Best Balance Transfer Credit Cards in Canada for 2024

Are you struggling with high-interest debt? Balance transfer credit cards offer a smart solution by letting you transfer existing high-interest balances from one card to another, often with a promotional low or 0% interest rate. This can help you pay off debt faster and save significantly on interest charges. In this guide, we’ll explore the best balance transfer credit cards in Canada for 2024, helping you find the perfect option to consolidate and reduce your debt.

Top 10 Balance Transfer Credit Cards in Canada (2024)

Here’s a quick look at the top balance transfer credit cards available in Canada:

1. MBNA True Line Mastercard – 0% interest for 12 months.
2. Scotiabank Value Visa Card – 0% interest for 6 months on balance transfers.
3. BMO Air Miles Mastercard – Best for Air Miles with low-interest balance transfer.
4. CIBC Select Visa Card – 0% for 10 months with a low annual fee.
5. RBC Visa Classic Low Rate Option – Low ongoing interest rates.
6. Tangerine Money-Back Credit Card – Flexible categories with balance transfer benefits.
7. HSBC +Rewards Mastercard – Great for rewards with balance transfers.
8. American Express Essential Credit Card – Low interest with no annual fee.
9. National Bank Syncro Mastercard – Adjustable interest rates and low transfer fees.
10. Simplii Financial Cash Back Visa – No annual fee and solid balance transfer option.

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What is a Balance Transfer Credit Card?

A balance transfer credit card allows you to transfer high-interest debt from another credit card to a new one, usually at a lower or 0% interest rate for a promotional period. This is an effective way to consolidate debt and reduce interest costs. By transferring a balance, you can focus on paying down your principal without accruing as much interest during the promotional period.

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How Do Balance Transfer Credit Cards Work?

When you open a balance transfer credit card, you can move an existing credit card balance onto the new card. These cards typically offer a promotional interest rate (often as low as 0%) for a specified period, such as 6 to 12 months. During this time, you can work on paying off the balance without incurring significant interest charges. However, after the promotional period, the interest rate usually increases to the card’s standard APR, so it’s important to aim to pay off the transferred amount before this period ends.

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How to Choose the Best Balance Transfer Credit Card

Here are key factors to consider when choosing a balance transfer credit card:

1. Promotional Interest Rate: Look for a card offering 0% interest or the lowest possible rate on transferred balances.
2. Duration of Promotional Period: The longer the promotional period (e.g., 6, 10, or 12 months), the more time you’ll have to pay off your balance without accumulating interest.
3. Balance Transfer Fees: Some cards charge a fee for balance transfers, typically 1% to 3% of the transferred amount. Opt for a card with low or no fees.
4. Post-Promotional Interest Rate: After the introductory period, the interest rate will rise to the card’s standard APR, which can be high. Make sure you can pay off the balance before this happens.
5. Annual Fee: Some balance transfer cards have annual fees, but many do not. Consider whether the fee is justified by the card’s benefits.
6. Credit Score Requirements: Most balance transfer credit cards require a good to excellent credit score (660 and above) to qualify.

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Top Balance Transfer Credit Cards in Canada: Detailed Overview

1. MBNA True Line Mastercard

• Promotional Rate: 0% for 12 months.
• Transfer Fee: 3% of the balance amount.
• Post-Promotional Rate: 12.99% on purchases and balance transfers.
• Annual Fee: $0.
• Why It’s Best: With its 0% interest rate for 12 months, the MBNA True Line Mastercard is perfect for paying down large balances without worrying about accumulating interest. After the promotional period, the low standard APR is ideal for ongoing purchases.

2. Scotiabank Value Visa Card

• Promotional Rate: 0% for 6 months.
• Transfer Fee: 3% of the balance amount.
• Post-Promotional Rate: 12.99% APR.
• Annual Fee: $29.
• Why It’s Best: This card offers a solid 0% promotional rate and a low ongoing interest rate. It’s great for those who need a shorter-term solution with low fees.

3. BMO Air Miles Mastercard

• Promotional Rate: 1.99% for 9 months.
• Transfer Fee: 1%.
• Post-Promotional Rate: 19.99% APR.
• Annual Fee: $0.
• Why It’s Best: While not offering a 0% transfer rate, the low fee and rewards program make this a good option for those who want to earn Air Miles while consolidating debt.

4. CIBC Select Visa Card

• Promotional Rate: 0% for 10 months.
• Transfer Fee: 1% of the transferred amount.
• Post-Promotional Rate: 13.99% APR.
• Annual Fee: $29 (waived first year).
• Why It’s Best: The CIBC Select Visa offers a great balance between promotional interest rates and ongoing fees. It’s a strong choice for those who need more than 6 months to pay down debt.

5. RBC Visa Classic Low Rate Option

• Promotional Rate: No promotional rate, but ongoing low interest rate.
• Post-Promotional Rate: 11.99% APR.
• Annual Fee: $20.
• Why It’s Best: For those who want a consistent low-interest rate without promotional periods, the RBC Visa Classic is a great option. This card is ideal for those who want a simple, straightforward solution.

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How to Apply for a Balance Transfer Credit Card

Applying for a balance transfer credit card is simple. Here’s how to get started:

1. Compare Cards: Review the promotional rates, balance transfer fees, and terms offered by various cards. Choose one that offers the longest 0% period and minimal fees.
2. Check Your Credit Score: Most cards require a good to excellent credit score. Check your credit report to ensure you meet the eligibility requirements.
3. Submit Your Application: You can apply online, over the phone, or in person. Be prepared to provide financial details like your income, debt levels, and personal information.
4. Initiate the Balance Transfer: Once approved, you can request the balance transfer by providing the account details of the card you want to transfer debt from. Some issuers may charge a transfer fee upfront, so ensure you understand the terms.

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FAQs About Balance Transfer Credit Cards

1. What is a balance transfer credit card?
A balance transfer credit card allows you to move existing high-interest debt to a new card, usually at a lower interest rate. This can save you money on interest and help you pay down debt faster.

2. How much can I transfer to a balance transfer card?
The amount you can transfer depends on your credit limit. Typically, you can transfer up to 80-100% of your available credit.

3. Do balance transfer cards hurt your credit score?
Applying for a balance transfer card can result in a hard inquiry, which may temporarily lower your score. However, responsibly managing your credit and paying off your balance can improve your credit score over time.

4. Can I transfer a balance between cards from the same bank?
Most banks do not allow you to transfer balances between cards issued by the same institution. You’ll need to transfer to a card from a different bank or issuer.

5. What happens if I don’t pay off my balance before the promotional period ends?
If you don’t pay off your balance before the promotional period ends, any remaining balance will be subject to the card’s standard APR, which could be significantly higher.

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Conclusion

Choosing the best balance transfer credit card in Canada can help you manage debt, reduce interest costs, and simplify your finances. Whether you’re looking for a 0% introductory rate like the MBNA True Line Mastercard or a more rewards-focused option like the BMO Air Miles Mastercard, these cards offer great value for Canadians looking to consolidate and pay off debt efficiently.