For those who carry a steadiness on a daily bank card, chances are high you’re paying round 20% in curiosity. At that charge, it will probably turn into tough to maintain up with the funds and your debt can spike—quick.
Transferring your bank card debt to a steadiness switch bank card will help you repay the principal extra shortly 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 typically 0%) charge for a restricted time. Try our picks for the most effective steadiness switch bank cards in Canada.
Bank card comparability software
Examine your choices with our interactive software and get a way of how a lot you can save on curiosity relying on the dimensions of your steadiness.
Why belief us
MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial group of educated journalists works intently with main private finance consultants in Canada. That will help you discover the most effective monetary merchandise, we examine the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Be taught extra about our advertising and trusted partners.
The perfect steadiness switch playing cards, intimately
MBNA True Line Mastercard
At a look: With a 0% steadiness switch charge for a full 12 months, the MBNA True Line Mastercard affords loads of runway to convey down your debt. This card doesn’t cost an annual charge, which is one other benefit when you’re working to repay an present steadiness.
featured
MBNA True Line Mastercard
Annual charge: $0
Low rate of interest: 12.99%
Stability switch supply: earn a 0% promotional annual rate of interest (“AIR”) for 12 months on steadiness transfers accomplished inside 90 days of account opening, with a 3% switch charge. This supply shouldn’t be out there for residents of Quebec.
Card particulars
Rates of interest | 24.99% on money advances, 17.99% on steadiness transfers |
Revenue required | None specified |
Credit score rating | 660 or larger |
Professionals
- The MBNA True Line Mastercard is a rarity amongst steadiness switch playing cards, providing a steadiness switch promotion with out charging an annual charge—a super mixture for cardholders seeking 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 whole 12 months, the longest promotional interval of any card on this listing.
- Whereas many comparable playing cards require you to switch your steadiness instantly, the MBNA True Line affords larger flexibility by supplying you with as much as 90 days after opening the account to finish the switch.
- Apart from benefiting from the steadiness switch promo, there are different methods to avoid wasting on curiosity in your on a regular basis purchases. MBNA’s Month-to-month Fee Plan will help you scale 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 charge involves an finish, its common steadiness switch charge is simply 17.99% (significantly decrease than the typical of twenty-two.99% for different bank cards).
Cons
- Whereas the MBNA True Line doesn’t have an annual charge, it expenses a switch charge of three% on the transferred steadiness or a minimal of $7.5 (that means that you just pay $30 for each $1,000 transferred). The three% switch charge is the cardboard’s largest con and is notably larger 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 expenses a excessive 24.99% APR on money advances.
CIBC Choose Visa Card
At a look: The CIBC Choose Visa Card affords a sexy 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 charge. A handful of different perks, like widespread provider accident insurance coverage and reductions on gasoline, spherical out the bundle.
CIBC Choose Visa
Annual charge: $29
Low rate of interest: 13.99% on purchases
Stability switch supply: Switch your bank card steadiness. Get 0% curiosity for as much as 10 months with a 1% switch charge and a two 12 months annual charge rebate. Phrases and circumstances apply.
Card particulars
Rates of interest | 13.99% on purchases, 13.99% on money advances, 13.99% on steadiness transfers |
Revenue required | $15,000 per 12 months |
Credit score rating | 660 or larger |
Professionals
- Whereas the CIBC Choose Visa does cost an annual charge, the steadiness switch charge is just one% (that means you pay simply $10 for each $1,000 transferred). For notably giant balances, the switch charge generally is a big think about figuring out which card is best for you and is doubtlessly much more vital than the cardboard’s annual charge.
- A uncommon and welcome addition for a low-interest card, the CIBC Choose Visa affords cardholders as much as $100,000 in widespread provider accident insurance coverage, which covers accidents occurred whereas touring inside a aircraft, cruise or different widespread provider types of transport.
- Whenever 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 authorised credit score restrict. Relying on the restrict you’re authorised 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 larger 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 affords an attractive steadiness switch possibility. The annual charge is a manageable $29, and the charge is waived for the primary 12 months or waived altogether when you’ve got Scotia’s Most well-liked or Final banking bundle. The 12.99% rate of interest is among the many lowest round, making it appropriate for consolidating your debt.
featured
Scotiabank Worth Visa
Annual charge: Annual charge: $29
Stability switch supply: 0% introductory rate of interest on steadiness transfers for the primary 10 months. Supply ends October 31, 2024.
Card particulars
Rates of interest | 12.99% on purchases, 12.99% on money advances, 12.99% on steadiness transfers |
Revenue required | $12,000 per 12 months |
Credit score rating | 725 or larger |
BMO Most well-liked Charge Mastercard
At a look: BMO’s Most well-liked Charge Mastercard comes with a low common rate of interest of 13.99% and an annual charge 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.
featured
BMO Most well-liked Charge Mastercard
Annual charge: $29
Low rate of interest: 13.99% on purchases
Welcome supply: get a 0.99% introductory rate of interest on steadiness transfers for 9 months with a 2% switch charge
Card particulars
Rates of interest | 15.99% on money advances, 15.99% on steadiness transfers |
Revenue required | $15,000 (private or family) |
Credit score rating | 660 or larger |
How we decide the most effective steadiness switch playing cards
The MoneySense editors apply their bank card experience and data of Canadians’ monetary targets to give you choice standards that matches the wants of the supposed cardholder. With steadiness switch bank cards, the important thing issues are the size and charge of the steadiness switch promotion, in addition to the steadiness switch charge. Our rankings are an unbiased supply of knowledge for Canadians. The addition of hyperlinks from affiliate companions has no bearing on the outcomes. Learn extra about our selection process and about how MoneySense makes money.
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 objective is normally 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 shortly. By transferring debt to a card with a decrease rate of interest, you’ll incur decrease curiosity expenses—so extra of your cash goes to the principal steadiness.
How does a steadiness switch work?
A steadiness switch will help you save on curiosity expenses by shifting your bank card steadiness to a different card with a decrease rate of interest. To reveal how bank card steadiness transfers work, let’s examine the curiosity charged on an excellent bank card steadiness over time.
Let’s say you’ve gotten a bank card with a steadiness of $4,000 and a 20.99% annual rate of interest. Each month, you make a $400 invoice fee. Do you have to stick to paying down the steadiness in your present 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 charge.
Common bank card | Stability switch bank card | |
Preliminary bank card steadiness | $4,000 | $4,000 |
Buy rate of interest | 20.99% | 0% for 1 12 months |
Month-to-month fee | $400 | $400 |
Stability switch charge | N/A | $120 (3% of your preliminary steadiness) |
Months required to repay steadiness | 12 | 10 |
Whole curiosity paid over time | $435.20 | $0 |
Whole price | $435.20 | $120 |
On this case, you’d save $315.20 in curiosity ($435 – $120) and repay your debt two months sooner by transferring the steadiness to the MBNA steadiness switch bank card within the instance above.
One factor to contemplate is the charge related to the switch, which may vary from 1-3% of the full steadiness you might be transferring to a different card. The charge could be small in comparison with the curiosity expenses you might be paying, when you’ve got a excessive steadiness in your bank card.
When you’ve got a comparatively small quantity in your card, like $1,500, however you discover you might be continually carrying a steadiness and paying curiosity expenses, contemplate swapping out your card for a low-interest credit card along with your present financial institution, or making use of for a brand new card at one other monetary establishment as an alternative. That method, you received’t pay a steadiness switch charge or further curiosity on the steadiness (till the steadiness switch promotion interval ends, so be sure to pay it off earlier than then). Some card issuers will even rebate or waive your new card’s annual charge for the primary 12 months.
For those who change to a different card along with your present financial institution, you may typically have the decrease rate of interest utilized to your present steadiness and scale back your whole curiosity expenses. 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 is because steadiness transfers normally solely have an effect on your credit score rating within the quick time period, and decreasing your credit score utilization ratio may be useful to your rating within the medium to long run.
Instance of how a steadiness switch works with a small steadiness
Common bank card | Stability switch bank card | |
Bank card steadiness | $1,500 | $1,500 |
Buy rate of interest | 20.99% | 0% for 1 12 months |
Month-to-month funds | $200 | $200 |
Stability switch charge | N/A | $45 (3% of your preliminary steadiness) |
Months required to repay steadiness | 9 | 8 |
Whole curiosity paid over time | $121.96 | $0 |
Whole price | $121.96 | $45 |
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.
Tips on how to do a bank card steadiness switch?
Stability transfers may be an efficient approach to consolidate and tackle debt. There are seven issues to contemplate earlier than you apply for a steadiness switch card.
- Store round for the speed, timing and phrases that go well with you greatest
For those who’re making an attempt to eradicate bank card debt, your greatest wager could be a steadiness switch bank card. These playing cards include promotions that permit cardholders pay very low curiosity (typically as little as 0%) for a restricted time (like six or 10 months). These affords generally is a actually efficient approach to convey down your debt quick, in case you are disciplined about making common funds and usually are not racking up loads of new purchases. The cardboard you select will rely largely on what’s out there while you’re wanting, how lengthy you assume you’ll have to repay your debt, and the cardboard’s different phrases. - Ensure you’re eligible for the steadiness switch
Stability 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. - Timing is every part
Stability switch promotions can be found on the time that you just make your software or typically shortly thereafter. Be strategic about while you apply, and be sure you’re ready to make the switch. Which means having the bank card firm identify, your identify because it seems on the cardboard, the debt whole and the bank card quantity. - Keep in mind 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 is able to have an effect on your month-to-month funds. The way you deal with this may rely upon the quantity of debt you’ve gotten and the way shortly you intend to pay it off. However, typically, the most effective 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 fashion, you’ll get monetary savings on curiosity even when you nonetheless owe after the supply interval. - Make your minimal funds
Even when profiting from a steadiness switch supply, you could make no less than the minimal fee on the cardboard, on time, every month. For those who don’t, that super-low promotional rate of interest can shortly be discontinued and the usual rate of interest will kick in virtually instantly. In different phrases, solely benefit from a steadiness switch supply when you’ve got the money available to make no less than the minimal fee every month and also you’re in the appropriate monetary mindset to tackle debt reimbursement. - Stability switch charges
Some—however not all—playing cards cost a charge for steadiness transfers. This charge is expressed as a proportion of the full quantity you need to transfer, and it normally ranges from 1% to three%. So, for instance, when you’re seeking to switch $1,000 in debt to a card with a 3% charge, your opening steadiness will likely be $1,030. The extra price could be well worth the cash you’ll save on the new decrease rate of interest. However preserve your eyes open for charge offers: Sometimes, a card will run a promotion the place the steadiness switch charge is waived. - Separate your bills
For those who cost a brand new buy to your steadiness switch bank card, this spend will likely be charged on the card’s common rate of interest when you don’t pay on time, not the promotional charge that’s utilized to the steadiness you’ve transferred. This won’t seem to be a giant deal, particularly when you’ve been fortunate sufficient to discover a card with a decrease common charge, however there’s a further catch: Most bank cards apply funds to debt marked on the low or promotional charge first, which suggests your high-interest purchases are sitting there longer, racking up curiosity. For those who’re making an attempt to pay down debt, this solely compounds the issue. It’s good observe to go away your steadiness switch card at residence and use a distinct monetary product (like debit, money or perhaps a totally different bank card) for brand spanking new purchases.
Do you earn money again on steadiness transfers?
Like money advances or purchases of cash orders, steadiness transfers usually are not thought-about to be purchases, so typically, 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 mentioned, 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?
Whenever you apply for any bank card, you obtain a tough credit score inquiry that may quickly convey your credit score rating down a couple of factors. This contains steadiness switch playing cards. Nevertheless, this isn’t a motive to keep away from making use of.
For those who’re wanting right into a steadiness switch bank card, it’s probably since you’ve received some excellent bank card debt. Transferring that debt in an effort to scale back it’s going to have a constructive, 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 may 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 full credit score restrict. Say you owe $600 on a bank card with a restrict of $2,000. Your credit score utilization could 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 brought on by a bank card software. Relating to debt, all the time search for the longer-term answer.
Extra of Canada’s greatest credit cards:
What does the * imply?
Affiliate (monetized) hyperlinks can typically end in a fee to MoneySense (owned by Ratehub Inc.), which helps our web site keep free to our customers. If a hyperlink has an asterisk (*) or is labelled as “Featured,” it’s an affiliate hyperlink. If a hyperlink is labelled as “Sponsored,” it’s a paid placement, which can or might not have an affiliate hyperlink. Our editorial content material won’t ever be influenced by these hyperlinks. We’re dedicated to taking a look at all out there merchandise available in the market. The place a product ranks in our article, and whether or not or not it’s included within the first place, isn’t pushed by compensation. For extra particulars, learn our
MoneySense Monetization policy.