Canada’s best balance transfer credit cards 2022
These cards offer super low introductory rates for balance transfers.
These cards offer super low introductory rates for balance transfers.
Photo by tirachardz - from freepik.com
Are you working on a plan to become debt-free but also paying a lot of interest on purchases made with your high-interest credit card? A balance transfer credit card, which allows you to move the balance from your current cards over to a new card with a lower interest rate (some as low as 0%), can be a good strategy. Just keep in mind that the welcome offers on balance transfer cards are time-limited, and when that period ends—often after only six months—the rates go back up. (Note: The regular rate on some of these cards is still significantly lower than the typical 19.99%.)
Card | Balance transfer rate | Annual fee |
---|---|---|
MBNA True Line Mastercard (get more details)* |
|
$0 |
CIBC Select Visa
|
|
$29 |
Scotiabank Value Visa (get more details)* |
|
$29 |
BMO Preferred Rate (get more details)* |
|
$20 (waived 1st year) |
BMO Air Miles Mastercard (get more details)* |
|
$0 |
BMO Cash Back Mastercard (get more details)* |
|
$0 |
The MBNA True Line Mastercard commands no annual fee, and when you sign up and transfer your balance within 90 days, you’ll get a full year interest-free. While there is a balance transfer fee of 3%, the long grace period makes this a strong card for those who need to pay down debt. At the end of the promotional period, any remaining balance will be subject to the regular rate of 12.99%, which is still significantly lower than most regular cards. A solid promotion and no annual fee make the MBNA True Line Mastercard one of the best balance transfer credit cards around.
Get more details about the MBNA True Line Mastercard
The CIBC Select Visa easily wins the title of best balance transfer credit card in Canada for its unbeatable promotional offer: New cardholders enjoy a 0% interest rate for balance transfers for the first 10 months. This can be a great tool to consolidate and pay off debts with no interest. What about after the 10-month promotional period ends? This card’s regular interest rate of 13.99% kicks in—that’s lower than the average credit card (19.99%). So if you’re still paying off what you transferred, you can benefit from a lower interest rate. The $29 annual fee is rebated for the first year for you and three authorized users. Note: There is a 1% balance transfer fee (for example: $10 on a $1,000 balance). It’s a flat-rate, one-time fee.
The balance transfer offer is available exclusively to new cardholders when applying online, and you can only transfer up to 50% of your assigned credit limit.
Interest rates: purchases 13.99%, cash advances 13.99%, balance transfers 13.99%
When you sign up for Scotiabank’s Value Visa, you get a super-low interest rate of 0% on cash advances for the first six months. After the introductory period is over, your interest rate will increase to 12.99%, which is still lower than most cards. Plus, you can use your card to get car rental discounts at Avis. While the card does have an annual fee, it’s a modest $29. Plus, there’s no balance transfer fee to pay.
Get more details about the Scotiabank Value Visa*
This Mastercard comes with a low annual fee (which is refunded in the first year) and an appealing balance transfer welcome offer. The interest rate on your balance transfers is 0.99% for 9 months. However, you’ll be charged a 2% fee on the amount you transfer over (for a balance transfer of $1,000, that works out to $20). After the 9 months are up, you’ll be charged 12.99% on any remaining balance. If you make any additional purchases during that 9-month period, you will be charged 12.99% on new balances, if you don’t pay in full by the end of the grace period noted on each statement. Perks include extended warranty and purchase protection, plus a 15% discount on Cirque du Soleil shows in Canada and 20% off its shows in Las Vegas.
Get more details about the BMO Preferred Rate*
Even though this card has no annual fee, it comes with perks that may benefit you if you don’t think you’ll be carrying a debt for a long time. In addition to the introductory offer of 1.99% interest on balance transfers for the first 9 months, you can collect Air Miles at an accelerated rate on your new purchases, and you’ll get twice the miles when you shop at Air Miles partners, and 1 mile per $20 spent everywhere else. New cardholders receive 800 bonus miles, too.
This card comes with extended warranty and purchase protection and a discount on Cirque du Soleil shows. However, if you don’t pay off your balance within the first 9 months, your interest rate will go up to 22.99%, which is a typical interest rate for most credit cards. Interest may accumulate quickly if you still have a lot of debt to pay off.
Get more details about the BMO Air Miles Mastercard*
With no annual fee, a $15,000 annual income requirement and a promotional interest rate of 1.99% on balance transfers for your first 9 months (with a 1% transfer fee), the BMO CashBack is perfect if you’re in a low income bracket and want to get a handle on your credit card balance. This card can also put some of your everyday spending money back in your pocket: Get 5% cash back in your first 3 months. The regular rate is 3% on groceries and 1% on recurring bill payments (up to $500 spent per month in each category and an unlimited 0.5% on everything else). The card includes standard insurance coverage, like extended warranty and purchase protection, too.
Interest rates: purchases 19.99%, cash advances 22.99%, balance transfers 22.99%
Get more details about the BMO CashBack Mastercard*
A balance transfer is the transfer of debt from one credit card to another. Although a cardholder can transfer their debt for a variety of reasons, the goal is usually to cut down on the amount of interest charged and pay off the loan faster.
As most everyday-use credit cards command an interest rate of around 20%, your principal debt load can bloat quickly. By transferring debt to a card with a lower interest rate, you’ll incur lower interest charges—so more of your money goes to the principal balance.
Balance transfers can be an effective way to consolidate and address debt. But before you jump in, there are seven main variables you need to understand.
Like cash advances or purchases of money orders, balance transfers are not considered to be purchases, so in general, they’re not eligible for cash back rewards. There may be some rare exceptions with certain promotional offers, but these are few and far between. That said, the interest saved by moving your debt to a card with a lower interest rate will far outweigh the value of most cash back returns.
When you apply for any credit card, you receive a hard credit inquiry that can temporarily bring your credit score down a few points. This includes balance transfer cards. However, this is not a reason to avoid applying.
If you’re looking into a balance transfer credit card, it’s likely because you’ve got some outstanding credit card debt. Moving that debt in order to reduce it will have a positive, lasting impact on your credit score in the medium to long term.
The lower interest rate means more of your money goes to paying down the balance, so you can reduce your debt load faster. A smaller debt load can improve your credit score because it lowers your credit utilization—a major credit score factor that measures the ratio between the balance and the total credit limit. (Say you owe $600 on a credit card with a limit of $2,000. Your credit utilization would be 30%. Having a credit utilization score of 30% or lower is considered good.)
When you consider everything, the damage your debt load does to your credit score far outweighs the small and temporary effect on your credit score caused by a credit card application. When it comes to debt, always look for the longer-term solution.
For the best balance transfer credit cards 2022 ranking, we categorized credit cards based on their limited-time balance transfer rates. Our rankings also took into account fixed annual interest rates on balance transfers and purchases, purchase protections and annual fees.
‡MoneySense.ca and Ratehub.ca are both owned by parent company Ratehub Inc. We may be partnered with some financial institutions, but this does not influence the “Canada’s Best Credit Card” rankings. You can read more about this in our Editorial Code of Conduct.
If a link has an asterisk (*) at the end of it, that means it's an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. It's important to note that our editorial content will never be impacted by these links. We are committed to looking at all available products in the market, and where a product ranks in our article or whether or not it's included in the first place is never driven by compensation. For more details read our MoneySense Monetization policy.
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While I appreciate this article and the idea of doing a balance transfer, I have found that, thanks to my current debt load and its affect on my credit rating, I have now been turned down for three credit cards. Even if I explain that I’m looking to transfer balances from a high interest credit card and I intend to cancel the other card, I still get a resounding NO.
just want a cash back credit card from bank that know my name,,address,income
They keep denying me one.
in the meantime i was approved gby Sapitol one and Canadian tire gas advantage but I would like to just havvve one card.
I would likek to get it transfer my credit cards to theirs,
maybe my husbnd s online credit hs brought my score down.
can you help
I recently transferred significant sum to my CIBC Visa card to take advantage of the free 10 month interest. Unfortunately I accidentally chose a wrong (similar) name on the drop down list for the Mastercard I was transferring from. When the payment never showed up on the other card I phoned Visa who it turns out, sent the funds to the wrong Mastercard company.
Now comes the crazy part:
The Visa manager said there was no quick way to get the funds back and that they would send the wrong company “an email” and hopefully in FIVE or SIX weeks! I might get the money sent to the correct Mastercard. Meanwhile, of course, they have added the debit to my Visa and I am still paying interest on the correct Mastercard. My emails to CIBC have gone unanswered so I guess I am stuck!
To date CIBC has been excellent so I am bewildered by this treatment. Yes I made a simple name selection mistake but surely they must have some way of double checking whether I even have a credit card with this other company (which I don’t).
And their lack of an urgent follow-up is bewildering!?!?