canada – November 2024
These credit cards have a low-interest rate for purchases or balance transfers.
Check out this post on balance transfer, to learn more about this technique.
Best Balance Transfer Credit Card Offers
Here is a table summarizing the different promotional offers for balance transfers or cash advances:
| Credit card | Institution | Offer | Transfer fee | Annual fee |
| CIBC Select Visa* Card | CIBC | 0% for 10 months on balance transfers | 1% | $29 ($0 for the first two years) |
| MBNA True Line® Mastercard® | MBNA | 0% for 12 months on balance transfers | 3% | $0 |
| Scotia Momentum® No-Fee VISA* Card | Scotia | 0% for 6 months on balance transfers | 2% | $0 |
| BMO eclipse rise Visa* Card | BMO | 0.99% for 9 months on balance transfers | 2 % | 0 $ |
| BMO Preferred Rate Mastercard | BMO | 0.99% for 9 months on balance transfers | 2% | $29 ($0 the first year) |
| Scotiabank Value® Visa* Card | Scotia | 0% for 10 months on cash advances | 1% | $29 ($0 the first year) |
| Tangerine Money-Back Credit Card | Tangerine | 1.95% for 6 months on balance transfers | 1% | $0 |
| Scotia Momentum VISA Card | Scotia | 2.99% for 6 months on balance transfers | 0% | $39 |
| BMO Rewards® World Elite®* Business Mastercard®* | BMO | 0% for 9 months on balance transfers | 3% | $149 ($0 the first year) |
| BMO CashBack® Business Mastercard®* | BMO | 0% for 9 months on balance transfers | 3% | $0 |
For more details, read on or click on the name of a card.
BMO World Elite®* Business Mastercard®* 
BMO CashBack® Business Mastercard®* 
Best CIBC Balance Transfer Credit Card
CIBC Select Visa* Card
The CIBC Select Visa* Card is one of the best balance transfer Visa credit cards in Canada.
With this exclusive digital offer for this CIBC balance transfer credit card, you get :
- 0% interest on balance transfers for up to 10 months†
- a two-year annual fee rebate†
You’ll only have to pay a 1% fee when you transfer your balance from another card. Once this promotional period ends, the standard card interest rate of 13.99% will apply to any remaining balance. This interest rate is lower than the rates charged by many other credit cards.
For example, you could pay for major purchases on another credit card (such as renovations, furniture or appliances) and transfer your balance to the CIBC Select Visa* Card to benefit from its 0% interest rate on balance transfers for ten months.
CIBC Select Visa* Card users can also save on gas thanks to the card’s partnership with Journie Rewards, which allows them to save up to 10 cents per litre at participating service stations.
The CIBC Select Visa* Card has an annual fee of $29 (with a two-year annual fee rebate) and requires an annual family income of at least $15,000 to qualify. Despite its lack of additional benefits, the CIBC Select Visa* Card comes with up to $100,000 in Common Carrier Accident Insurance and allows users to add up to three authorized users at no additional cost.
Best of November 2024- Digital Exclusive Offer
- Balance Transfer Offer
- Low-interest
Best MBNA Balance Transfer Credit Card
MBNA True Line® Mastercard® credit card
The MBNA True Line® Mastercard® credit card is one of Canada’s best options for a low-cost balance transfer. It’s ideal for reducing interest charges and consolidating your debts onto one card.
With this card, you benefit from a 0% interest rate for 12 months on balance transfers made within 90 days of account opening. Transfer fees are a competitive 3%.
This card offers fraud protection, guaranteeing the security of your transactions.
If you want to transfer balances from high-rate cards, the MBNA True Line® Mastercard® credit card allows you to benefit from a 0% rate and pay off your debts at your own pace without high-interest charges during the promotional period.
In short, the MBNA True Line® Mastercard® credit card is an excellent choice for reducing debt and optimizing balance transfers.
- Balance Transfer Offer
- No annual fee
- Accepted at Costco
Best BMO balance transfer credit cards
BMO eclipse rise Visa* Card
The new BMO eclipse rise Visa* Card is a no-annual-fee travel rewards credit card with no minimum income required.
With this offer, you can earn up to 25,000 points as a welcome bonus:
- 20,000 points after $1,500 in purchases in the first 3 months
- 2,500 bonus points for redeeming at least 12,000 points annually towards your statement balance with Pay with points
- 2,500 bonus points for paying your full credit card balance on time for 12 consecutive months
Moreover, you can get a 0.99% introductory interest rate on Balance Transfers for 9 months (a 2% fee applies to balance amounts transferred).
With the new BMO eclipse rise Visa* Card, you get :
- 5 points for every two dollars spent on recurring bill payments
- 5 points for every two dollars spent at the grocery store
- 5 points for every two dollars in dining and takeout purchases
- 1 point per two dollars spent on everything else
You can use BMO Rewards points for all travel purchases made through the agency or website of your choice (flights, hotels, car rentals, all-inclusive resorts, Airbnb, etc.) or for rewards and gift cards on the BMO Rewards platform.
The new BMO eclipse rise Visa* Card also offers:
- Mobile Device Insurance
- Purchase Protection
- Extended warranty insurance
- No annual fee
- Purchase Insurance
- Mobile Device Insurance
BMO® Preferred Rate Mastercard®*
The BMO Preferred Rate Mastercard is a Bank of Montreal credit card that offers:
- 0.99% introductory interest rate on Balance Transfers for 9 months
- First-year annual fee waiver
There is no minimum income requirement for this BMO credit card.
You can use this low-interest credit card at Costco because it is a Mastercard credit card.
Finally, you’ll receive insurance on purchases charged to your BMO Preferred Rate Mastercard.
- Low-interest
- Balance Transfer
- Accepted at Costco
Best Tangerine Balance Transfer Credit Card
Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card has no annual fee and offers cash back.
With this limited-time welcome offer, you can earn an additional 10% cash back (up to $100) when you spend up to $1,000 on everyday purchases during the first 2 months.
You can choose two to three categories that interest you (groceries, gas, furniture, home improvement, recurring bills, pharmacy, etc.) to earn 2% cash back! And there is no annual cash back limit. It is one of the best credit cards for renovations.
In addition, the Tangerine Mastercard offers several insurance coverages for your purchases :
- 90 days purchase insurance
- One year extended warranty
Finally, during the first 30 days you hold the card, transfer credit card balances and pay only 1.95% interest on these balances for the first 6 months.
- No annual fee
- Accepted at Costco
Best Scotia Balance Transfer Credit Card
Scotia Momentum® No-Fee Visa* card
The Scotia Momentum® No-Fee Visa* Card is a great cash-back credit card in Canada. Currently, you can earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases).
With the Scotia Momentum® No-Fee Visa* Card, you get :
- 1% Cash back on all eligible gas station, grocery store, drug store purchases and recurring payments.
- 0.5% on all other purchases
This is a great no-fee Visa credit card to earn cash back.
Plus, you can get a 0% introductory rate on balance transfers for the first six months. A 2% fee applies to cash advances.
- No annual fee
- Reduced interest rate on balance transfers
Scotiabank® Value VISA Card
The Scotiabank Value® Visa* Card is one of the best credit cards for cash advances (including balance transfers) in Canada.
You can get an introductory interest rate of 0% on cash advances for the first ten months (including balance transfers). You pay no annual fee for the first year with this Visa credit card.
What’s more, this Visa credit card offers a low interest rate: 13.99% on purchases, balance transfers and cash advances.
- Low-interest on cash advances
- Low-interest
Scotia Momentum® Visa* Card
The Scotia Momentum Visa Card is a great cash-back credit card in Canada.
With the Scotia Momentum Visa Card, you get:
- 2% on eligible gas station, grocery store and drug store purchases and recurring bill payments
- 1% cash back on everything else
This is a perfect Visa credit card to earn cash back rewards.
And you can get a 2.99% introductory interest rate with 0% fee on balance transfers for the first 6 months.
- Balance Transfer Offer
Best balance transfer offers for business credit cards
BMO Rewards® World Elite®* Business Mastercard®*
The BMO World Elite®* Business Mastercard®* is one of Canada’s best travel points Mastercard for Business credit cards. You can earn up to 100,000 points as a welcome bonus:
- 20,000 points when you make your first purchase with your card in the first 75 days after the account open date;
- 8,000 points per month when you spend at least $3,000 per month within month 3 and 12 after the account open date (for a total of 80,000 points).
Plus, the annual fee is waived for the first year! And you get 2 free visits a year to DragonPass airport lounges.
You can also enjoy a 0% introductory interest rate on balance transfers for nine months (with a 3% transfer fee).
With the BMO World Elite®* Business Mastercard®*, you earn 4 points per dollar spent on:
- gas purchases
- office supply purchases
- cell phone/internet payments
And 1.5 points for every dollar you spend, including at Costco or for significant purchases at home improvement stores.
You can use BMO Rewards points for all travel purchases made through the agency or website of your choice (flights, hotels, car rentals, all-inclusive resorts, Airbnb, etc.) or for rewards and gift cards on the BMO Rewards platform.
You can also combine the points you earn with the other two BMO Rewards cards to save even more on your travels.
With the BMO World Elite®* Business Mastercard®*, you get many travel insurance coverages:
- Collision Damage Waiver
- Car Rental Personal Effects & Business Property
- Car Rental Accidental Death & Dismemberment
- Baggage & Personal Effects
- Baggage insurance in case of delay
- Flight Cancellation
- Trip Interruption/Trip Delay
- Flight delay
- Common Carrier Insurance
And for your purchases :
- Extended Warranty
- Purchase Protection
- 4X points on gas, office supplies, cell phone and internet bills
- Access to VIP Lounges
- Accepted at Costco
BMO CashBack® Business Mastercard®*
The BMO CashBack Business Mastercard is one of Canada’s best cashback Mastercard business credit cards.
You can get 10% cash back for three months on:
- gas purchases
- office supply purchases
- cell phone/internet payments
After that, you’ll get 1.5% on these purchases and 1.75% at Shell.
You can also enjoy a 0% introductory interest rate on balance transfers for nine months (with a 3% transfer fee).
- No annual fee
- Free Supplementary Cards
- Accepted at Costco
Credit card balance transfer: how to save on your interest rates
A credit card balance transfer is an effective strategy for reducing your interest charges and saving money.
Transferring your balance to a 0% interest credit card allows you to consolidate your debts at an advantageous rate, provided you understand the steps involved and choose the best offer for you.
This method simplifies the management of your debt and speeds up repayment by limiting accumulated interest. Here’s how to make a balance transfer and reap the maximum benefits.
Choose the best balance transfer credit card
Identify the balance transfer credit card that best suits your financial needs to get started. Here are the criteria to consider when making your choice:
- Interest rate on balance transfers: Look for a credit card offering 0% or a low promotional rate on balance transfers. This will allow you to significantly reduce the cost of your debt during the promotional period.
- Length of promotional period: Choose a card with a promotional offer long enough (six to 12 months) to pay off your balance without straining your budget. A more extended period will give you more flexibility and time to plan your payments efficiently.
- Balance transfer fees: Some issuers charge fees ranging from 1% to 5% of the balance transferred. Be sure to compare these fees to evaluate the total cost of the transaction. In some cases, fees can reduce the benefits of a lower interest rate, so it’s important to calculate whether the transaction is profitable.
This analysis will help you choose the best balance transfer card, such as the CIBC Select Visa* Card, which offers 0% on balance transfers for ten months.
Review several options to find the card that best suits your financial situation and repayment goals.
Best of November 2024- Digital Exclusive Offer
- Balance Transfer Offer
- Low-interest
Evaluate the amount to be transferred
Once you’ve obtained a credit card, decide how much you want to transfer.
Your new card’s credit limit limits the transferable amount. To maximize savings, we recommend that you give priority to debts with the highest interest rates. If you have several debts, carry out a detailed analysis to determine which ones to transfer based on interest rates and amounts owed. This will enable you to make the most of your new low-rate credit card.
For example, if you have a $12,000 debt with an interest rate of 19.99% on one card and another $5,000 debt with a rate of 14.99%, it would be more advantageous to transfer the debt with the higher rate first. This will reduce your interest costs and help you focus on paying off your balance faster.
Start the balance transfer process
The balance transfer procedure varies from one credit card issuer to another. Some will ask you to provide information about the accounts to be reimbursed at the time of application, while others will invite you to contact them once the card has been received. It’s essential to understand the steps required by the issuer to avoid any delays or complications.
Transfer fees may vary: for example, the CIBC Select Visa* Card charges a 1% transfer fee, which is relatively low compared with other cards that can charge up to 5%. It is, therefore, essential to find out about each card’s specific terms and conditions before proceeding. Once the debts to be eliminated have been specified, the transfer can be initiated, simplifying your payments by consolidating balances on a single low-interest card.
Draw up a repayment plan
With 0% interest on balance transfers, work out a rigorous repayment plan to avoid any remaining balance at the end of the promotional period. Divide your total balance by the promotional period to determine a monthly repayment amount. This will help you maximize your savings and reduce your debt faster.
For example, if you’ve transferred a $5,000 balance with a 10-month promotional period, your goal should be to pay off at least $500 monthly. If this monthly payment is too high for your budget, try to find a compromise by repaying as much as possible during the promotional period, as even a partial repayment will save you on interest charges compared with a high-rate card.
It’s also a good idea to set up automatic payments to avoid late payments, as any delay could result in losing the promotional rate. By planning ahead and meeting deadlines, you can ensure that you make the most of this debt-reduction opportunity.
Advantages and disadvantages of credit card balance transfers
Advantages of credit card balance transfers
- Lower interest charges: Transferring a balance to a low- or no-interest card means you pay less interest. This means that each monthly payment contributes more to reducing the principal, which helps you pay off your debt faster.
- Debt consolidation: A balance transfer can combine several balances on a single card, making it easier to manage your debts. A single monthly payment simplifies your budget management and helps you avoid forgetting or late payments.
- Flexibility: You can choose a card that suits your financial goals and budget better. Some balance transfer cards also offer additional benefits, such as rewards programs or insurance, making the offer even more attractive.
- Opportunity to reduce financial pressure: By lowering the interest you pay monthly, you can relieve financial pressure and concentrate on repaying the capital. This gives you greater visibility over your finances so you can plan more serenely.
Disadvantages of credit card balance transfers
- Transfer fees: Some issuers charge transfer fees, which increase the total cost of debt. These fees can represent a significant percentage of the amount transferred, reducing the potential savings from the lower interest rate.
- Post-promotional interest rate: Once the reduced-rate period is over, the standard interest rate may apply and increase your costs. Understanding the contract terms, including the interest rate that will apply after the promotional period ends is crucial.
- Impact on credit rating: Opening a new line of credit may temporarily affect your credit score. What’s more, if you fail to repay the transferred balance before the end of the promotional period, your overall indebtedness may increase, which could have a negative impact on your credit rating.
- Temptation to spend more: When you make a balance transfer, you may be tempted to continue using your old credit cards, which could lead to further debt accumulation. It’s essential to be disciplined and not increase your spending while working to pay off your debt.
Balance transfer summary
Credit card balance transfer is a powerful solution for reducing interest charges and eliminating debt faster. You can make the most of this financial strategy by choosing the right 0% interest credit card, carefully evaluating fees and developing an effective repayment plan.
Don’t forget to compare the different offers available, calculate the total cost, taking transfer fees into account, and plan your payments carefully. With proper management, a balance transfer can help you achieve your financial goals more quickly and improve your overall financial situation.
Frequently Asked Questions about Credit Card Balance Transfers
Here are frequently asked questions about credit cards in Canada.
What is a credit card balance transfer?
Credit card balance transfers are an option for credit card holders who have high balances on their cards and are looking to reduce their interest charges. They allow you to transfer your balance from a high-rate credit card to a lower-rate card, which can result in significant savings on interest costs. However, it is essential to understand the fees associated with balance transfers, including transfer fees and higher interest rates on balance transfers than on purchases made with the card. Therefore, it is essential to compare the various offers and ensure that the cost of balance transfers will be less than the savings on interest charges.
What is a credit card balance transfer promotion?
Credit card balance transfer promotions are temporary offers from credit card issuers to encourage cardholders to transfer their balance from a higher-rate card to a lower-rate card. These promotions may include reduced interest rates on balance transfers or free transfer fees. They are usually offered for a limited time. They are subject to strict conditions, such as not having an outstanding balance on the new card or making new purchases with the card during the promotional period. It is essential to read the terms and conditions of the offer carefully before signing up for a balance transfer promotion and to make sure you pay off the balance before the end of the prime rate period.
What is a promotional credit card balance transfer rate?
A promotional credit card balance transfer rate is a reduced interest rate credit card issuers offer as an incentive for cardholders to transfer their balance from a high-rate card to a lower-rate card. This rate is generally lower than the usual interest rates applied to balance transfers and can represent significant savings for users. However, it’s essential to read the terms and conditions of the offer carefully before signing up for a promotional balance transfer rate, as there may be transfer fees or strict requirements that must be met to qualify for the reduced rate. The promotional balance transfer rate is generally offered for a limited time and may be subject to early termination conditions.
What is a credit card balance transfer fee?
Credit card balance transfer fees are fees charged by credit card issuers when a cardholder transfers their balance from a higher-rate card to a lower-rate card. These fees are generally expressed as a percentage of the amount transferred balance and may vary by the card issuer and offer. It is essential to understand the balance transfer fee before you sign up for a balance transfer and to ensure that the savings on interest charges will exceed the cost of the transfer fee. It is also important to check if the transfer fee is included in the interest rate or is charged separately. Balance transfer fees can be avoided by choosing a credit card with no balance transfer fee.
Are there any fees associated with a credit card balance transfer?
Yes, a fee is frequently charged to complete a credit card balance transfer: between 1% and 3% of the total amount transferred.
What is a credit card cash advance rate?
A credit card cash advance rate is the interest rate applied to cash advances made with a credit card in Canada. Cash advances are withdrawals of money using your credit card at an ATM or by requesting it from your card issuer. The cash advance rate is generally higher than the interest rates charged on credit card purchases and may vary by card issuer and offer. It is important to understand the fees associated with cash advances and compare them to the interest rates offered by other credit options before committing to a cash advance. It is also essential to ensure that the cash advance balance is repaid as soon as possible to avoid costly interest charges.
What is the best balance transfer credit card in Canada?
Credit card balance transfer offers are constantly evolving. Currently, the two best balance transfer credit cards are:
- CIBC Select Visa* Card
- BMO® Preferred Rate Mastercard®*
How to improve credit score with a credit card balance transfer in Canada?
Here are some tips for improving your credit score with a credit card balance transfer in Canada:
- Transfer your balance to a lower interest rate credit card: By transferring your balance to a lower rate card, you can reduce your interest costs and pay off your debt faster.
- Pay off your balance before the end of the prime rate period: To take full advantage of the benefits of a balance transfer, it is important to pay off your balance before the end of the prime rate period.
- Don’t make new purchases with the credit card: limit your use of the credit card to paying off your balance and avoid making new purchases that could put you in additional debt.
- Pay your bills on time: Pay your credit card bills on time to avoid late payment fees and show your creditors that you can manage your credit responsibly.
By following these tips, you should be able to improve your credit score with a credit card balance transfer.
How do I transfer my Scotiabank credit card balance?
To make a credit card balance transfer with Scotiabank, you can follow these steps:
- Log in to your Scotiabank credit card account online or by phone.
- Check to see if your credit card account is eligible for a balance transfer and what the applicable interest rate is.
- Choose the amount you wish to transfer and the credit card to which you wish to transfer the balance.
- Provide the recipient’s credit card information, including account number and cardholder name.
- Confirm the details of the balance transfer and agree to the terms and conditions of the transaction.
- Wait for Scotiabank to process your balance transfer request and transfer the balance to the new credit card.
It is important to note that credit card balance transfers may incur transaction fees and interest charges, so it is important to check the terms and conditions of your credit card account before making a balance transfer.
How do I make a BMO credit card balance transfer?
To make a credit card balance transfer with Bank of Montreal (BMO), you can follow these steps:
- Log in to your BMO credit card account online or by phone.
- Check to see if your credit card account is eligible for a balance transfer and what the applicable interest rate is.
- Choose the amount you wish to transfer and the credit card to which you wish to transfer the balance.
- Provide the recipient’s credit card information, including account number and cardholder name.
- Confirm the details of the balance transfer and agree to the terms and conditions of the transaction.
- Wait for BMO to process your balance transfer request and transfer the balance to the new credit card.
It is important to note that credit card balance transfers may incur transaction fees and interest charges, so it is important to check the terms and conditions of your credit card account before making a balance transfer.
Are there balance transfer credit cards with low-interest rates?
Yes, there are balance transfer credit cards with low-interest rates. See the list of the best low-interest credit cards in Canada.
Is it possible to transfer a balance to a credit card from the same financial institution?
No, institutions like Desjardins or CIBC generally don’t allow balance transfers between their own low-interest credit cards.
Does a balance transfer on a credit card have a negative impact on my credit score?
No, making a balance transfer, even with a 0 interest balance transfer credit card, is not considered a red flag by the credit bureaus.
Do all card issuers offer balance transfer options?
Most issuers, including National Bank and BMO, offer balance transfer options, but it’s best to check each credit card’s balance transfer terms and conditions.
Which banks offer balance transfers at 0% interest?
MBNA with the MBNA True Line® Mastercard® and CIBC with the CIBC Select Visa* Card are among the few banks offering 0% interest credit card promotions for balance transfers.
Can opening a balance transfer credit card hurt my credit rating?
No, but keep in mind that every new card application requires a credit check, which could slightly affect your credit rating in the short term.
Is it worthwhile to make a balance transfer?
If you have an outstanding balance with a high interest rate, transferring it to a card with a low promotional rate can result in significant savings.
What are the disadvantages of credit cards specializing in balance transfers?
These cards often offer few additional benefits and may include a transfer fee, which is usually a percentage of the transferred balance.
What is a balance transfer on a credit card?
This is the process of moving the balance from one card to another, often to benefit from a promotional interest rate. Some cards also allow cash advances directly to your card account.
Are there any fees associated with balance transfers?
Yes, credit card balance transfer fees generally vary between 1% and 3% of the total amount transferred.
What is the best balance transfer offer currently available?
CIBC Select Visa* Card offers 0% interest with this balance transfer credit card for 10 months, with a 1% transfer fee.
Can I transfer balances between cards issued by the same bank?
No, financial institutions like TD and Scotia do not generally allow this type of credit card balance transfer.
Do balance transfers affect my credit rating?
No, balance transfers in themselves have no negative impact on your credit score.
Do all issuers offer credit cards with balance transfer options?
No, it is important to check each welcome offer and the terms and conditions of each card before applying for one.
Should I opt for a balance transfer or a personal loan?
This depends on the rates offered and the length of the promotional period. If the interest rate is lower and you can pay off the balance during this period, a balance transfer may be the best option.
Can I earn cash back or rewards on balance transfers?
No, credit card rewards generally apply only to new purchases and not to balance transfers or payments.
What is a balance transfer?
A balance transfer is a financial transaction in which you move debt from one credit card to another. This is often done to benefit from a lower interest rate or a promotional period offered by the new card. The aim is to reduce the costs associated with debt repayment and make it easier to manage.
In general, credit cards that offer this option offer a reduced interest rate for a set period of time, allowing you to pay off your debt faster and at a lower cost. However, it’s important to read the conditions carefully, as transfer fees may apply, and the promotional rate is often only valid for a limited time.
Balance transfers are a particularly useful strategy if you’ve accumulated significant debt on a high-interest card. By transferring this debt to a card with a lower interest rate, you can make significant savings on interest payments.
How do I transfer a capital one credit card balance?
To carry out a balance transfer with a Capital One credit card, start by checking whether your card is eligible for this operation. Then log in to your online account and follow the instructions to initiate a balance transfer. You will need to provide details of the account from which you wish to transfer the balance. Once submitted, Capital One will review your request and, if approved, process the transfer. Please note that transfer fees and specific conditions may apply.
What is the best balance transfer credit card in Canada?
Scotiabank Value Visa Card.
How do balance transfer credit cards work?
Balance transfer credit cards allow you to transfer existing debt to a new card with a lower interest rate.
What is the average interest rate for balance transfer credit cards?
Around 10%.
Can I transfer multiple balances to one credit card?
Yes, many balance transfer credit cards allow multiple balance transfers.
Conclusion:
Canada’s best balance transfer credit cards offer a cost-effective solution to manage debt. By choosing the right card, you can save on interest and achieve financial stability.
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