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.
Here is a table summarizing the different promotional offers for balance transfers or cash advances:
For more details, read on or click on the name of a 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 :
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.
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.
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:
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 :
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:
The BMO Preferred Rate Mastercard is a Bank of Montreal credit card that offers:
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.
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 :
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.
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 :
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.
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.
The Scotia Momentum Visa Card is a great cash-back credit card in Canada.
With the Scotia Momentum Visa Card, you get:
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.
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:
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:
And 1.5 points for every dollar you spend, including at Costco or for significant purchases at home improvement stores.
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:
And for your purchases :
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:
After that, you’ll get 1.5% on these purchases and 1.75% at Shell.
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.
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:
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.
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.
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.
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.
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.
Here are frequently asked questions in the milesopedia community about credit cards in Canada.
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.
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.
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.
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.
Yes, a fee is frequently charged to complete a credit card balance transfer: between 1% and 3% of the total amount transferred.
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.
Credit card balance transfer offers are constantly evolving. Currently, the two best balance transfer credit cards are:
Here are some tips for improving your credit score with a credit card balance transfer in Canada:
By following these tips, you should be able to improve your credit score with a credit card balance transfer.
To make a credit card balance transfer with Scotiabank, you can follow these steps:
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.
To make a credit card balance transfer with Bank of Montreal (BMO), you can follow these steps:
Yes, there are balance transfer credit cards with low-interest rates. See the list of the best low-interest credit cards in Canada.
No, institutions like Desjardins or CIBC generally don’t allow balance transfers between their own low-interest credit cards.
No, making a balance transfer, even with a 0 interest balance transfer credit card, is not considered a red flag by the credit bureaus.
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.
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.
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.
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.
These cards often offer few additional benefits and may include a transfer fee, which is usually a percentage of the transferred balance.
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.
Yes, credit card balance transfer fees generally vary between 1% and 3% of the total amount transferred.
CIBC Select Visa* Card offers 0% interest with this balance transfer credit card for 10 months, with a 1% transfer fee.
No, financial institutions like TD and Scotia do not generally allow this type of credit card balance transfer.
No, balance transfers in themselves have no negative impact on your credit score.
No, it is important to check each welcome offer and the terms and conditions of each card before applying for one.
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.
No, credit card rewards generally apply only to new purchases and not to balance transfers or payments.
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.
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.
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