One of the 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 yr, the MBNA True Line Mastercard affords quite a 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, which is one other benefit for those who’re working to repay an present steadiness.

Execs 

• 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 really perfect 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 yr, the longest promotional interval of any card on this checklist. 
• 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 Cost Plan will help you scale back curiosity on giant purchases (these of a minimum of $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 (which means that you just pay $30 for each $1,000 transferred). The three% switch payment is the cardboard’s largest con and is notably larger than the opposite steadiness switch playing cards on this checklist.
• 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 affords a horny 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 widespread 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
• Stability switch supply: Switch your bank card steadiness. Get 0% curiosity for as much as 10 months with a 1% switch payment and a primary yr annual payment rebate. Circumstances apply.

Go to CIBC.com for extra particulars

Execs 

• Whereas the CIBC Choose Visa does cost an annual payment, the steadiness switch payment is only one% (which means you pay simply $10 for each $1,000 transferred). For significantly giant balances, the switch payment generally is a large think about figuring out which card is best for you and is doubtlessly much more vital than the cardboard’s annual payment.
• A uncommon and welcome addition for a low-interest card, the CIBC Choose Visa affords cardholders as much as $100,000 in widespread service accident insurance coverage, which covers accidents occurred whereas touring inside a aircraft, cruise or different widespread 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 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 complete permitted credit score restrict. Relying on the restrict you’re permitted 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 checklist.

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 payment is a manageable $29, and the payment is waived for the primary yr 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. 

featured

Scotiabank Worth Visa

go to website

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

go to website

Execs 

• The Scotiabank Worth Visa fees a switch payment of only one% or a minimal of $5 (which means that you just pay simply $10 for each $1,000 transferred). For giant balances specifically, this low switch payment generally is a large benefit.
• Apart from 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 automobiles at taking part Avis places.
• Cardholders can even save on curiosity with the Scotia SelectPay Program, which helps you to break up giant purchases (of a minimum of $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 Charge Mastercard

At a look: BMO’s Most popular Charge 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 yr. The steadiness switch supply isn’t as robust as others on this checklist, however can nonetheless prevent cash in comparison with a daily card.

featured

BMO Most popular Charge Mastercard

go to website

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

go to website

Execs 

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

Cons 

• The cardboard’s largest disadvantage is that its steadiness switch promo fee sits at 0.99%—different playing cards on this checklist 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 quite a lot of causes, the aim 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 rapidly. 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 will 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 evaluate the curiosity charged on an excellent bank card steadiness over time. 

Let’s say you might have 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. Must you keep on with 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 payment. 

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 payment related to the switch, which might vary from 1-3% of the whole steadiness you’re transferring to a different card. The payment is likely to be small in comparison with the curiosity fees you’re paying, in case you have a excessive steadiness in your bank card. 

In case you have a comparatively small quantity in your card, like $1,500, however you discover you’re continuously carrying a steadiness and paying curiosity fees, take into account swapping out your card for a low-interest bank card along with your present financial institution, or making use of for a brand new card at one other monetary establishment as a substitute. That means, you gained’t pay a steadiness switch payment or further curiosity on the steadiness (till the steadiness switch promotion interval ends, so be certain that to pay it off earlier than then). Some card issuers will even rebate or waive your new card’s annual payment for the primary yr. 

In case you change to a different card along with your present financial institution, you possibly can typically have the decrease rate of interest utilized to your present steadiness and scale back your complete 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 could 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 

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

Easy methods to do a bank card steadiness switch

Stability transfers may be an efficient strategy to consolidate and handle 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 swimsuit you greatest
   In case you’re making an attempt to get rid of bank card debt, your greatest wager is likely to be a steadiness switch bank card. These playing cards include promotions that permit cardholders pay very low curiosity (generally as little as 0%) for a restricted time (like six or 10 months). These affords generally is a actually efficient strategy to deliver down your debt quick, in case you are disciplined about making common funds and aren’t racking up quite a lot of new purchases. The cardboard you select will rely largely on what’s out there if you’re wanting, how lengthy you suppose you’ll have to repay your debt, and the cardboard’s different phrases.
2. Be sure to’re eligible for the steadiness switch
   Stability 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 every thing
   Stability switch promotions can be found on the time that you just make your utility or generally shortly thereafter. Be strategic about if 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 complete and the bank card quantity.
4. Keep in mind that steadiness switch promotions don’t final perpetually
   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 it will depend upon the quantity of debt you might have and the way rapidly you intend to pay it off. However, basically, the most effective methods embody paying off the steadiness earlier than the steadiness switch supply ends and selecting a card with a low common rate of interest. This manner, you’ll lower your expenses on curiosity even for those who nonetheless owe after the supply interval.
5. Make your minimal funds
   Even when making the most of a steadiness switch supply, you have to make a minimum of the minimal fee on the cardboard, on time, every month. In case you don’t, that super-low promotional rate of interest can rapidly be discontinued and the usual rate of interest will kick in nearly instantly. In different phrases, solely make the most of a steadiness switch supply in case you have the money readily available to make a minimum of the minimal fee every month and also you’re in the suitable monetary mindset to tackle debt compensation.
6. Stability switch charges
   Some—however not all—playing cards cost a payment for steadiness transfers. This payment is expressed as a share of the whole quantity you need to transfer, and it normally ranges from 1% to three%. So, for instance, for those who’re seeking to switch $1,000 in debt to a card with a 3% payment, your opening steadiness can be $1,030. The extra price could be well worth the cash you’ll save on the new decrease rate of interest. However maintain 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 case you cost a brand new buy to your steadiness switch bank card, this spend can be charged on the card’s common rate of interest for those who 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 for those who’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 case you’re making an attempt to pay down debt, this solely compounds the issue. It’s good apply to depart your steadiness switch card at house 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 aren’t thought of to be purchases, so basically, 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 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 influence my credit score rating?

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

In case you’re wanting right into a steadiness switch bank card, it’s seemingly since you’ve obtained some excellent bank card debt. Transferring that debt with a view 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 steadiness, so you possibly can 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 whole 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 thing, the harm your debt load does to your credit score rating far outweighs the small and short-term impact in your credit score rating brought on by a bank card utility. On the subject of debt, all the time search for the longer-term resolution.

Extra of Canada’s greatest bank cards: