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Best balance transfer credit cards in Canada
Quick look at the best balance transfer cards from the Finder Awards
With the BMO AIR MILES Mastercard, you'll earn Air Miles while enjoying a $0 annual fee. Get 3x the AIR MILES for every $25 spent at eligible AIR MILES partners, and 1 AIR MILE for every $25 spent elsewhere. Plus, this card comes with an appealing balance transfer offer. Get a rate of 1.99% on balance transfers for 9 months. A 1% transfer fee will be charged for each transferred balance.
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.
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.
What to watch out for
You'll pay a relatively high purchase interest rate of 20.97% with this card.
There are no additional benefits like travel medical or roadside assistance on offer with this card.
Plus, get a 0.00% introductory interest rate on balance transfers for the first 6 months with no balance transfer fee. Apply by August 31, 2022. 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.
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 an extra 10% cash back (up to $100) on up to $1,000 of everyday purchases in the first 2 months Until May 31, 2022.
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).
What to watch out for
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.
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.
How does a balance transfer work?
Balance transfer credit cards allow you to transfer existing debt to a different credit card which charges a lower – or no – interest for a set period of time. Some lenders also allow you to transfer other types of debt, like loans. A balance transfer can help you save hundreds – or even thousands – of dollars in interest.
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.
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.
Am I eligible for the best balance transfer cards?
Realistically, the longest intro period deals are reserved for those with excellent credit. Some card issuers even tailor offers to the individual applicant, so if your credit history is limited or damaged, you may find you’re accepted for a card, but offered a shorter intro period deal or a higher interest rate.
Make sure you at least meet the basic eligibility requirements for any card you’re interested in. That way you won’t waste the time applying, and lowering your credit score from a hard credit check. Some credit card issuers allow you to see your chances of approval for their cards by doing a soft credit pull, which won’t impact your credit score.
Compare more balance transfer credit cards in Canada
Use the table below to compare a range of balance transfer credit cards available in Canada. Once you’ve narrowed down your options, click the “Got to site” button to apply.
Calculate how much you could save
Here’s how to use the calculator:
Credit Card Info. Enter your current total debt and the rate offered on a balance transfer card to see how much you’d pay in interest alone.
Calculate Months to Payoff. Input the amount you pay monthly to see how long it’ll take you to pay off your debt.
Calculate Monthly Payment. Enter the number of months the promotional rate is offered for. This will show you how much your monthly payment will be and the total amount of interest you’ll pay.
Things to avoid with balance transfers
While a balance transfer credit card comes with many benefits, there are a few things you should look out for:
You may not be able to transfer debts between cards offered by the same bank or any of its partners. That’s because banks are not going to compete with themselves.
Don’t balance transfer too often as this can negatively affect your credit score. Remember, there are only so many banks you can apply for balance transfer cards with before you run out of options.
Avoid paying only the minimum repayment since this defeats the purpose of attempting to slash your debt quickly with a 0% or low interest rate.
Mark down on a calendar when the promotional interest rate ends and don’t forget the date. Your revert rate will kick in once this promotional period runs out and your debt will start to accrue interest at a much higher rate.
Avoid using your balance transfer credit card for purchases since you’ll be charged the revert rate on any new purchases that you make. Use the 0% or low interest period to focus on paying down your debt.
Bottom line
Make sure you understand what makes a balance transfer offer a good deal before choosing a card to apply for. Consider the length of the intro period and the intro interest rate to make sure you find the right balance transfer credit card for you.
Frequently asked questions about the best balance transfer credit cards
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.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
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