Canada’s best balance transfer credit cards 2022

For those who carry a steadiness on an everyday bank card, chances are high you’re paying round 20% in curiosity. At that fee, it may possibly turn into troublesome to maintain up with the funds and your debt can spike—quick. Shifting your bank card debt to a steadiness switch bank card may also help you repay the principal extra rapidly by supplying you with entry to a decrease common rate of interest. Many steadiness switch playing cards supply a welcome bonus with an extra-low (and generally 0%) fee for a restricted time. Take a look at our picks for the perfect steadiness switch bank cards in Canada.

At a look: With an everyday rate of interest of 12.99% and a 0% steadiness switch fee for a full yr, the MBNA True Line Mastercard affords a whole lot of runway to deliver down your debt. This card doesn’t cost an annual payment, each for you and as much as 9 further customers.

• Annual payment: $0
• Rates of interest: 12.99% on purchases, 24.99% on money advances, 12.99% on steadiness transfers
• Steadiness switch supply: Get a 0% promotional annual rate of interest (“AIR”) for 12 months on steadiness transfers throughout the first 90 days of opening the account.

Execs 

• Pay for purchases of greater than $100 in month-to-month installments utilizing the MBNA month-to-month fee plan.
• Get 10% off the bottom charges for Price range and Avis automotive leases in Canada, and 5% off the bottom charges once you lease internationally.
• Add as much as 9 further customers without spending a dime. 

Cons 

• Regardless that the steadiness switch rate of interest is 0% for 12 months, there’s a steadiness switch payment of three%, which means that you simply pay $30 for each $1,000 transferred. 
• Card doesn’t embrace insurance coverage or different perks.

CIBC Choose Visa Card

At a look: The CIBC Choose Visa Card affords a beautiful 13.99% rate of interest, even on money advances, and it has a 10-month steadiness switch supply of 0% curiosity and a low 1% steadiness switch payment. A handful of different perks, like frequent service accident insurance coverage and reductions on fuel, spherical out the package deal.

• Annual payment: $29 (rebated for the primary yr)
• Rates of interest: 13.99% on purchases, 13.99% on money advances, 13.99% on steadiness transfers
• Steadiness switch supply: Get 0% curiosity for as much as 10 months with a 1% switch payment. For the primary yr, you may additionally get an annual payment rebate.

Execs 

• While you hyperlink this card with Journie Rewards, it can save you as much as $0.10 per litre on fuel at collaborating Pioneer, Fas Fuel, Ultramar and Chevron fuel stations.
• Switch cash internationally with CIBC International Cash Switch and pay no switch charges. 
• Consists of $100,000 of frequent service accident insurance coverage.
• Rise up to a few further playing cards without spending a dime.

Cons 

• The included journey insurance coverage is incomplete, so you will have to purchase further protection.

At a look: For these already banking with Scotiabank, the Scotiabank Worth Visa affords an attractive steadiness switch possibility. The annual payment is a manageable $29, and it’s waived for the primary yr and waived altogether for individuals who have the Most well-liked or Final banking package deal. The 12.99% rate of interest is among the many lowest round, making it appropriate for consolidating your debt. 

• Annual payment: $29 (waived for the primary yr)
• Rates of interest: 12.99% on purchases, 12.99% on money advances, 12.99% on steadiness transfers
• Steadiness switch supply: Get 0% curiosity on money advances for the primary six months, plus no annual payment for the primary yr. Provide ends April 30, 2023.
• Further advantages: Get a 25% low cost on rental vehicles at collaborating Avis areas

Execs 

• Repay purchases of $100 or extra with no-interest month-to-month installments, together with a low installment payment (varies by plan), as a part of the Scotia SelectPay program.
• Get a 25% low cost on rental vehicles at collaborating Avis areas.
• Don’t pay the annual payment in case you have a Most well-liked or Final banking package deal with Scotiabank.
• Supplementary cardholders are free, so your folks or household may also benefit from a low rate of interest.

Cons 

• You may’t earn money again or rewards with this card.
• There may be little in the way in which of extras.

At a look: BMO’s Most well-liked Fee Mastercard comes with a low common rate of interest of 12.99% and an annual payment of solely $20, which is waived for the primary yr—and waived yearly for cardholders with a BMO Efficiency chequing account. The steadiness switch supply isn’t as robust as others on this record, however can nonetheless prevent cash in comparison with an everyday card. Circus followers will love the reductions at Cirque du Soleil.

• Annual payment: $20 (refunded within the first yr)
• Welcome supply: Earn a 0.99% introductory rate of interest on steadiness transfers with a 2% switch payment for the primary 9 months.
• Rates of interest: 12.99% on purchases, 15.99% on money advances, 12.99% on steadiness transfers
• Steadiness switch supply: 0.99% introductory rate of interest on steadiness transfers within the first 9 months; 2% switch payment
• Further advantages: Prolonged guarantee, buy safety, and Zero Legal responsibility safety; reductions on Cirque du Soleil admission

Execs 

• The $20 annual payment is tremendous inexpensive and is waived for the primary yr. You probably have a BMO Efficiency chequing account, it’s waived yearly. 
• Cardholders should buy discounted Cirque du Soleil tickets.
• Add one further cardholder without spending a dime. 

Cons 

• Doesn’t embrace journey insurance coverage.
• You may’t earn rewards or money again.
• The steadiness switch supply isn’t as robust as some others out there.

At a look: With no annual payment, an accessible $15,000 annual earnings requirement and a promotional rate of interest of 0.99% on steadiness transfers on your first 9 months, the BMO CashBack is ideal should you’re in a low earnings bracket and wish to get a deal with in your bank card steadiness. This card may even put some a reimbursement in your pocket.

• Annual payment: $0
• Welcome supply: Get 1,500 bonus Air Miles ($150 worth) and a 0.99% introductory rate of interest on steadiness transfers for the primary 9 months (a 2% switch payment applies).
• Rates of interest: 20.99% on purchases, 22.99% on money advances (21.99% for Quebec residents) and 22.99% on steadiness transfers 
• Steadiness switch supply: 0.99% curiosity on steadiness transfers on your first 9 months; 2% switch payment
• Further advantages: Members obtain 25% off Nationwide and Alamo automotive leases; get a reduction of 15% off admission to Cirque du Soleil reveals touring Canada and 20% off resident reveals in Las Vegas; contains Zero Legal responsibility safety and MasterCard Identification examine for on-line purchases

Execs 

• The common money again fee on groceries is 3%, which is the best in Canada for a no-fee card. Recurring invoice funds earn at 1% money again, and the bottom earn fee is 0.5%.
• Use your money again as a press release credit score, or a deposit into your BMO chequing, financial savings or InvestorLine account, and rewards by no means expire.
• Add a second cardholder without spending a dime.

Cons 

• There’s a steadiness switch payment of two%, which means that for each $1,000 transferred, you’ll pay a one-time payment of $20.
• This card doesn’t include a lot in the way in which of extras or perks.

What’s a steadiness switch?

A steadiness switch is the switch of debt from one bank card to a different. Though a cardholder can switch their debt for a wide range of causes, the aim is often to chop down on the quantity of curiosity charged and to repay the mortgage sooner.

As most everyday-use bank cards command an rate of interest of round 20%, your principal debt load can bloat rapidly. By transferring debt to a card with a decrease rate of interest, you’ll incur decrease curiosity prices—so extra of your cash goes to the principal steadiness.

Essential issues to find out about steadiness switch bank cards

Steadiness transfers may be an efficient technique to consolidate and deal with debt. There are seven issues to contemplate earlier than you apply for a steadiness switch card.

1. Store round for the speed, timing and phrases that go well with you finest
   For those who’re attempting to remove bank card debt, your finest wager is perhaps a steadiness switch bank card. These playing cards include promotions that allow cardholders pay very low curiosity (generally as little as 0%) for a restricted time (like six or 10 months). These affords is usually a actually efficient technique to deliver down your debt quick, if you’re disciplined about making common funds and aren’t racking up a whole lot of new purchases. The cardboard you select will rely largely on what’s out there once you’re trying, how lengthy you suppose you’ll must repay your debt, and the cardboard’s different phrases.
2. Be sure you’re eligible for the steadiness switch
   Steadiness switch promotions are solely legitimate when shifting debt from a bank card at one financial institution to a card at one other financial institution. It is not going to work between two playing cards from the identical financial institution. 
3. Timing is every part
   Steadiness switch promotions can be found on the time that you simply make your utility or generally shortly thereafter. Be strategic about once you apply, and ensure you’re ready to make the switch. Which means having the bank card firm title, your title because it seems on the cardboard, the debt complete and the bank card quantity.
4. Do not forget that steadiness switch promotions don’t final without end
   The low, single-digit charges out there on steadiness switch bank cards are limited-time affords. As soon as the promotional interval is over, the playing cards’ common rates of interest will kick in, which can have an effect on your month-to-month funds. The way you deal with this may rely on the quantity of debt you have got and the way rapidly you propose to pay it off. However, normally, the perfect methods embrace paying off the steadiness earlier than the steadiness switch supply ends and choosing a card with a low common rate of interest. This manner, you’ll lower your expenses on curiosity even should you nonetheless owe after the supply interval.
5. Make your minimal funds
   Even when benefiting from a steadiness switch supply, you have to make at the very least the minimal fee on the cardboard, on time, every month. For those who don’t, that super-low promotional rate of interest can rapidly be discontinued and the usual rate of interest will kick in virtually instantly. In different phrases, solely benefit from a steadiness switch supply in case you have the money available to make at the very least the minimal fee every month and also you’re in the appropriate monetary mindset to tackle debt compensation.
6. Steadiness switch charges
   Some—however not all—playing cards cost a payment for steadiness transfers. This payment is expressed as a share of the overall quantity you wish to transfer, and it often ranges from 1% to three%. So, for instance, should you’re seeking to switch $1,000 in debt to a card with a 3% payment, your opening steadiness will probably be $1,030. The extra price might be definitely worth the cash you’ll save on the new decrease rate of interest. However hold your eyes open for payment offers: Sometimes, a card will run a promotion the place the steadiness switch payment is waived.
7. Separate your bills
   For those who cost a brand new buy to your steadiness switch card, this spend will probably be charged on the card’s common rate of interest should you don’t pay on time, not the promotional fee that’s utilized to the steadiness you’ve transferred. This may not look like an enormous deal, particularly should you’ve been fortunate sufficient to discover a card with a decrease common fee, however there’s a further catch: Most bank cards apply funds to debt marked on the low or promotional fee first, which suggests your high-interest purchases are sitting there longer, racking up curiosity. For those who’re attempting to pay down debt, this solely compounds the issue. It’s good follow to go away your steadiness switch card at house and use a special monetary product (like debit, money or perhaps a totally different bank card) for brand new purchases. 

Do you earn money again on steadiness transfers?

Like money advances or purchases of cash orders, steadiness transfers aren’t thought-about to be purchases, so normally, they’re not eligible for money again rewards. There could also be some uncommon exceptions with sure promotional affords, however these are few and much between. That stated, the curiosity saved by shifting your debt to a card with a decrease rate of interest will far outweigh the worth of most money again returns.

How does a steadiness switch bank card influence my credit score rating?

While you apply for any bank card, you obtain a tough credit score inquiry that may quickly deliver your credit score rating down a number of factors. This contains steadiness switch playing cards. Nonetheless, this isn’t a cause to keep away from making use of. 

For those who’re trying right into a steadiness switch bank card, it’s doubtless since you’ve acquired some excellent bank card debt. Shifting that debt to be able to scale back it is going to have a optimistic, lasting influence in your credit score rating within the medium to long run. 

The decrease rate of interest means extra of your cash goes to paying down the steadiness, so you’ll be able to scale back your debt load sooner. A smaller debt load can enhance your credit score rating as a result of it lowers your credit score utilization—a serious credit score rating issue that measures the ratio between the steadiness and the overall credit score restrict. Say you owe $600 on a bank card with a restrict of $2,000. Your credit score utilization can be 30%. Having a credit score utilization rating of 30% or decrease is taken into account good.

When you think about every part, the injury your debt load does to your credit score rating far outweighs the small and momentary impact in your credit score rating attributable to a bank card utility. In relation to debt, at all times search for the longer-term answer.

Extra on bank cards:

Our methodology

For the perfect steadiness switch bank cards 2022 rating, we categorized bank cards based mostly on their limited-time steadiness switch charges. Our rankings additionally took into consideration mounted annual rates of interest on steadiness transfers and purchases, buy protections and annual charges.

‡MoneySense.ca and Ratehub.ca are each owned by father or mother firm Ratehub Inc. We could also be partnered with some monetary establishments, however this doesn’t affect the “Canada’s Finest Credit score Card” rankings. You may learn extra about this in our Editorial Code of Conduct.

This text was initially revealed on Feb. 19, 2019, and has since been up to date.