The very best steadiness switch bank cards in Canada for 2024

MBNA True Line Mastercard

At a look: With a 0% steadiness switch fee for a full 12 months, the MBNA True Line Mastercard gives plenty of runway to carry down your debt. This card doesn’t cost an annual payment, each for you and as much as 9 extra customers, which is one other benefit in case you’re working to repay an current steadiness.

Professionals 

• The MBNA True Line Mastercard is a rarity amongst steadiness switch playing cards, providing a steadiness switch promotion with out charging an annual payment—a super mixture for cardholders trying to save on each charges and curiosity. 
• A steadiness switch promo of 0% is as little as it will get, and this card’s supply lasts for a complete 12 months, the longest promotional interval of any card on this listing. 
• Whereas many comparable playing cards require you to switch your steadiness immediately, the MBNA True Line gives higher flexibility by supplying you with as much as 90 days after opening the account to finish the switch.
• Other than benefiting from the steadiness switch promo, there are different methods to save lots of on curiosity in your on a regular basis purchases. MBNA’s Month-to-month Fee Plan may also help you cut back curiosity on giant purchases (these of no less than $100) by breaking funds into smaller, extra manageable chunks over longer intervals of time (6, 12 or 18 months).
• Even after the cardboard’s 0% promotional fee involves an finish, its common steadiness switch fee is simply 12.99% (significantly decrease than the typical of twenty-two.99% for different bank cards).

Cons 

• Whereas the MBNA True Line doesn’t have an annual payment, it fees a switch payment of three% on the transferred steadiness or a minimal of $7.5 (that means that you simply pay $30 for each $1,000 transferred). The three% switch payment is the cardboard’s largest con and is notably increased than the opposite steadiness switch playing cards on this listing.
• Although its buy and steadiness switch rates of interest are low, the MBNA True Line fees a excessive 24.99% APR on money advances.

CIBC Choose Visa Card

At a look: The CIBC Choose Visa Card gives a lovely 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 gasoline, spherical out the package deal.

CIBC Choose Visa Card

Go to CIBC.com for extra particulars

• Annual payment: $29
• Rates of interest: 13.99% on money advances, 13.99% on steadiness transfers
• Steadiness switch supply: Switch your bank card steadiness. Get 0% curiosity for as much as 10 months with a 1% switch payment and a primary 12 months annual payment rebate. Circumstances apply.

Go to CIBC.com for extra particulars

Professionals 

• Whereas the CIBC Choose Visa does cost an annual payment, the steadiness switch payment is just one% (that means you pay simply $10 for each $1,000 transferred). For notably giant balances, the switch payment generally is a large think about figuring out which card is best for you and is probably much more necessary than the cardboard’s annual payment.
• A uncommon and welcome addition for a low-interest card, the CIBC Choose Visa gives cardholders as much as $100,000 in frequent service accident insurance coverage, which covers accidents occurred whereas touring inside a aircraft, cruise or different frequent service types of transport. 
• If you hyperlink this card with Journie Rewards, it can save you as much as $0.10 per litre on gasoline at collaborating Pioneer, Fas Fuel, Ultramar and Chevron gasoline stations.

Cons 

• The cardboard’s steadiness switch promotion is for 10 months, which isn’t so long as the aforementioned MBNA True Line Mastercard.
• The steadiness you’re transferring can’t be over 50% of your whole authorized credit score restrict. Relying on the restrict you’re authorized for and the steadiness you intend to switch, your steadiness switch request could also be rejected.
• The cardboard’s common rate of interest on purchases and steadiness transfers is 13.99% (after the promo interval ends), which is barely increased in comparison with different playing cards on this listing.

Scotiabank Worth Visa

At a look: For many who financial institution with Scotiabank, the Scotiabank Worth Visa gives an attractive steadiness switch possibility. The annual payment is a manageable $29, and the payment is waived for the primary 12 months or waived altogether in case you have Scotia’s Most popular or Final banking package deal. The 12.99% rate of interest is among the many lowest round, making it appropriate for consolidating your debt. 

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Scotiabank Worth Visa

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• Annual payment: $29 (waived for the primary 12 months)
• Steadiness switch supply: 0% introductory rate of interest on steadiness transfers for the primary 10 months. Supply ends 31 October 2024.

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Professionals 

• The Scotiabank Worth Visa fees a switch payment of just one% or a minimal of $5 (that means that you simply pay simply $10 for each $1,000 transferred). For big balances specifically, this low switch payment generally is a large benefit.
• Other than the promotional steadiness switch supply, the Worth Visa has a low common curiosity of 12.99% on all card transactions together with money advances.
• Get a 25% low cost on rental vehicles at collaborating Avis places.
• Cardholders may also save on curiosity with the Scotia SelectPay Program, which helps you to break up giant purchases (of no less than $100) into extra manageable month-to-month installments (an rate of interest and installment payment applies and varies by plan).

Cons 

• The cardboard’s steadiness switch promotion is ten months, which isn’t so long as the aforementioned MBNA True Line Mastercard.

BMO Most popular Fee Mastercard

At a look: BMO’s Most popular Fee Mastercard comes with a low common rate of interest of 13.99% and an annual payment of solely $29, which is waived for the primary 12 months. The steadiness switch supply isn’t as robust as others on this listing, however can nonetheless prevent cash in comparison with a daily card.

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BMO Most popular Fee Mastercard

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• Annual payment: $29 (waived for the primary 12 months)
• Rate of interest: 13.99% on purchases
• Welcome supply: You may earn a 0.99% introductory rate of interest on Steadiness Transfers for 9 months with a 2% switch payment and we’ll waive the $29 annual payment for the primary 12 months*.
• Annual earnings requirement: $15,000 (private or family)

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Professionals 

• The BMO Most popular Fee has a low annual payment of $29, which is beneath common for a low-interest card.
• Other than the promotional steadiness switch supply, the BMO Most popular Fee has a low common rate of interest of 13.99% on purchases and 15.99% on money advances.

Cons 

• The cardboard’s largest downside is that its steadiness switch promo fee sits at 0.99%—different playing cards on this listing supply switch charges of 0%. Additionally, the promotional interval lasts simply 9 months, and a 2% switch payment applies.

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 quicker.

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

How does a steadiness switch work? 

A steadiness switch may also help you save on curiosity fees by transferring your bank card steadiness to a different card with a decrease rate of interest. To display how bank card steadiness transfers work, let’s examine the curiosity charged on an impressive bank card steadiness over time. 

Let’s say you’ve got a bank card with a steadiness of $4,000 and a 20.99% annual rate of interest. Each month, you make a $400 invoice cost. Must you follow paying down the steadiness in your current card or switch the steadiness to a steadiness switch card with a decrease rate of interest? For this instance, we’ll use the MBNA True Line Mastercard, which comes with a 0% promotional rate of interest for 12 months and a 3% switch payment. 

On this case, you’d save $315.20 in curiosity ($435 – $120) and repay your debt two months quicker by transferring the steadiness to the MBNA steadiness switch bank card within the instance above. 

One factor to think about is the payment related to the switch, which may vary from 1-3% of the overall steadiness you might be transferring to a different card. The payment is perhaps small in comparison with the curiosity fees you might be paying, in case you have a excessive steadiness in your bank card. 

If in case you have a comparatively small quantity in your card, like $1,500, however you discover you might be continually carrying a steadiness and paying curiosity fees, contemplate swapping out your card for a low-interest bank card together with your current financial institution, or making use of for a brand new card at one other monetary establishment as a substitute. That method, you gained’t pay a steadiness switch payment or extra curiosity on the steadiness (till the steadiness switch promotion interval ends, so ensure to pay it off earlier than then). Some card issuers will even rebate or waive your new card’s annual payment for the primary 12 months. 

In the event you change to a different card together with your present financial institution, you may typically have the decrease rate of interest utilized to your current steadiness and cut back your whole curiosity fees. Understand that in case your steadiness represents a considerable amount of your out there credit score on the brand new card, too, and your utilization ratio creeps above 30%, it might be worthwhile to look right into a steadiness switch bank card. It’s because steadiness transfers often solely have an effect on your credit score rating within the quick time period, and lowering your credit score utilization ratio could be useful in your rating within the medium to long run. 

Instance of how a steadiness switch works with a small steadiness 

On this instance, you’d save $76, and it might solely take one much less month to repay your steadiness, so it might not make sense to make use of a steadiness switch. 

Find out how to do a bank card steadiness switch

Steadiness transfers could be an efficient strategy to consolidate and tackle debt. There are seven issues to think about earlier than you apply for a steadiness switch card.

1. Store round for the speed, timing and phrases that go well with you greatest
   In the event you’re attempting to get rid of bank card debt, your greatest guess is perhaps a steadiness switch bank card. These playing cards include promotions that allow cardholders pay very low curiosity (typically as little as 0%) for a restricted time (like six or 10 months). These gives generally is a actually efficient strategy to carry down your debt quick, in case you are disciplined about making common funds and should not racking up plenty 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 transferring debt from a bank card at one financial institution to a card at one other financial institution. It won’t work between two playing cards from the identical financial institution. 
3. Timing is the whole lot
   Steadiness switch promotions can be found on the time that you simply make your software or typically shortly thereafter. Be strategic about once you apply, and be sure to’re ready to make the switch. Meaning having the bank card firm title, your title because it seems on the cardboard, the debt whole and the bank card quantity.
4. Keep in mind that steadiness switch promotions don’t final ceaselessly
   The low, single-digit charges out there on steadiness switch bank cards are limited-time gives. As soon as the promotional interval is over, the playing cards’ common rates of interest will kick in, which is able to have an effect on your month-to-month funds. The way you deal with it will rely on the quantity of debt you’ve got and the way shortly you intend to pay it off. However, on the whole, one of the best methods embody 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 get monetary savings on curiosity even in case you nonetheless owe after the supply interval.
5. Make your minimal funds
   Even when making the most of a steadiness switch supply, it’s essential to make no less than the minimal cost on the cardboard, on time, every month. In the event you don’t, that super-low promotional rate of interest can shortly be discontinued and the usual rate of interest will kick in nearly instantly. In different phrases, solely benefit from a steadiness switch supply in case you have the money readily available to make no less than the minimal cost every month and also you’re in the proper 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, in case you’re trying to switch $1,000 in debt to a card with a 3% payment, your opening steadiness shall be $1,030. The extra price could be well worth the cash you’ll save on the new decrease rate of interest. However hold your eyes open for payment offers: Often, a card will run a promotion the place the steadiness switch payment is waived.
7. Separate your bills
   In the event you cost a brand new buy to your steadiness switch bank card, this spend shall be charged on the card’s common rate of interest in case you don’t pay on time, not the promotional fee that’s utilized to the steadiness you’ve transferred. This won’t appear to be a giant deal, particularly in case you’ve been fortunate sufficient to discover a card with a decrease common fee, however there’s an extra 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. In the event you’re attempting to pay down debt, this solely compounds the issue. It’s good follow to depart your steadiness switch card at dwelling and use a unique 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 should not thought of to be purchases, so on the whole, they’re not eligible for money again rewards. There could also be some uncommon exceptions with sure promotional gives, however these are few and much between. That stated, the curiosity saved by transferring 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 affect my credit score rating?

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

In the event you’re trying right into a steadiness switch bank card, it’s doubtless since you’ve received some excellent bank card debt. Shifting that debt as a way to cut back it is going to have a constructive, lasting affect 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 may cut back your debt load quicker. A smaller debt load can enhance your credit score rating as a result of it lowers your credit score utilization—a significant 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 the whole lot, the harm your debt load does to your credit score rating far outweighs the small and short-term impact in your credit score rating attributable to a bank card software. In relation to debt, all the time search for the longer-term resolution.

Extra of Canada’s greatest bank cards: