In the event you carry a stability on a daily bank card, likelihood is you’re paying round 20% in curiosity. At that fee, it will probably turn out to be tough to maintain up with the funds and your debt can spike—quick.
Shifting your bank card debt to a stability switch bank card may help you repay the principal extra rapidly by providing you with entry to a decrease common rate of interest. Many stability switch playing cards provide a welcome bonus with an extra-low (and typically 0%) fee for a restricted time. Take a look at our picks for the very best stability switch bank cards in Canada.
Bank card comparability device
Examine your choices with our interactive device and get a way of how a lot you might save on curiosity relying on the scale of your stability.
The most effective stability switch playing cards in Canada
Discovering the suitable stability switch bank card could make a giant distinction in managing your debt and saving on curiosity. Whether or not you’re searching for a low introductory rate of interest, a minimal stability switch charge, or a low or no annual charge, we’ve rounded up the very best stability switch bank cards in Canada that can assist you select the one that matches your wants.
| Greatest card by class | Highlights | Particulars | Eligibility necessities |
|---|---|---|---|
| FEATURED MBNA True Line Mastercard  GO TO SITE |
Steadiness switch provide: 0% curiosity for 12 months
Switch charge: 3% of stability transferred |
Annual charge: $0
Common rates of interest: 12.99% on purchases, 24.99% on money advances, and 17.99% on stability transfers |
Revenue: None specified
Credit score rating: 660 or increased Situations: Provide not out there to Quebec residents |
CIBC Select Visa LEARN MORE |
Steadiness switch provide: 0% curiosity for as much as 10 months
Switch charge: 1% of stability transferred |
Annual charge: $29
Common rates of interest: 13.99% on purchases, 13.99% on money advances, 13.99% on stability transfers |
Revenue: $15,000
Credit score rating: 660 or increased |
| FEATURED Scotiabank Value Visa  GO TO SITE |
Steadiness switch provide: 0% curiosity for 10 months
Switch charge: 1% of stability transferred |
Annual charge: $29 (waived first 12 months)
Common rates of interest: 13.99% on purchases, 13.99% on money advances, 13.99% on stability transfers |
Revenue: $12,000
Credit score rating: 725 or increased |
| FEATURED BMO Preferred Rate Mastercard  GO TO SITE |
Steadiness switch provide: 0.99% curiosity for 9 months
Switch charge: 2% of stability transferred |
Annual charge: $29
Common rates of interest: 13.99% on purchases, 15.99% on money advances, 15.99% on stability transfers |
Revenue: $15,000 (private or family)
Credit score rating: 660 or increased |
MBNA True Line Mastercard
At a look: With a 0% stability switch fee 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 if you happen to’re working to repay an current stability.
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MBNA True Line Mastercard
Annual charge: $0
Low rate of interest: 12.99%
Steadiness switch provide: earn a 0% promotional annual rate of interest (“AIR”) for 12 months on stability transfers accomplished inside 90 days of account opening, with a 3% switch charge. This provide just isn’t out there for residents of Quebec.
Card particulars
| Rates of interest | 24.99% on money advances, 17.99% on stability transfers |
| Revenue required | None specified |
| Credit score rating | 660 or increased |
Professionals
- The MBNA True Line Mastercard is a rarity amongst stability switch playing cards, providing a stability switch promotion with out charging an annual charge—an excellent mixture for cardholders seeking to save on each charges and curiosity.
- A stability switch promo of 0% is as little as it will get, and this card’s provide lasts for a whole 12 months, the longest promotional interval of any card on this checklist.
- Whereas many comparable playing cards require you to switch your stability immediately, the MBNA True Line affords higher flexibility by providing you with as much as 90 days after opening the account to finish the switch.
- Apart from benefiting from the stability 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 help you scale back curiosity on giant purchases (these of no less than $100) by breaking funds into smaller, extra manageable chunks over longer durations of time (6, 12 or 18 months).
- Even after the cardboard’s 0% promotional fee involves an finish, its common stability switch fee is simply 17.99% (significantly decrease than the common of twenty-two.99% for different bank cards).
Cons
- Whereas the MBNA True Line doesn’t have an annual charge, it prices a switch charge of three% on the transferred stability or a minimal of $7.5 (which means that you simply pay $30 for each $1,000 transferred). The three% switch charge is the cardboard’s greatest con and is notably increased than the opposite stability switch playing cards on this checklist.
- Although its buy and stability switch rates of interest are low, the MBNA True Line prices a excessive 24.99% APR on money advances.
CIBC Choose Visa Card
At a look: The CIBC Choose Visa Card affords a horny 13.99% rate of interest, even on money advances, and it has a 10-month stability switch provide of 0% curiosity and a low 1% stability switch charge. A handful of different perks, like frequent service 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
Steadiness switch provide: Switch your bank card stability. 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 stability transfers |
| Revenue required | $15,000 per 12 months |
| Credit score rating | 660 or increased |
Professionals
- Whereas the CIBC Choose Visa does cost an annual charge, the stability switch charge is just one% (which means you pay simply $10 for each $1,000 transferred). For significantly giant balances, the switch charge could be a enormous consider figuring out which card is best for you and is doubtlessly much more essential 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 frequent service accident insurance coverage, which covers accidents occurred whereas touring inside a aircraft, cruise or different frequent service types of transport.
- While you hyperlink this card with Journie Rewards, it can save you as much as $0.10 per litre on gasoline at taking part Pioneer, Fas Fuel, Ultramar and Chevron gasoline stations.
Cons
- The cardboard’s stability switch promotion is for 10 months, which isn’t so long as the aforementioned MBNA True Line Mastercard.
- The stability 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 stability you propose to switch, your stability switch request could also be rejected.
- The cardboard’s common rate of interest on purchases and stability transfers is 13.99% (after the promo interval ends), which is barely increased in comparison with different playing cards on this checklist.
Scotiabank Worth Visa
At a look: For many who financial institution with Scotiabank, the Scotiabank Worth Visa affords an attractive stability switch possibility. The annual charge is a manageable $29, and the charge is waived for the primary 12 months or waived altogether if in case you have Scotia’s Most well-liked or Final banking bundle. The 13.99% rate of interest is among the many lowest round, making it appropriate for consolidating your debt.
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Scotiabank Worth Visa
Annual charge: $29 (waived first 12 months)
Steadiness switch provide: 0% curiosity for 10 months.
Card particulars
| Rates of interest | 13.99% on purchases, 13.99% on money advances, 13.99% on stability transfers |
| Revenue required | $12,000 per 12 months |
| Credit score rating | 725 or increased |
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 stability switch provide isn’t as sturdy as others on this checklist, however can nonetheless prevent cash in comparison with a daily card.
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BMO Most well-liked Charge Mastercard
Annual charge: $29
Low rate of interest: 13.99% on purchases
Welcome provide: get a 0.99% introductory rate of interest on stability transfers for 9 months with a 2% switch charge
Card particulars
| Rates of interest | 15.99% on money advances, 15.99% on stability transfers |
| Revenue required | $15,000 (private or family) |
| Credit score rating | 660 or increased |
How we decide the very best stability switch playing cards
The MoneySense editors apply their bank card experience and data of Canadians’ monetary targets to provide you with choice standards that matches the wants of the meant cardholder. With stability switch bank cards, the important thing concerns are the size and fee of the stability switch promotion, in addition to the stability 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 stability switch?
A stability switch is the switch of debt from one bank card to a different. Though a cardholder can switch their debt for quite a lot 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 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 stability.
How does a stability switch work?
A stability switch may help you save on curiosity prices by shifting your bank card stability to a different card with a decrease rate of interest. To display how bank card stability transfers work, let’s evaluate the curiosity charged on an impressive bank card stability over time.
Let’s say you could have a bank card with a stability 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 stability in your current card or switch the stability to a stability 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 | Steadiness switch bank card | |
| Preliminary bank card stability | $4,000 | $4,000 |
| Buy rate of interest | 20.99% | 0% for 1 12 months |
| Month-to-month fee | $400 | $400 |
| Steadiness switch charge | N/A | $120 (3% of your preliminary stability) |
| Months required to repay stability | 12 | 10 |
| Whole curiosity paid over time | $435.20 | $0 |
| Whole value | $435.20 | $120 |
On this case, you’d save $315.20 in curiosity ($435 – $120) and repay your debt two months quicker by transferring the stability to the MBNA stability switch bank card within the instance above.
One factor to think about is the charge related to the switch, which might vary from 1-3% of the full stability you might be transferring to a different card. The charge may be small in comparison with the curiosity prices you might be paying, if in case you have a excessive stability 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 stability and paying curiosity prices, take into account swapping out your card for a low-interest credit 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 means, you received’t pay a stability switch charge or extra curiosity on the stability (till the stability switch promotion interval ends, so be certain 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.
In the event you swap to a different card together with your present financial institution, you possibly can typically have the decrease rate of interest utilized to your current stability and scale back your whole curiosity prices. Remember that in case your stability represents a considerable amount of your out there credit score on the brand new card, too, and your utilization ratio creeps above 30%, it could be worthwhile to look right into a stability switch bank card. It is because stability transfers often solely have an effect on your credit score rating within the quick time period, and lowering your credit score utilization ratio will be helpful to your rating within the medium to long run.
Instance of how a stability switch works with a small stability
| Common bank card | Steadiness switch bank card | |
| Bank card stability | $1,500 | $1,500 |
| Buy rate of interest | 20.99% | 0% for 1 12 months |
| Month-to-month funds | $200 | $200 |
| Steadiness switch charge | N/A | $45 (3% of your preliminary stability) |
| Months required to repay stability | 9 | 8 |
| Whole curiosity paid over time | $121.96 | $0 |
| Whole value | $121.96 | $45 |
On this instance, you’d save $76, and it could solely take one much less month to repay your stability, so it could not make sense to make use of a stability switch.
Tips on how to do a bank card stability switch?
Steadiness transfers will be an efficient option to consolidate and deal with debt. There are seven issues to think about earlier than you apply for a stability switch card.
- Store round for the speed, timing and phrases that go well with you greatest
In the event you’re making an attempt to eradicate bank card debt, your greatest wager may be a stability 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 affords could be a actually efficient option to convey down your debt quick, if you’re disciplined about making common funds and aren’t racking up loads of new purchases. The cardboard you select will rely largely on what’s out there while you’re trying, how lengthy you assume you’ll have to repay your debt, and the cardboard’s different phrases. - Ensure you’re eligible for the stability 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 won’t work between two playing cards from the identical financial institution. - Timing is every part
Steadiness switch promotions can be found on the time that you simply 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 stability switch promotions don’t final eternally
The low, single-digit charges out there on stability 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 can rely upon the quantity of debt you could have and the way rapidly you propose to pay it off. However, usually, the very best methods embrace paying off the stability earlier than the stability switch provide ends and selecting a card with a low common rate of interest. This fashion, you’ll get monetary savings on curiosity even if you happen to nonetheless owe after the provide interval. - Make your minimal funds
Even when benefiting from a stability switch provide, you should make no less than the minimal fee on the cardboard, on time, every month. In the event you 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 make the most of a stability switch provide if in case you have the money available to make no less than the minimal fee every month and also you’re in the suitable monetary mindset to tackle debt reimbursement. - Steadiness switch charges
Some—however not all—playing cards cost a charge for stability transfers. This charge is expressed as a share of the full quantity you need to transfer, and it often ranges from 1% to three%. So, for instance, if you happen to’re seeking to switch $1,000 in debt to a card with a 3% charge, your opening stability might be $1,030. The extra value could be well worth the cash you’ll save on the new decrease rate of interest. However preserve your eyes open for charge offers: Often, a card will run a promotion the place the stability switch charge is waived. - Separate your bills
In the event you cost a brand new buy to your stability switch bank card, this spend might be charged on the card’s common rate of interest if you happen to don’t pay on time, not the promotional fee that’s utilized to the stability you’ve transferred. This may not seem to be a giant deal, particularly if you happen to’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 making an attempt to pay down debt, this solely compounds the issue. It’s good apply to depart your stability 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 stability transfers?
Like money advances or purchases of cash orders, stability transfers aren’t thought-about to be purchases, so usually, 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 stability 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 convey your credit score rating down just a few factors. This contains stability switch playing cards. Nonetheless, this isn’t a purpose to keep away from making use of.
In the event you’re trying right into a stability switch bank card, it’s seemingly since you’ve acquired some excellent bank card debt. Shifting that debt in an effort to scale back it’s 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 stability, so you possibly can scale 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 stability 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 short-term impact in your credit score rating attributable to a bank card software. On the subject of debt, at all times search for the longer-term resolution.
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