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 | Offer | Annual fee |
| CIBC Select Visa* Card | 0% for 10 months on balance transfers | $29 ($0 for the first year) |
| MBNA True Line® Mastercard® (Non-Quebec Residents) |
0% for 12 months on balance transfers | $0 |
| Scotia Momentum® No-Fee VISA* Card |
0% for 6 months on balance transfers | $0 |
| BMO® Preferred Rate Mastercard®* | 0.99% for 9 months on balance transfers | $20 ($0 the first year) |
| Scotiabank® Value VISA Card | 0% for 6 months on cash advances | $29 ($0 for the first year) |
| Tangerine Money-Back Credit Card | 1.95% for 6 months on balance transfers | $0 |
| Scotia Momentum® VISA* Card |
0% for 6 months on balance transfers | $39 |
For more details, read on or click on the name of a card.
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 CIBC Credit Card with a balance transfer option, you earn 0% interest on balance transfers for up to 10 months. 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.
CIBC Select Visa* Card users can also save on gas through the card’s partnership with Journie Rewards, which allows them to save up to 10 cents per litre at participating gas stations.
The CIBC Select Visa* Card has an annual fee of $29, which is waived in the first year, and requires an annual household 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 the best balance transfer Mastercard credit cards in Canada.
With this Card, you get 0% interest on balance transfers for your first 12 months. And you have fraud protection at all times.
Best BMO Balance Transfer Credit Card
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
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.
Through May 2, 2023, you can earn an additional 10% 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 your first 30 days, transfer balances and pay only 1.95% interest on the transferred balance for the first 6 months.
Best Scotia Balance Transfer Credit Card
Scotia Momentum<sup>®</sup> 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.
Scotiabank® Value VISA Card
The Scotiabank Value® Visa* Card is one of the best credit cards for cash advances in Canada.
You can get a 0% introductory interest rate on cash advances for the first six months. And you pay no annual fee for the first year with this Visa credit card.
In addition, this Visa credit card offers a low-interest rate of 12.99% on purchases and cash advances.
Scotia Momentum<sup>®</sup> 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.
Plus, you can get a 0% introductory rate on balance transfers for the first six months.
Pros and Cons of credit card balance transfers
Pros of credit card balance transfers
The pros of a credit card balance transfer are:
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Lower interest costs: By transferring your balance to a lower-rate card, you can reduce your interest costs and pay off your debt faster.
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Flexibility: a balance transfer allows you to move your debt to a card that suits your needs and budget better.
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Additional benefits: Some cards offer benefits for balance transfers, such as loyalty points or free insurance.
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Ability to consolidate multiple debts: If you have numerous credit cards with different balances, a balance transfer allows you to consolidate all these debts onto one card.
Cons of credit card balance transfers
There are several potential drawbacks to making a credit card balance transfer:
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Balance transfer fees may apply, increasing the total cost of your debt.
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Your interest rate may increase after the balance transfer, which may cost you more in the long run.
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A balance transfer can affect your credit score in two ways: first, taking out an additional line of credit can temporarily lower your credit score. Secondly, if you cannot pay off your debt quickly, it can negatively impact your credit score.
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A balance transfer may encourage you to spend more than you should because you can pay off your debt at a relatively low-interest rate. However, if you can’t pay off your debt before the interest rate goes back up, you could end up with even more debt.
Frequently Asked Questions about Credit Card Balance Transfers
Here are frequently asked questions in the milesopedia community 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:
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.