The best Balance Transfer Credit Cards in Canada offer amazing and fantastic benefits to cardholders, not only to help you save on interest charges but also to consolidate your debts and pay off large credit card balances. A massive pile of credit card expenses has plunged some Canadians into unimaginable and unintended debts.
Perhaps you’ve been making consistent payments to clear your credit card balances, but there seems to be no end. One of the problems might be the high interest rates on your credit card. Thus to get off your debts quickly, you need a balance transfer credit card.
What is a Balance Transfer?
Balance transfer credit cards ensure the reduction, consolidation, or outright payments of your debts by offering extremely low-interest rates, and sometimes zero-interest offers.
A balance transfer involves shifting your debts from a high interest rate credit card to a new credit card with an extremely low interest rate for a limited period. When you move your debts to a low-interest or an interest-free credit card, you can save your money (which would have been used on interest charges) towards paying off the principal balance.
How It Works
If you are paying a high interest rate on your credit card balance or carrying a balance on multiple credit cards, a balance transfer credit card could be the best solution.
Balance transfer interest-free or low-interest offers are provided by credit card issuers for a limited time, usually between 3 months and 12 months. The aim is to assist cardholders with high interest rate charges to use the ‘grace period’ in paying off their debts.
Although many Canadians transfer their credit card balance for several reasons, the goal is to move or transfer the debt to a low-interest credit card and pay off or down the debts as fast as possible before the expiration of the promotional offer.
At the end of the low-interest bonus offer on the balance transfer card, the regular interest rate will apply on the credit card, which is about 20 percent (20%). Hence, it is advisable to take advantage of the low-interest promotional offer to pay off or down your credit card debts, and save hundreds of Canadian dollars on interest charges.
Best Balance Transfer Credit Cards
Here are some of the best balance transfer credit cards in Canada with extremely low-interest and zero-interest promotional rates.
1. MBNA True Line MasterCard
The Toronto-dominion bank issues the MBNA True Line MasterCard. This credit card offers a promotional balance transfer rate of 0% (zero interest rate) for the first 10 months. The total balance transfer value must be within the authorized credit card limit to enjoy this offer.
This promotional balance transfer offer of 0% applies to any balance transfer made within 90 days of account opening and will last for 10 months only. Thus, cardholders can use this promotional period to save on interest charges and have enough funds to pay off the principal debt. Features of the MBNA True Line MasterCard include:
- Balance transfer promotional rate: 0.00% (zero interest rate) for 10 months
- Annual fee: $0 (No Annual Fee)
- Standard / post-promotional low annual interest rate on balance transfer and access cheques: 12.99%
- The annual interest rate on purchases: 12.99%
- The annual interest rate on cash advances: 24.99%
- Balance transfer transaction fee: 3% of the transferred amount or a minimum charge of $7.50 on each balance transfer transaction
- This balance transfer credit card cannot be used to pay off or down your account balance with MBNA or the TD Bank Group.
Eligibility: This credit card is available to Canadian residents of the age of majority in their province or territory of residence.
2. MBNA True Line Gold MasterCard
The TD Bank also issues the True Line Gold MasterCard. This credit card is suitable for a balance transfer, as it offers a 0% (zero interest rate) promotional balance transfer rate for the first 6 months. This promotional offer is valid for transfers completed within 90 days of account opening.
The low-interest rate and low annual fee credit card enables you to save on interest charges, and consequently pay off or down your balance or debts with the use of the welcome bonus offer to transfer a balance from a higher interest card. Features of this credit card include:
- Promotional balance transfer rate: 0% (zero interest rate) for the 6 months
- Low annual fee: $39
- Low standard/post-promotional annual interest rate on balance transfers: 8.99%
- The annual interest rate on purchases: 8.99%
- The annual interest rate on cash advances: 24.99%
- Balance transfer transaction fee: 3% of the transferred amount or a minimum charge of $7.50 on each transaction
Eligibility: This credit card is available to Canadian residents who are of the age of majority in their province or territory of residence.
3. Scotiabank Value Visa Card
Issued by Scotiabank, the Value Visa card has a promotional balance transfer rate of 0.99% for the first 6 months after account opening. With this low-interest introductory offer, you can save hundreds of Canadian dollars towards the consolidation and payment of your high interest rate balances.
When you transfer your higher rate credit card balances to the Scotiabank Value Visa card, you also stand a chance to enjoy a meager annual fee on the card. Features of this card include:
- Promotional balance transfer interest rate: 0.99% for the first 6 months
- Low annual fee: $29
- Preferred/ post-promotional annual interest rate on balance transfer and scotia credit card cheques: 12.99%
- The annual interest rate on purchases: 12.99%
- Promotional balance transfer transaction fee: 0% of the amount of each transaction
- Minimum credit limit: $500
- This promotional offer cannot be used to transfer a balance from another Scotiabank account.
Eligibility: The Scotiabank value visa credit card is available to Canadian residents who are of the age of majority in their province or territory of residence.
4. President’s Choice Financial MasterCard
This credit card is provided by the President’s Choice Bank to provide a balance transfer promotional offer.
Apart from earning PC Optimum points on shopping, the no-fee PC financial MasterCard, along with PC Financial World MasterCard and PC Financial World Elite MasterCard, offers a 0.97% promotional balance transfer rate for 6 months, on balance transfers made within 90 days of account approval. Features of this credit card include:
- Promotional balance transfer interest rate: 0.97% for the first 6 months
- Annual fee: $0 (zero interest rate)
- Balance transfer transaction fee: 1% of the transferred amount applicable on balance transfers made after the promo period
- The standard annual interest rate on balance transfer and cash advances: 22.97%
- The annual interest rate on purchases: 20.97%
Eligibility: This credit card is available to Canadian residents who are of the age of majority in their province or territory of residence.
5. Tangerine Money-Back Credit Card
The Tangerine Money-Back MasterCard gives you a balance transfer interest rate promotional offer of 1.95% for the first 6 months when you transfer within your first 30 days of account opening. Apart from this offer, this credit card allows you to earn unlimited money-back rewards on everyday purchases, even with no annual fee. Features of this credit card include:
- Promotional balance transfer interest rate: 1.95% for the first 6 months
- Annual fee: $0 ( No annual fee)
- Standard or post-promotional annual interest rate on balance transfer: 19.95%
- The annual interest rate on purchases: 19.95%
- Balance transfer transaction fee: 3% of the transferred amount or minimum of $5.00
- The annual interest rate on cash advances: 19.95%
Eligibility: This credit card is available to Canadian residents who are of the age of majority in their province or territory of residence. Social Insurance Number (SIN) and employment information are required.
6. BMO Air Miles MasterCard
This travel rewards credit card gives you a 1.99% introductory interest rate on balance transfers for 9 months. The no annual fee Air Miles MasterCard also offers a welcome bonus of 800 Air Miles Bonus Miles. Features of this credit card include:
- Promotional balance transfer interest rate: 1.99% for 9 months
- Balance transfer transaction fee: 1% of the transferred amount
- Annual fee: $0 (no annual fee)
- Standard/post-promotional interest rate on balance transfer: 22.99%
- The annual interest rate on purchases: 19.99%
- The annual interest rate on cash advances: 22.99%
- Get 2x the Miles for every $20 spent at participating Air Miles partners.
- Balance transfers from other BMO credit card accounts are not eligible.
Eligibility: The BMO Air Miles MasterCard is available to Canadian residents who are of the age of majority in their province or territory of residence, and who have not declared bankruptcy in the last 7 years.
Other notable low-interest balance transfer credit cards worthy of mention are:
- Best Western Rewards MasterCard: 1.99% for 10 months
- American Express Essential Credit Card: 1.99% for 6 months
- PC Financial World MasterCard: 0.97% for 6 months
- PC Financial World Elite MasterCard: 0.97% for 6 months
- Tangerine World MasterCard: 1.95% for 6 months
- BMO Cash Back MasterCard: 1.99% for 9 months
- Harley-Davidson MasterCard: 1.99% for 10 months
- Scotia Momentum Visa Card: 2.99%
Conclusion
If you are able to pay off your credit card debts faster, a balance transfer credit card can significantly improve your credit ratings and plunge into financial freedom. Check out the top balance transfer credit cards with low-interest charges, as well as tips to help you decide on the best choice of a balance transfer that suits your financial needs.
