Canada’s best balance transfer credit cards 2021
These cards offer super low introductory rates for balance transfers.
These cards offer super low introductory rates for balance transfers.
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Are you working on a plan to become debt-free but are paying a lot of interest on purchases made on your existing high interest 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 these great balance transfer offers 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 standard 19.99%.)
Card | Balance transfer rate | Annual fee |
---|---|---|
CIBC Select Visa (get more details) |
|
$29 |
Scotiabank Value Visa (get more details) |
|
$29 |
BMO Preferred Rate (get more details)* |
|
$20 (waived 1st year) |
PC Financial World Elite (get more details)* |
|
$0 |
BMO Air Miles Mastercard (get more details)* |
|
$0 |
The CIBC Select Visa easily wins the title of best balance transfer credit card in Canada for its unbeatable promotional offer: New cardholders enjoy 0% interest rate for balance transfers for 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 13.9% kicks in, which is lower than the average credit card (19%). 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. Note that there is a 1% balance transfer fee (e.g. $10 on a $1,000 balance). It’s a flat-rate, one-time fee.
The offer is available exclusively to new cardholders when applying online, and you can only transfer up to 50% of your assigned credit limit.
When you sign up for Scotiabank’s Value Visa, you get a super-low interest rate at 0.99% for the first six months, which could save you a lot of money if you’re transferring from a high-interest card. 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 discounts at Avis Rent a Car. While the card does have an annual fee, it’s a modest $29. Plus, there’s no balance transfer fee to pay.
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 3.9% for nine months. Note that you’ll be charged a 1% fee on the amount you transfer over (for a balance transfer of $1,000 that works out to $10.) After the nine months are up, you’ll be charged 12.99% on any remaining balance. If you make any additional purchases during that nine-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 on shows in Los Vegas.
Get more details about the BMO Preferred Rate*
This card from PC Financial is best known for its Optimum points-earning potential at stores owned by Loblaws. You get 45 points per $1 at Shoppers Drug Mart; 30 points per $1 at PC banner retailers (Loblaws, No Frills, Real Canadian Superstore and PC Travel); and 10 points per $1 everywhere else. However, this card may also be beneficial if you’d like to transfer your balance from another card. The PC Financial World Elite has a promotional offer of 0.97% interest for the first six months. After the promotion ends, however, it climbs up to 22.97%, so be sure you can pay off your transferred balance within that time frame before you sign up. This balance transfer offer is available on all three PC Financial Mastercards.
Get more details about the PC Financial World Elite*
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 long. In addition to the introductory offer of 1.99% interest on balance transfers for the first nine months, you can collect Air Miles at an accelerated rate on your new purchases; 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 Air Miles, too.
This card comes with an 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 nine months, your interest rate will go up to 22.99%, which is a typical interest rate for most credit cards, and it may accumulate quickly if you still have a lot of debt to pay off.
Get more details about the BMO Air Miles Mastercard*
A balance transfer is the transfer of debt from one credit card to another. Although a cardholder can transfer their debt for any variety of reasons, the goal is usually to move the debt to a lower interest-rate card, 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.
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 way this works is that the lower interest rates mean 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 which measures the ratio between the balance and total credit limit. (Say you owe $600 on a credit card with a limit of $2,000. Then your credit utilization is 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 an application. When it comes to debt, always look for the longer term solution.
Credit Card | Annual Fee | Balance Transfer Offer | Transfer Fee | Interest Rate After Offer |
---|---|---|---|---|
Scotiabank Value Visa | $29 | 0.99% for 6 months | 0% | 12.99% |
BMO Preferred Rate | $20 | 3.99% for 9 months | 1% | 12.99% |
PC Financial World Elite Mastercard | $0 | 0.97% for 6 months | 0% | 22.97% |
BMO Air Miles | $0 | 1.99% for 9 months | 1% | 22.99% |
*Terms may vary by cardholder. Check with the provider for details.
For the best balance transfer credit cards 2021 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