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5 best balance transfer credit cards in Canada
Find the best balance transfer credit card offers in Canada to help you handle your debt and save money by transferring your existing credit card debt to a lower interest rate card.
The best balance transfer credit cards allow you to consolidate your credit card debt onto a single credit card with a lower promotional interest rate. This low rate lasts for a set amount of time and is designed to give you a break from interest payments so that you can pay off more of your principal debt.
Compare best balance transfer credit cards in Canada, learn how balance transfer credit cards work and use our balance transfer calculator to find out how much you can save.
Best balance transfer credit cards in Canada for 2024
Methodology: How we picked Canada’s best balance transfer cards
We’ve chosen the cards on this page by considering the most important factors people consider when looking for a balance transfer credit card. We considered things like the length of the balance transfer intro period, annual fees, promotional and ongoing interest rates, and additional card benefits. No single credit card will be the best choice for everyone, so compare your options before picking your new card.
With the BMO AIR MILES Mastercard, you'll earn Air Miles while enjoying a $0 annual fee. Get 3x the Miles for every $25 spent at participating AIR MILES Partners, 2x the Miles for every $25 spent at any eligible grocery store, and 1 AIR MILE for every $25 spent elsewhere. Plus, this card comes with an appealing balance transfer offer. Get a rate of 0.99% on balance transfers for 9 months. A 2% transfer fee will be charged for each transferred balance.
Get 800 AIR MILES Bonus Miles (enough for $80 towards purchases with AIR MILES Cash).
This card has a $0 annual fee.
Free additional cardholders.
Get 3x the Miles for every $25 spent at participating AIR MILES Partners, 2x the Miles for every $25 spent at any eligible grocery store, and 1 AIR MILE for every $25 spent elsewhere.
Get 2X the points by presenting your BMO Air Miles Mastercard and your Air Miles Card at participating Air Miles Partners.
Save up to 25% off rentals at participating National Car Rental and Alamo Rent a Car locations. Get 15% off admission to Cirque du Soleil shows touring Canada48, and 20% off resident shows in Las Vegas.
Get a rate of 0.99% on balance transfers for 9 months. A 2% transfer fee will be charged for each transferred balance.
You'll face a foreign transaction fee of 2.5% every time you use your card overseas or online with international retailers.
Should you take advantage of the balance transfer offer, you'll face a balance transfer fee of 2%.
Annual Fee
$0
Purchase APR
20.99%
Cash Advance Rate
22.99% (21.99% for Quebec residents)
Balance transfer APR
0.99% intro for the first 9 months (then 22.99% )
Welcome offer
Get 800 AIR MILES Bonus Miles (enough for $80 towards purchases with AIR MILES Cash).
Rewards
Get 3x the Miles for every $25 spent at participating AIR MILES Partners, 2x the Miles for every $25 spent at any eligible grocery store, and 1 AIR MILE for every $25 spent elsewhere.
The President’s Choice Financial Mastercard gives you a low balance transfer rate and a decent return on PC Optimum points for no annual fee. You’ll earn 25 points per $1 spent at Shoppers Drug Mart, 20 points per $1 spent on PC Travel, 30 points per litre when you fuel up at Esso and Mobil gas stations, and 10 points per $1 spent everywhere else. Plus, get a low balance transfer rate of 0.97% for the first 6 months.
The annual fee for this card is $0
You’ll earn 25 points per $1 spent at Shoppers Drug Mart, 20 points per $1 spent on PC Travel, 30 points per litre when you fuel up at Esso and Mobil gas stations, and 10 points per $1 spent everywhere else.
This card comes with a low balance transfer rate of 0.97% for the first 6 months.
Get an emergency cash advance or a replacement card if you lose or misplace your card while travelling.
You won't have to meet any minimum income requirements to qualify for this card.
You'll pay a relatively high purchase interest rate of 21.99% with this card.
There are no additional benefits like travel medical or roadside assistance on offer with this card.
Annual Fee
$0
Purchase APR
21.99%
Cash Advance Rate
22.97%
Balance transfer APR
0.97% intro for the first 6 months (then 22.97% )
Welcome offer
N/A
Rewards
You’ll earn 25 points per $1 spent at Shoppers Drug Mart, 20 points per $1 spent on PC Travel, 30 points per litre when you fuel up at Esso and Mobil gas stations, and 10 points per $1 spent everywhere else.
Please note: All information about President’s Choice Financial Mastercard has been collected independently by Finder and this card is not available through this site.
Get a 0% introductory interest rate on balance transfers for the first 6 months with no balance transfer fee. Apply by October 31, 2024. Get 1% cash back on all eligible gas station, grocery store and drug store purchases and recurring bill payments, and get 0.5% cash back on all other eligible purchases.
Earn cashback. Get 1% cash back on all eligible gas station, grocery store and drug store purchases and recurring bill payments, and get 0.5% cash back on all other eligible purchases.
Annual fee. This card comes with a $0 annual fee.
Signup bonus. Earn a Earn 5% cash back on all purchases for the first 3 months (up to $2,000 spend). Plus, get a 0% introductory interest rate on balance transfers for the first 6 months with no balance transfer fee. Apply by October 31, 2024. when you sign up..
Low return on other purchases. Receive only 0.5% on all other categories of spending.
Annual Fee
$0
Purchase APR
intro for the first 6 months (then from 19.99% )
Cash Advance Rate
22.99%
Balance transfer APR
0% intro for the first 6 months (then 22.99% )
Welcome offer
Earn 5% cash back on all purchases for the first 3 months (up to $2,000 spend). Plus, get a 0% introductory interest rate on balance transfers for the first 6 months with no balance transfer fee. Apply by October 31, 2024.
Rewards
Get 1% cash back on all eligible gas station, grocery store and drug store purchases and recurring bill payments, and get 0.5% cash back on all other eligible purchases.
The CIBC Select Visa offers a low 13.99% interest rate for purchases and cash advances. It also comes with a 0% balance transfer rate so you can save money by moving your outstanding balance over from a high-interest card. The downside of this card is that it comes with relatively few benefits and you won't earn points or cashback when you spend money.
Your first year's annual fee is $0.
This card comes with a balance transfer rate of 0% for 10 months.
Save up to 25% at participating Avis and Budget locations in Canada and the US when you pay for your rental with your CIBC Select Visa.
Pay an additional fee to get travel medical insurance or payment protection added to your plan.
The minimum annual income requirement for this card is only $15,000.
You'll have to pay $29 per year after your first year to maintain your card.
You can only transfer a balance up to 50% of your credit limit.
Annual Fee
$0 intro annual fee for the first year ($29 thereafter)
Purchase APR
13.99%
Cash Advance Rate
13.99%
Balance transfer APR
0% intro for the first 10 months (then 13.99% )
Welcome offer
Get a 0% interest rate on balance transfers for the first 10 months with a 1% transfer fee. Plus, get a first year annual fee rebate.
If you're looking for a $0 annual fee credit card with unlimited cash back rewards and a competitive balance transfer offer, then the Tangerine World Mastercard could be right for you. Earn unlimited 2% cash back in two Tangerine credit card categories of your choice (or three categories if you open a Tangerine Savings Account and directly deposit your cash back into the account), and unlimited 0.5% cash back on everything else. Conditions apply.
Earn 10% cash back (up to $100) when you spend $1,000 in the first 2 months. Valid until April 30, 2024.
This card has a $0 annual fee.
Free additional cardholders.
Earn unlimited 2% cash back in two Tangerine credit card categories of your choice (or three categories if you open a Tangerine Savings Account and directly deposit your cash back into the account), and unlimited 0.5% cash back on everything else. Conditions apply.
You can unlock cashback offers while travelling outside of Canada and get rebates which you can apply to your statement with Mastercard Travel Rewards by using your card at select merchants.
Charge the full cost of a rental vehicle to your card, and get complimentary damage and theft protection for up to 31 consecutive days.
Get a 1.95% interest rate on balance transfers for the first six months. To take advantage of this offer, you must complete the Balance Transfer request within 30 days of account approval and activate your card within 45 days of approval. A 1% balance transfer fee will be charged on each transferred amount (the fee is waived by Tangerine if you're a resident of Quebec).
Minimum income requirement. You need a minimum personal income of $60,000 or a combined household income of at least $100,000 to apply for this card.
Foreign transaction fee.
You'll face a foreign transaction fee of 2.5% every time you use your card overseas or online with international retailers.
Limited travel benefits. Though this card offers some travel perks, it doesn't come with many of the travel benefits offered by more premium credit cards such as complimentary travel insurance, free flight and hotel upgrades and discounted car rentals.
Annual Fee
$0
Purchase APR
19.95%
Cash Advance Rate
19.95%
Balance transfer APR
1.95% intro for the first 6 months (then 19.95% )
Welcome offer
Earn 10% cash back (up to $100) when you spend $1,000 in the first 2 months. Valid until April 30, 2024.
Rewards
Earn unlimited 2% cash back in two Tangerine credit card categories of your choice (or three categories if you open a Tangerine Savings Account and directly deposit your cash back into the account), and unlimited 0.5% cash back on everything else. Conditions apply.
Credit card
Min. credit score
Balance transfer rate
Balance transfer fee
Annual fee
Introductory offer
BMO AIR MILES Mastercard
660
0.99% for the first 9 months (then 22.99%)
2%
$0
Get 800 AIR MILES Bonus Miles (enough for $80 towards purchases with AIR MILES Cash).
Earn 5% cash back on all purchases for the first 3 months (up to $2,000 spend). Plus, get a 0% introductory interest rate on balance transfers for the first 6 months with no balance transfer fee. Apply by October 31, 2024.
Balance transfer credit cards let you move your debt from your existing credit card over to a new card with a lower interest rate. You can also move several balances from several different cards at one time if you want to consolidate your debts all in one place. Just be aware that you’ll have to pay a balance transfer fee that’s usually worth between 1% and 3% of the amount you wish to transfer.
The promotional interest rate you can get with a balance transfer credit card typically ranges between 0% and 3.5%. This intro offer usually lasts for a period of between 6 and 10 months and doesn’t usually apply to purchases you make on your card. Once the promotional period is over, balance transfer credit cards typically revert to an interest rate of between 8.99% and 19.99% for your total balance.
How does a balance transfer credit card work?
Balance transfer credit cards work as a catch-all for all of your credit card debt. You can transfer all of your outstanding balances over to them to pay off your debt at a lower interest rate. This low interest rate will typically only apply to your transferred balance and not to any new purchases you make. Some balance transfer credit cards also allow you to earn rewards on purchases, though none offer rewards on transferred balances.
When you apply for a balance transfer card, you’ll need to find out what interest rate you’ll be charged and how long this intro APR lasts. Most lenders offer balance transfer rates of 0% to 3.99% for a promotional period of 6 to 10 months. The best balance transfer credit cards will offer the lowest interest rates for the longest intro period. Once the promotional period ends, you’ll be charged interest on any unpaid balance at the revert rate, which is typically the purchase interest rate (usually around 19.99%). This is why it’s important to try and pay off your balance in full before the promotional period ends.
Here’s an example of how much you could save while paying off a $3,000 credit card balance over a 9-month introductory period with a balance transfer credit card versus a normal card.
Normal credit card
Balance transfer card introductory offer
Interest rate
20%
2%
Balance transfer fee
N/A
3% = $90
Months to pay off
9
9
Monthly payment
$361
$336
Total interest and fees paid
$255
$115
This example shows that you could save $25 per month and $140 in total interest and fees by switching to a balance transfer credit card.
Try it yourself: Balance transfer repayment calculator
The calculator starts by adding all of your existing card balances together.
It then adds the fee you’ll pay for a balance transfer to the new card as well as the new card’s annual fee (if applicable).
From there, the calculator takes the total amount of the transfer and divides it by the length of your new card’s intro APR.
This will give you a sliding scale of payments that will show you how much money you’ll have to pay onto your card to pay it off in the introductory period.
It also provides you with stats to show you how much you’ll save by paying off your balance after consolidating your debt with a balance transfer credit card.
If you were to do the math by hand, you’d use this formula:
(Total of existing card balances + Balance transfer fee of new card + Annual fee of new card) / Length of intro APR
What this calculator will tell you about your balance transfer
After you input information such as your balances owing and information about your new credit card, the calculator will show a few different results. The first thing you’ll see is a top bar showing your monthly repayments. The second section shows the number of months it will take to pay off your debt. Finally, the third section outlines how much money you’ll save by transferring.
Compare more balance transfer credit cards and credit card balance transfer offers
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How much can I transfer with a credit card balance transfer?
The amount of money you can transfer with a credit card balance transfer depends on which provider you use. Some balance transfer credit card providers will expect you to transfer a minimum amount over to your new card (usually between $100 and $1,000).
The maximum amount you can transfer with a credit card balance transfer usually sits somewhere between 70% and 100% of your approved credit limit. So, for example, if you have a $3,000 credit limit on your new balance transfer card with a 90% transfer limit, you would be able to transfer a balance worth up to $2,700. You can find out more about minimum and maximum transfers by contacting your provider directly.
How do interest rates work with balance transfer credit cards in Canada?
There are usually three types of interest rates you need to be aware of with balance transfer credit cards in Canada:
Promotional rate. Promotional rates often fall between 0% and 3.5% interest and typically last between 6 and 10 months. During this time, you’ll pay extremely low interest on any balance you transfer over until it comes time for your rate to revert. You usually won’t be able to extend your intro offer at this point.
Revert rate. The revert rate is the interest you’ll pay when your promotional rate expires. The revert rate for balance transfer credit cards in Canada usually falls between 8.99% and 19.99%, depending on what type of card you have. You’ll have to pay this rate for any leftover balance you haven’t paid off.
Purchase rate. You’ll typically be required to pay high interest rates (usually around 19.99%) for any new purchases you make on your credit card. This is why most people use balance transfer cards to pay off their transferred debt quickly rather than to make purchases.
Why do credit card issuers offer low interest rates for balance transfers?
Most credit card issuers offer balance transfer credit cards to get you to switch your business over to them. This is because many hope that when your promotional rate ends, you’ll keep your balance transfer card and use it to make purchases. At this point, you’ll also have to pay full rates on whatever balance you have left to pay off.
Despite the benefits to credit card issuers, switching to a balance transfer credit card is will get you lower interest rates than you would by sticking with your old provider. Just make sure that you don’t sign up for a card that defaults to a higher rate than what you’re currently paying when your intro period ends.
Can I transfer my balance to a new card when my promotional offer expires?
Risk #1: Balance transfer kiting can lead you to accumulate higher debts if you don’t pay your balance off during the promotional period.
Risk #2: Transferring your debt over to another credit card can hurt your credit score since it requires a hard pull on your credit for every new card you apply for.
Risk #3: You may not get approved to transfer your entire balance, which can require you to make multiple payments across several credit cards.
Risk #4: You’ll have to pay a balance transfer fee every time you transfer money, which can eat into any money you save with lower interest rates.
You may want to look into this option if you’re close to paying down your debt, you have a good credit score and you can afford to pay a second balance transfer fee.
A balance transfer fee is a charge from your credit card company, typically between 1% and 3% of the transferred amount, however sometimes it can reach as high as 5%. This fee allows you the convenience of transferring your outstanding debt or debts to a new credit card that likely has a promotional period offering little to no interest for anywhere from 6 to 12 months, or sometimes even up to 15 months. The money you save on paying a lower interest rate can then be used to make larger payments to help get you out of debt faster.
How balance transfer fees are calculated
A balance transfer fee is charged when transferring your existing credit card debt to a new credit card. It’s generally 1% to 3% of the total balance being transferred, but can reach as high as 5%. Usually this fee is set at a minimum amount, and you’ll be required to pay the larger of the two. For example, whichever is greater of either $5 or 3% of the amount of each transfer. If 3% of the amount you are transferring is less than $5, then you will be charged $5. Few banks will put a maximum cap on the transfer fee – most only set a minimum fee.
Scenario 1: You’re transferring $10,000 onto a new balance transfer credit card. The card has a 3% balance transfer fee with no cap. Since the card has no cap on the fee, you’ll pay $300 ($10,000 x .03 = $300) to transfer the debt. As you can see, balance transfer fees can add up quickly if you’re transferring a large balance to a card with no cap on their fee.Scenario 2: You’re transferring $10,000 onto a new balance transfer credit card. The card has a 2% balance transfer fee with a max of $75. Since 2% of $10,000 is $200, you’ll pay just $75 to transfer the debt.
If you’re wondering what fee you’ll be charged to transfer a balance, check the relevant Terms and Conditions of the credit card and you should be able to locate your answer under the “fees and rates” section. If you’re still unsure, contact the provider’s customer service team to confirm what you’ll be expected to pay.
Is a balance transfer credit card a good idea?
Ask these questions to find out if a balance transfer is a good idea.
Is your interest rate making it difficult to pay down your balance? You could benefit from a balance transfer card if you’re paying a standard 19.99% interest rate on your outstanding balance.
Can you repay a significant amount of your debt in the promotional period? It could make sense to get a balance transfer card if you think you can repay a significant amount of your debt in your first 6 to 10 months of card ownership.
Will you be able to transfer all of your debt? You may want to pursue a balance transfer if your institution will allow you to transfer all of your debts over at one time. If your credit limit is small on your new card, you may only be able to transfer a portion of your debt – which can make repayment more difficult to manage.
How much will you actually save with a balance transfer? Balance transfers can come with fees, usually from 1% to 3% of the amount being transferred. The fee, intro rates, long-term APRs, introductory period and your budget should be considered when you’re calculating potential savings.
Do you have a good enough credit score to qualify? You may need to have a credit score of 650 or higher to qualify for a balance transfer card. You should check with the institution you want to apply with to make sure you’ll meet their eligibility requirements.
How much do balance transfer credit cards in Canada cost?
There are three main fees to keep in mind when considering a balance transfer credit card:
Interest rate. Your interest rate will typically fall between 0% and 3.5% with a balance transfer card. This rate will usually only last for up to 10 months, after which it will typically revert to a regular interest rate (around 19.99%).
Balance transfer fee. This is the money you’ll pay to initiate the balance transfer. Your balance transfer fee can run anywhere between 1% and 3% of the total amount you want to transfer. On a transfer of $5,000, this would amount to a fee between $50 and $150.
Annual fee. You could be required to pay an annual fee for your credit card, which can range as high as $150 per year depending on the card. Make sure you factor this fee in when calculating your total costs to initiate a credit card balance transfer.
Pros and cons of balance transfer credit cards
Pros
Faster debt repayment. You will pay minimal or no interest on your debt during your introductory period, so you can pay your principal balance back faster.
No annual fee. Most credit cards with 0% promotional interest rates have no annual fee, which can save you money upfront.
Extra rewards. Some cards let you earn rewards for purchases as well as a promotional interest rate (such as the Tangerine Money-Back Credit Card).
Consolidate debt. You may be able to put all of your credit card debt in one place to get a lower interest rate and make your repayments easier to manage.
No same-bank transfers. You usually can’t make balance transfers between accounts within the same bank or its affiliated financial institutions.
Revert interest rates may apply after missed payments. You may end up paying the revert interest rate (up to 19.99%) if you miss any payments.
What is the best balance transfer card in Canada?
This really depends on whether you want the longest possible intro balance transfer period, or want to pay the least in fees in order to transfer your balance. As a general rule of thumb, the longer the balance transfer period, the more likely you are to have to pay a higher balance transfer fee.
The longest balance transfer periods on the Canadian market is around 9 months. Choosing the best balance transfer card is really a matter of balancing the intro period against the intro interest rate and any potential fees you’ll need to pay.
How to find the best balance transfer credit card
While you may find a couple of 0% balance transfer credit cards on the market, you’ll need to consider more than just the interest rate. You’ll also want to look at how long the promotional interest rate is offered for, and consider any balance transfer and annual fees.
What is the interest rate offered for the transferred balance?
Some cards will offer 0.00% for 6-10 months, while others may offer rates between 0.99% and 1.99% for the same time period. You may have to settle for a low APR instead of 0.00% if you’re looking to earn better rewards.
How long is the introductory rate offered with the best balance transfer credit cards?
Balance transfer promotions typically last between 6-10 months, however sometimes offers will last longer. The idea is to pay off your debt in full during the low or 0.00% APR period so that you can completely avoid paying interest.
Once the intro period ends, any unpaid balance will accrue the standard purchase rate – which could be as high as 19.99%.
Will you have to pay a balance transfer fee?
With some cards, you won’t have to pay balance transfer fees if you apply for the balance transfer at the time of application. Other cards may charge a transfer fee of 1.00-3.00%.
While you might automatically think that paying no balance transfer fee will save you money, it’s important to compare the promotional balance transfer rate and the annual fee of the card to determine if it’s worth moving your balance over.
How much can you transfer?
Different providers will cap the maximum amount that you can balance transfer at different limits. With some cards, you may be able to transfer up to 100% of your credit limit.
With other cards, you may be able to transfer only up to 50% of your credit limit, or up to a dollar amount such as $7,500.00.
Will you have to pay an annual fee for the card?
Paying an annual fee for the card can offset any value you get from your balance transfer offer.
This is why it’s essential to consider all costs, including the balance transfer fee, the annual fee of the card and the promotional APR to determine the value of the offer.
Can you earn cash back, rewards points or miles?
Not all cards offer cash back, points or miles. For example, the Scotiabank Value Visa Card has a competitive balance transfer offer, but you won’t earn any rewards.
Identifying the best balance transfer card for your unique circumstance really boils down to 3 factors: how much card debt you have, what you can afford to repay each month and which deals you can get approved for.
What to consider before getting a balance transfer credit card
There are lots of deals available, so to help you pick the best balance transfer credit card, we recommend asking yourself these important questions:
How much can you afford to repay each month? Take a look at your income and outgoings and try to get a rough idea of how much you could comfortably repay each month.
How long do you need in order to clear your debt? Next, divide your outstanding balance by the amount you can afford to repay each month to establish how many months at low interest you need. It’s a good idea to add a couple of months to act as a buffer.
Could you get a deal with no transfer fee? Balance transfer fees typically come in at about 1-3% of the total sum being transferred, so they’re worth avoiding, if possible. No-fee deals don’t tend to have the very longest periods around, so sometimes the fee is worth shouldering.
Do you need the new card to offer anything else? If you’ve found cards offering the length of period you need, and you can avoid a transfer fee, maybe a new card could offer you some perks. Just watch out for cards that encourage you to use them for further spending. If you only need the balance transfer deal for a brief period, then factors like the card’s standard rate and any perks on offer might have a greater importance to you.
Once you’ve answered these questions you should be well prepared to start comparing deals.
Can I transfer debt from my partner?
Transferring a balance from your existing credit card to a new credit card with a low promotional interest rate is a common way to tackle your debt. What’s less common, though, is getting a balance transfer credit card to help cover a partner or family member’s debt.
A joint balance transfer is when a balance is transferred to help alleviate a partner or family member’s debt. Not all credit card providers allow this process, but there are many that give you the option to move your debt to a partner’s credit card.
Most credit card issuers only allow one primary cardholder, transferring the debt from your partner’s debt to your credit card is probably the most likely option.
While qualifications and application process vary between credit card providers, the following steps can be used as a general guide when transferring someone else’s debt to a balance transfer credit card in your name. Get in touch with the institution you’re applying to for more information.
Compare credit cards. Compare balance transfer credit cards to find one that has a competitive APR and even a 0% promotional period. Make sure it has a credit limit that can support your balance and that you can pay the balance before the promotional period is up. Remember that some issuers only allow you to transfer up to a percentage of your credit limit.
Check the balance transfer terms and conditions. Make sure the credit card allows balance transfers between different account names and if your partner will need to be a secondary cardholder. Check the card’s disclosure statement or call the issuer for more information. Apply for the credit card. Provide details, including your full name, Social Insurance Number (SIN), address, driver’s licence or passport number and employment details.
Include details of the balance transfer. You will need to provide details of the account, including your partner’s name and contact info, the account number, the financial institution’s name, and the amount of debt to be transferred.
Apply for a credit card. If the issuer requires your partner to be a secondary cardholder to process the balance transfer from their account to your new credit card, fill out this section of the application with your partner.
Submit the application. You should get an initial response within a few minutes. If you get conditional approval, follow the issuer’s steps to complete the application process and finalize the balance transfer.
Once this process is successfully completed, you should receive your new credit card within 5 to 10 business days, although it could take up to 21 days in some cases. After you activate the new card, the issuer will process the balance transfer. Stay in touch with the new issuer and be ready to answer any questions or provide supporting documentation if needed to help the transfer run as smoothly as possible.
How to choose the right balance transfer credit card in Canada
Compare the following features to find the right balance transfer credit card for your needs.
Length of promotional balance transfer offer. Most promo interest rates are available for 6-10 months. Find the card with the lowest promotional rate for the longest term.
Balance transfer fees. Balance transfer fees typically range between 1% and 3% of the total amount of debt you’re transferring. Look for a fee that suits your budget and doesn’t drastically cut into the amount you’ll save on interest by switching.
Annual fees. Some credit cards have annual fees ranging from $0 to $150. Look for a card that comes with no annual fee or promises to waive the fee for the first year.
Balance transfer limit. Check your balance transfer limit and make sure the amount you want to transfer is below this number. Otherwise, you’ll end up with a large balance spread across multiple credit cards.
Revert interest rates. Find out how much interest you’ll have to pay when your promo offer runs out. Search for a card that reverts to a low-interest rate (between 8% and 14%) if you want to keep saving money when your promo rates expire.
Penalties. Some credit cards may enforce harsh penalties if you miss a payment, including eliminating your promotional rates altogether. Make sure you read the fine print before you sign up for a card.
Rewards and benefits. Most balance transfer credit cards are designed specifically to help you pay off your debt, though some may offer rewards. Find out what rewards and benefits come with your new card before you make the switch.
Balance transfer credit card eligibility requirements
There are generally 4 eligibility requirements that credit card issuers look at to determine if you are approved for a balance transfer card:
1. Credit history and score.
Are you someone with a long credit history? Do you typically make payments on time? Do you have loans in default? The answers to these questions indicate to providers how you will behave as a future borrower. The better your score and payment habits, the less risky you appear to a provider — and the more money they will be willing to lend you. Higher credit scores generally mean your credit limit will be higher and you’ll have more credit card options.
2. Amount and type of debt.
The balances you owe on other accounts is another hard number credit providers consider to show if you will be able to pay back your debt. While carrying different types of debt won’t prevent you from being approved for a balance transfer card, it is a reflection of your spending habits.
The type of debt you have is another indicator of your ability to use credit responsibly. A student loan or home equity line with low payments and low interest that you consistently pay on time offers a stronger case for your reliability than three store credit cards with maxed-out limits.
3. Debt-to-income ratio
Your debt-to-income ratio (DTI) gives an indication of how much you can afford to pay towards a new debt every month. You can calculate a debt-to-income ratio by dividing the total amount of debt you pay each month by the total amount you make.For example, if you make debt payments totaling $1,100 every month and your monthly income is $4,000, your debt-to-income ratio is $1,100 divided by $4,000 — that’s 0.275 or 27.5%. So about a third of your income goes toward your debts. In general, credit card issuers want to see a DTI of no more than 15-30%.
4. Income
It may appear that income is covered in the debt-to-income ratio, but income is a significant factor on its own. For example, you may not have a large debt balance, but you could still be in a tight spot if your income is lower and your interest payments are relatively high.
How to apply for a balance transfer card
Most balance transfer card providers offer cards to applicants who are at least 18 years old and reside in Canada. While the exact information you’ll need to complete your application can vary by provider, you’ll likely need to submit the following:
Your personal contact information.
Your Social Insurance Number (SIN) and date of birth.
Your residential status.
Financial details, such as your annual salary and other income.
Some balance transfer credit cards in Canada allow you to request your balance transfers on the application itself. You will need to supply the following information if you want to do this:
Account details for the debt you want to transfer.
The amount you expect to transfer to your new card.
4 tips to help get you approved for the best balance transfer credit cards
Compare a range of balance transfer credit cards. Compare several different cards to find the right fit for your personal situation. You should also make sure you meet the eligibility requirements of any card you intend to apply for before you submit an application.
Check your credit score. Apply for your credit score from one of Canada’s major credit bureaus (Equifax or TransUnion). See where you sit as you could have difficulty getting approved with a score below 650. If your credit score is low, talk to your card issuer to find out what their minimum requirements are and what you need to do to qualify.
Ensure you have a low debt-to-income ratio. Your debt to income ratio shows the total amount you owe on all of your debts vs the total amount you make. Just divide your monthly debt payments by your income each month to find out what your debt-to-income ratio is. Be aware that you could struggle to get approved if your ratio sits above 15%.
Speak to an agent in person. Book an appointment to speak to someone about your current financial situation and credit card needs in person. With some providers, you could use details such as your income or current debt load to help make a case for why you should be approved.
While the exact procedure to initiate a balance transfer may vary based on your credit card provider, you can usually follow the steps below to get started:
Initiate a balance transfer request. Ask your new provider to initiate a credit card balance transfer for all of the cards you would like to transfer over.
Provide account information for your old cards. Provide your new credit card issuer with account information for your old cards and specify how much of your balance you want to transfer from each card.
Wait for the transfer to process. Wait several days or weeks for your credit card issuer to process your balance transfer and liaise with your old credit card providers.
Continue to make payments on your old cards. Continue to make payments on your old cards until you get a confirmation that the transfer has gone through.
What should I do with my old cards after I initiate a balance transfer?
You may want to keep your old cards open once you initiate a balance transfer, even if you’re not using them anymore. This is because closing old cards can negatively impact your credit score for the following reasons:
Causes your credit utilization ratio to go down. Your credit utilization ratio assesses the overall credit limit you have across multiple credit cards vs how much of that credit you’re using. If you knock out a couple of credit cards, your overall credit limit will go down even though your credit use will stay the same.
Lowers the average age of your credit cards. The age of your credit cards also matters to the credit bureaus. They will give you a higher score for having older forms of credit (such as long-term loans, mortgages or credit cards). This is why it makes sense to keep your credit card open even if you’re done using it.
When should I close my old credit cards?
You may want to close your old cards if they are fairly new (less than a year old) or you don’t think you can avoid spending money on them if you keep them open. You may also want to close them if they come with annual fees that you don’t want to pay.
Yes, they can hurt your credit score, especially if you open a credit card at the same time.
Many consumers who use balance transfers do so while opening a new credit card — for example, to take advantage of an introductory APR. Because of this, a balance transfer can indirectly affect your score in 3 main ways:
Hard pull after card application. After you send an application, your provider will initiate a hard pull, which means it accesses your credit report to decide whether to lend to you. This can lower your score by 5-10 points, and potentially more. Many hard pulls within a short period of time can impact your score more severely.
Average account age. When you open a new account, the average age of all your credit accounts goes down. In turn, this lowers your credit score slightly, often between 5-20 points. Lenders look at average account age because they want to see you’ve been working with credit for a long time.
Credit utilization. Your credit utilization (how much you use the credit that’s available to you) matters not only across all of your cards, but also on individual cards. For example, you might have $20,000 in total credit. But if one card with a $2,000 limit is maxed out, lenders may still see that as a red flag. Transferring a balance can affect your credit utilization in a similar way. If your transfer takes up the vast majority of your new card’s credit limit, for instance, your credit score could decrease.
Could a balance transfer credit card help my score?
Yes. Getting a balance transfer credit card can help your credit score because of 2 factors:
Utilization rate. Adding another card to your wallet comes with an additional line of credit. If your debt levels stay the same, adding another line of credit will lower your utilization rate, which positively affects your credit score.
Keep in mind, moving your balance won’t erase your debt or your bad habits. Even if you close your account, anything that happened with the old account will remain on your credit report.
Your credit score may also move in a positive direction, albeit a small one. When you open a card, your total credit increases. Meanwhile, you haven’t taken on more debt. This lowers your credit utilization rate, which may increase your credit score.
Let's say you have a balance of $500 and a credit limit of $1,000. Your credit utilization rate is 50% — $500 divided by $1,000.
Now, you open a credit card with a $2,000 credit limit, transferring your balance at the same time. Across your 2 cards, you have $3,000 in total credit. You're still using just $500 of it, so now your credit utilization rate is around 17% — $500 divided by $3,000.
Lenders like to see a low credit utilization rate; they want to see that you're not anywhere close to maxing out your credit. The lower your utilization rate is, the better it is for your credit score.
* This is a fictional, but realistic, example.
How to prevent a balance transfer from negatively impacting your credit score
There are a few easy steps you can follow to protect your credit during a balance transfer:
Don’t apply for cards too often. Try to spread your applications over periods of 6 months or a year. Applying for new cards over a longer period of time will have less of an impact on your credit file.
Leave old credit cards open. After your balance transfer, consider keeping your old card open. If you close it, you’ll lower your average age of credit accounts. Plus, you’ll decrease your total credit. Both can lower your credit score.
Review terms and conditions. Go through the balance transfer offer terms and conditions at the very onset. Account for all applicable fees — including annual and balance transfer fees — and calculate whether you can afford the card. Also, do your research to check whether you meet general eligibility requirements such as credit score, residency and minimum income. By applying only for cards you have a good chance of getting approved for, you can avoid unnecessarily losing points from your credit score.
Pay on time. Making a late payment can result in the termination of the promotional balance transfer offer, so try to stay on top of your bill due dates. Also, consider setting up autopay. As you consistently make on-time payments, you’ll slowly see an improvement in your credit score.
Keep your credit utilization low. Ideally, keep your balance on all of your credit cards below 30% of your credit limit. If a balance transfer puts your credit utilization over this amount, consider paying down the balance.
Maximum balance transfer rule
The most you can transfer depends on the credit limit of the credit card you’re transferring to. That maximum credit limit will depend heavily on your creditworthiness. Because of how these interact, your credit score will likely directly affect how much of your debt you can transfer.
Sometimes, the maximum you can transfer will be lower than your card’s credit limit. This is to account for the balance transfer fee, which normally adds 1-3% to the cost of the transfer.
Bottom line on credit card balance transfer offers
You can save a significant amount in interest if you sign up for a balance transfer credit card. Just keep in mind that you’ll typically only save money on the balance you transfer over and not on new purchases you make on your card. Learn more about how credit card balance transfers work and compare balance transfer credit cards in Canada to find the right fit for you.
Balance transfer credit cards FAQs
No, you can't usually do a balance transfer from one account to another under the same bank or credit card provider – or any of their affiliate partners for that matter. That said, you may want to call your provider directly to find out more about their regulations.
You may need to wait several days or weeks for your credit card issuer to process your balance transfer and liaise with your old credit card providers. In the meantime, you'll need to continue to make payments on your old cards until you're notified that the balance transfer has been processed.
There shouldn't be. However, you should pay attention to your balance transfer fee, the revert interest rate you'll have to pay after the promo period and any annual fees that apply to your new credit card. You may also want to keep an eye out for late fees and account inactivity fees.
The revert interest rate is the rate you'll have to pay when your promotional rate runs out. This rate will usually sit around 19.99% for most credit cards. That said, you may be able to get a balance transfer credit card that reverts to a lower interest rate. For example, the CIBC Select Visa Card lets you transition to a rate of 13.99% after a 0% interest welcome offer.
You may lose your promotional rate if you default on a payment with your new card. On top of late fees, the credit card provider could also charge a penalty APR that can be upwards of 30%. You should make sure to read your terms and conditions to find out more about how your provider deals with late payments.
Applying for a balance transfer credit card can cause your credit score to take a small dip. This is because applying for a new card will result in a hard inquiry on your credit report, which usually drops your score by around five points. That said, this negative effect is usually only temporary and you can typically regain those few points with regular on-time payments.
Two ways to narrow down your search for easy approval balance transfer cards are to find ones that openly list credit score requirements and allow you to get pre-approved for the card before lodging your official application.
You can view your credit score by contacting one of the two credit bureaus – Equifax or TransUnion – or by using a reputable website that gives you access to your credit score.
Pre-approval, which is sometimes called pre-qualification, essentially says that the provider accepts the information you've provided as being within at least some of its underwriting standards. However, pre-approval does not guarantee approval.
Yes. You can transfer multiple balances from several accounts over to your balance transfer card. Just be aware that there may be limits on how much you can transfer so you should check with your provider to find out more about your credit limit and available balance transfer room before you apply.
Follow these steps to transfer your debt from a credit card with a promotion that's about to end to a second balance transfer credit card.
Pay off as much as you can before the balance transfer promotional period ends on your first balance transfer card.
Compare balance transfer credit cards and carefully consider the length of the promotion and any fees on the card to determine whether it'll benefit you.
Double check the eligibility requirements for the card you're interested in. In addition, make sure you haven't had a credit card from the provider that you're interested in – or one of its affiliate companies. You usually can't transfer your debt to a provider that you've already had a card with.
Apply for a balance transfer credit card and enter your current credit card details when prompted by the online application, or call the number on the back of your new card once you receive it if you're not asked to balance transfer at the time of application.
Keep in mind that your second balance transfer will be subject to the credit card provider's lending criteria. This includes a credit check that will show your previous applications and current credit accounts — meaning they'll see when you applied for your first balance transfer card. This could raise red flags for them, possibly resulting in rejection.
Let's say you have a debt of $14,000, which you move to a new card that doesn't charge a balance transfer fee and has a 0% intro APR on balance transfers for six months. During the promotional period, you're able to pay the debt down to $11,000. Now that it's over, you'll start paying a 19% variable APR.
Here's how much you could save by transferring the balance again, assuming:
You're able to pay the debt down to $6,000 during the intro period.
The balance transfer fee brings the total debt to $11,330. That means it would take $5,330 to pay it down to $6,000.
Had you paid interest on the previous card during those six months, it would've run about $900. Meaning once you account for the balance transfer fee, the second transfer will have saved you about $570.
You should ideally do this at the time of application, or soon after you find out about your new card's approval.
This varies from one credit card issuer to the next. Most providers will allow you to transfer 85-100% of your credit limit. Keep in mind the amount you transfer will affect your credit score, as mentioned above.
Yes. Although your balance won't accrue interest during the promotional APR period, you'll still need to pay at least the minimum payment each month. The good news is that the full amount of your payment during that promotional period will be going towards your principal debt, so you'll be saving on interest and paying down your debt faster.
Applying for a balance transfer credit card is similar to applying for a regular credit card, where you'll need to provide your personal, financial and employment details. The only difference is that you may have to fill out an additional section in your application to give details about your balance transfer. Required details could include information on your current credit card debts, including the names of the providers that currently hold your debt, the account balances and the account numbers.
Click Go to site on this any of the cards on this page to apply for your desired balance transfer card. If you're approved, your debt could be automatically transferred to your new card. Once your debt has been moved, you can contact your old providers and close your old credit card accounts.
This is a fee you'll pay when you initiate a balance transfer. Typically, this fee will be 1.00-3.00% of the amount you transfer, with a certain minimum (for example, $5.00). Typically, your balance transfer fee will be added directly onto your transferred balance.
That said, some cards have no balance transfer fees at all. However, this is usually offset by a higher intro APR, an annual fee or a shorter intro period.
Most of the time, you will be able to transfer balances online — check with your card provider to see if this is an option.
No, you typically won't be able to conduct a balance transfer between accounts under the same provider. This is because a provider is not going to compete with themselves and offer you a lower rate on debt you already hold with them. However, you should check with your card provider for further information.
With reputable balance transfer cards, you won't find hidden fees per se, but it's essential that you read the card's terms and conditions in order to understand any possible charges. In particular, check for:
A balance transfer fee.
The APR you'll be charged after the promotional APR ends.
The annual fee of the card.
Depending on the card and your situation, these costs may add up to more than you might save by doing a balance transfer. Calculate all fees carefully before applying for any card.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
You’ve conducted a balance transfer, so now what? Follow these easy steps to manage your debt repayment and get the most from your balance transfer promotional offer.
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Why do credit card issuers offer low interest rates for balance transfers?
4 tips to help get you approved for the best balance transfer credit cards
