Best Balance Transfer Credit Cards in Canada

Balance transfer credit cards are a great solution for people who want to consolidate their debt or pay off large credit card expenses without having to pay heavy interest and added charges for defaulting. These cards usually have extremely low-interest rates, which is convenient if you need to pay off a large amount. Some credit card companies even offer balance transfer cards with 0% interest rates for new customers. The introductory low-interest offer is only available for a limited period of time, which can be from 180 days, 10 months, 1 year, etc. You can pay back your debt in this period with low interest.

After the introductory period is complete, your balance transfer credit card will revert to regular interest rates. Banks and lending institutions offer this program to bring in new customers and hope you will continue to use the card even after your debt or bills are paid off. This card is easy to use. You just need to choose the right credit card for your requirements and submit the application. When your application is approved and you get the card, you can pay off your other cards and debts with your new balance transfer credit card.

The debt from your high-interest credit cards is cleared so you don’t have to pay more money to the credit card companies than you need to. Your monthly payments will go towards the principal debt amount rather than the accumulated interest. A balance transfer is the use of one credit card to pay off another credit card. The balance is shifted between cards; the new card takes the balance of the old card and the old card remains valid but with a zero balance. Benefits of Balance Transfer Credit Card The idea of getting another credit card might not appeal to most people, but this is a good solution to reduce the credit burden.

Top Balance Transfer Credit Cards in Canada

Switch balances over from higher-interest-rate credit cards to the No-Fee Scotiabank Value Visa Card. By consolidating your higher rate balances, you’ll save on interest and make paying bills easier.

Best Balance Transfer Credit Cards with 0% interest for 12 months

Most Popular
MBNA True Line Gold Mastercard®
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Specification: MBNA True Line Gold Mastercard®

Balance Transfer Promo Rate 0% for 6 Months
Annual Fees $39
Purchase Interest Rate 8.99%
Balance Transfer Regular Rate 8.99%
Cash Advance Rate 24.99%
Network

 

Best Balance Transfer Credit Cards with no annual fee

Most Popular
Tangerine Cash Back Credit Card
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Specification: Tangerine Cash Back Credit Card

Balance Transfer Promo Rate 1.95% for 6 Months
Annual Fees $0
Purchase Interest Rate 19.95%
Balance Transfer Regular Rate 19.95%
Cash Advance Rate 19.95%
Network
Get 2% back in up to 3 categories of your choice

No-Fee Scotiabank Value Visa Card

Switch balances over from higher-interest-rate credit cards to the No-Fee Scotiabank Value Visa Card. By consolidating your higher rate balances, you’ll save on interest and make paying bills easier.

  • Introductory 3.99% interest rate on Balance Transfers for the first six months†.
  • 99% after the introductory rate
  • Pay down balances faster
  • Simplify your monthly payments

American Express Preferred Credit Card

Most Popular
SimplyCashTM Preferred Card from American Express
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Specification: SimplyCashTM Preferred Card from American Express

Annual Fees $99
Purchase Interest Rate 19.99%
Balance Transfer Regular Rate 22.99%
Cash Advance Rate 24.99%
Network

The American Express Preferred Credit Card is truly a low-interest card that also has a 1.99% interest rate on balance transfers for 6 months. You will only be allowed to utilize 50% of your total credit limit as a balance transfer, which is ideal for maintaining a good credit score. The good news is that if you fail to pay off your entire balance in just 6 months, then the average interest rate that sets in later is only 8.99% on purchases, cash advanced, and transfers. There is significantly less pressure and stress for sure.

  • The additional good news is that the regular 3% balance transfer charge is completely lifted off for the preliminary 1.99% offer so there will not be any sudden surprises with this card.
  • This low-interest package is pretty hard to overlook since you get all the benefits with zero annual charge.
  • 95% Balance Transfer & Earn 2% Money-Back Rewards on purchases in two 2% Money-Back Categories of your choice, and 0.50% Money-Back Rewards on all other purchases.

Scotiabank Value Visa Card

Most Popular
Scotia Momentum®   Mastercard®* Credit Card
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Specification: Scotia Momentum® Mastercard®* Credit Card

Annual Fees $0
Purchase Interest Rate 19.99%
Balance Transfer Regular Rate 22.99%
Cash Advance Rate 22.99%
Network

The Scotiabank Value Visa Card is a balance transfer credit card that offers you a 0.99% interest rate on balance transfers for the initial 6 months. However, there is an annual charge of $29. The benefit of this card is that after the 6-months introductory period, the standard rate of interest would be 12.99% on your new purchases and transferred balances. It is recommended that you try paying off your balance throughout the promotional time period. If you fail to do so, the next best thing to do would be to transfer your balance to a different low balance transfer offer, one month before the promotional rate becomes invalid. That way, you will be guaranteed to go past even a low-interest rate of 12.99%.


MBNA True Line Mastercard

Most Popular
MBNA True Line® Mastercard®
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Specification: MBNA True Line® Mastercard®

Balance Transfer Promo Rate 0% for 12 Months
Annual Fees $0
Purchase Interest Rate 12.99%
Balance Transfer Regular Rate 12.99%
Cash Advance Rate 24.99%
Network

There are several distinct advantages of this program that can make getting a new credit card worth your while. Here are some of them.

  • Your debt will be easier to manage. Instead of keeping track of several credit card bills at once, you can focus on just one.
  • You can reduce the number of credit cards you have by clearing all debt and cancelling a few. For example, if you have five credit cards and you can make do with two or three, you can clear the bills from a few of them and then cancel them. This will also help you limit your expenses.
  • You could potentially save hundreds of dollars on interest rates if you pay off all your debt during the promotional period. For example, if you’re in a stable financial situation, you can transfer the debt to the balance transfer credit card and pay it off in a year.
  • You won’t have to look at alternative solutions to reduce your debt. For example, you won’t have to apply for debt assistance programs like a consumer proposal in order to pay off your debt. Such programs can have an impact on your credit score and limit your ability to borrow money in the future.

As you might have guessed, these credit cards are only suitable for people who are responsible with their money and use a credit card wisely. If you intend to pay all the monthly bills on time and keep your expenses in check, the balance transfer credit card is a great option for you.

The Idea behind Balance Transfer Credit Card

To attract new business, credit card issuers have designed a solution for customers with credit card debts by linking them up with another lender to make them switch over and use their credit cards. The credit card issuers provide a credit card with a promotional balance offer, which is available for a limited span of time. This enables customers to shift the balance over with the hope that they will be subscribers even when the offer period has expired. Mainly a person may consider a balance transfer if they have credit card debt on one card and there is a low-interest credit card rate (sometimes 0%) to transfer to another card. This low introductory interest rate is only valid for a short period (6 to 12 months). The idea is viable if you can pay down your debt within this short promotional period.

Factors to Consider Before Transferring Your Balance

  • Balance Transfer ChargesThe credit card issuer usually charges a balance transfer fee in the range of 1 to 5% of the amount your transfer offers. The switch could be worthless based on the interest rate offered on the new card.
  • Increased Interest after the Promotional Period ExpiryThe low-interest rate is valid only for a short period of time after which you will be required to pay a higher interest rate (could rise up to 19.99%). This is also the case if you miss any payments.If you purchase anything with the balance transfer credit card before paying off the original amount, these purchases will also attract interest. If you purchase anything with the balance transfer credit card before paying off the original amount, these purchases will also attract interest.

When and How You Can Use Balance Transfer Credit Card to Your Benefit?

When used in the right way, a balance transfer can be a perfect way to save thousands on the interest charges. For instance, if you make a major purchase and need some time to pay off, a low introductory interest rate can be a solution for you. However, the plan may not work to your benefit if you plan to keep the balance past the introductory period, or if you plan to make any purchases with the card. In such a case, you should stick to your old card or consider looking at low-interest credit cards. Balance transfer credit cards allow you to transfer your existing credit card balance onto a new card with low or 0% rates that run for a fixed period of time (6 to 20 months), after which the interest rates return to a higher percentage. In most cases, a balance transfer to a new card attracts a one-off transfer fee and a no annual fee credit card. You can use this plan if you want to consolidate your debts and avoid a high-interest rate. Apart from the 0% interest rate, balance transfer credit cards can help you to save a lot of money when paying your debt. You need to understand how balance transfer works to so as to lower your credit card interest payment. You also need to factor the various types of balance transfer card available in your market, the different balance transfer cards, and the mistakes to avoid when using balance transfer cards.

Applying For You Balance Transfer Credit Card

There are two ways through which you can apply for a new credit card;

  • Online application.
  • In-store application.

You will be required to fill in the details of your existing credit card debt and request the balance transfer to your new card. Your debt will automatically be shifted to the new card (a process that takes only a few days). For a successful application, you need to meet the eligibility requirements. Balance Transfer Fee: – This refers to a one-off fee paid to your new credit card issuer. It is mostly between 1 and 5% of the debt transferred to your new card. The balance transfer fee is mostly charged for a balance transfer with a longer promotional period. The Need To Contact Your Own Bank: – Once you have provided the details of your existing credit card during application, the new card issuer will handle the balance transfer without involving you directly. However, you may have to contact you old issuer if you wish to close the old card to avoid maintenance costs and annual fees where applicable.

How Does The New Card Issuer Gain?

You may wonder how your card issuer will gain when they charge 0% interest rate, but they stand to gain in the following two ways:

  • Higher Interest Rate– If you fail to pay your full debt within the promotional period, you will revert to a higher interest rate.
  • Gain New Clients– People are always unwilling to shift from one bank to the other and the cost of gaining new customers is always very high. Enticing people with discounted or 0% interest rate is a cost-effective way of winning new customers. To them, balance transfer credit cards is a cheap marketing strategy.

 

Low Balance Transfer Credit Cards can help Eliminate High-Interest Credit Card Debt

Transferring your balance to a credit card with a lower interest rate seems like a good strategy to save on high-interest rates. However, the question is “what are the best low balance transfer cards you can consider?” Banks and credit card issuers have long been using 0% balance credit cards as a marketing incentive to help customers get out of debt. A zero balance credit card is like having a bank lending you money for free. If you have a low balance credit card, you can transfer your debt from high-interest credit cards and pay interest rates of 0%-2.99% for at least 6 to 12 months. An important thing to note here is that average Canadian households have credit card debt in excess of $8,000. What’s worse is that most households are paying interest rates as high as 24% which comes down to at least an additional $2,000 per year. Only if these people switched to a zero balance transfer credit card, they could get rid of their credit card debt faster, and more importantly, save money in the long run. Recent trends suggest that more and more Canadians are now attracted to low balance transfer credit cards to eliminate credit card debt.

Benefits of a Balance Transfer Credit Cards Canada

Additional benefits are card-specific and depend on the one you get. Some of the benefits offered by different card providers include:

  • Cashback and rewards
  • Discounts on car rentals in Canada and overseas
  • Auto rental collision and loss damage insurance
  • Purchase protection
  • Extended warranty
  • Travel insurance
  • Access to dining and entertainment events
  • Round-the-clock customer service

You may save money by transferring your existing credit card debt to a balance transfer credit card if you plan your finances well. However, it is important that you compare your alternatives and look for offers before making a decision.

Transferring your balance to a credit card with a lower interest rate seems like a good strategy to save on high-interest rates. However, the question is “what are the best low balance transfer cards you can consider?” Banks and credit card issuers have long been using 0% balance credit cards as a marketing incentive to help customers get out of debt. A zero balance credit card is like having a bank lending you money for free. If you have a low balance credit card, you can transfer your debt from high-interest credit cards and pay interest rates of 0%-2.99% for at least 6 to 12 months. An important thing to note here is that average Canadian households have credit card debt in excess of $8,000. What’s worse is that most households are paying interest rates as high as 24% which comes down to at least an additional $2,000 per year. Only if these people switched to a zero balance transfer credit card, they could get rid of their credit card debt faster, and more importantly, save money in the long run. Recent trends suggest that more and more Canadians are now attracted to low balance transfer credit cards to eliminate credit card debt.

Compare Balance Transfer Credit Cards Canada

A Balance Transfer Credit Card isn’t for everyone so it’s important to assess your financial situation and your requirements carefully. Here are some things you should consider before you before you apply:

  • Financial Considerations –A balance transfer isn’t free of cost and you don’t get a low-interest credit card for all your purchases. You will have to pay balance transfer fees and regular interest rates on new purchases with the new card. You should also consider the standard interest rates applicable when the promotional period ends.
  • Balance Transfer Fees – These fees are typically 1% to 5% of the debt amount you transfer over to the new credit card. This varies from company to company so if you have a debt of $10,000 and the transfer fees are 5%, you will need to pay $500 for the transfer. Sometimes the combination of transfer fees and the interest rates can make this option unsuitable for some people.
  • Regular Purchases – If you use the balance transfer credit cards for new purchases, you will have to pay the standard interest rates. When you make your monthly payments, the money will pay off your low-interest debt rather than your high-interest debt so you will accumulate interest on your new purchases until your balance is completely paid off. That can prove to be expensive.

When you apply for a balance transfer credit card, look at the low-interest rates as well as the standard interest rates. Also, compare the promotional period and the annual fees of different cards. You should also compare the rewards programs to gain added benefit. These factors will help you choose the best card for your requirements.

How Should You Select a Low Balance Transfer Credit Card?

When you use a balance transfer credit card, you are basically paying off high-interest credit card debt with the new credit card. When shopping for the best low balance transfer credit cards, you should always look at three main features:

  • The interest rate you will pay
  • The time period for which you can enjoy the introductory rate
  • The balance transfer fee

Remember the last thing you want to do is pay a 3% transfer fee to enjoy a 0% introductory rate. Similarly, you should stay away from balance transfer credit cards that have really short promotional periods. After all, you need sufficient time to repay your debt before the regular interest rate comes into effect. Other factors that you must consider include:

  • The amount of credit card debt you want to transfer
  • Your monthly minimum payment
  • The card you will transfer your debt from. Remember, not all card issuers allow you to transfer debt from one credit card to another. You might find a great offer, but it is no use if your issuer doesn’t allow you to transfer the debt.

It is also recommended that you look at your credit history and score. In addition, you should also evaluate your income and debt ratio.

Balance Transfer Credit Cards with No Annual Fee

If you are struggling to pay high credit card fees and interests, you can lower your costs and reduce your repayment time and increase your saving with 0% balance transfer and $0 annual fee credit card. Our guide will help you compare options to take full control of your expenses.

Reward Programs Balance Transfer Credit Cards

You can take advantage of both the balance transfer and rewards card; a low or 0% interest rate to repay your debts. Once the debt is fully paid, you can start earning points on purchases made with your new card. You can use our guide to explore different options and factors before applying for your balance transfer credit card.

Balance Transfer with the Same Bank

It is not possible to do a balance transfer within the same banking institution. It is also not allowed to do a balance transfer to banks within the same group. Our list of banks which have locked balance transfer between each other will come in handy. Handy Tip: You can use the cash advance feature and pay-off the high-interest credit card from the same institution

Conclusion – Takeaway Thought

Before you start using a low balance transfer credit card, you should evaluate whether or not you’ll be able to pay off the debt before promotion or special rates expire. Most low balance cards have an introductory 0% rate for 6-12 months. Also, it’s important to have a backup plan if you are unable to repay the debt when the offer expires. Presently there are only two 0% balance transfer credit cards in Canada and 0% offer in the near future looks difficult to come by. However, there’s no need to worry about it. You can start with the MBNA card and use the 0% rate offer for 12 months. Right before your promotional period expires, you can move the balance to an Amex card. The bottom line is that owning a low balance transfer credit card could help you save money on your card debt. What’s better is that it can help you repay the high-interest credit card debt faster. Make sure you pay close attention to the balance transfer fee and other conditions before applying for a low balance transfer card.

You can compare all low balance transfer credit cards available in Canada and find the card that is worth applying for. In Canada, a 0% balance transfer credit card is rather difficult to find. As is evident, there are just two zero percent offers available in the entire country at the moment. Nevertheless, a zero percent balance transfer rate for a year is much better as compared to any conventional loan options. Even though you cannot transmit your balance from one TD/MBNA card to the next, however, you can choose to go with balance surfing from an MBNA to an Amex card, back to your MBNA card, to a Scotia card, and back to your MBNA card, and so on. You can also get more than one Platinum Plus credit card, for the purpose of cycling them in the 0% deal.

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