BMO Preferred Rate Mastercard Review

Our verdict

Our verdict

If you're struggling to repay a large debt or can't seem to catch up on your minimum monthly payments, the BMO Preferred Rate Mastercard could be a helpful card for you. You'll get a lower than usual purchase interest rate (13.99% compared to the average of 19.99%) and a balance transfer offer which can help you pay down your credit card debt faster.

Best for: Those who need to manage and pay down existing credit card debt.

Pros

• No annual fee for the card
• Low purchase interest rate of 13.99%
• Get a promo balance transfer rate of 0.99% for 9 months (a 2% applies). The rate thereafter is 15.99%.
• Easy card to qualify for

Cons

• You won't earn any rewards or cash back
• No travel insurance coverage

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Purchase Interest Rate

13.99%

Cash Advance Rate

15.99%

Balance Transfer Rate

0.99% for the first 9 months

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BMO Preferred Rate Mastercard

Learn more on BMO's secure site

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The basics

• Annual fee. Get the $29 annual fee waived in the first year.
• Low interest rates. This card comes with a purchase interest rate of 13.99% and a cash advance rate of 15.99%.
• Balance transfer offer. Get a promo balance transfer rate of 0.99% for 9 months (a 2% applies). The rate thereafter is 15.99%.
• Product coverage. Get purchase protection and extended warranty coverage on most products you buy with your card.

The perks

• Enhanced security. Safeguard your purchases with a PIN-protected microchip and Mastercard SecureCode.
• Zero-liability coverage. Relax with the knowledge that you won’t have to pay in case of fraudulent activity on your account.
• Easy to qualify. There are no annual income requirements, but you’ll need to be a resident of Canada to apply.
• Optional benefits. Pay an additional fee to get roadside assistance, balance protection or credit card alerts added on.

What to watch out for

• Annual fee. You’ll have to pay $29 per year for this card. Get the $29 annual fee waived in the first year.
• No rewards or cash back. The low interest rate replaces rewards or cash back as the main incentive.
• Few benefits. You won’t receive additional benefits like travel insurance, airport lounge access or special discounts on car rentals.

BMO Preferred Rate Mastercard interest rates

What should I know before I apply

• Eligibility requirements

  To apply for a BMO Preferred Rate Mastercard, you need to meet the following criteria:

  • Be a Canadian citizen or permanent resident who is at least 18 years old (19 in some provinces)

• Required documents and information

  • Your name, residential status and contact information.
  • Your social insurance number and date of birth.
  • Your email address and phone number.

How to apply

1. Click “Go to site” to be directed to your BMO Preferred Rate Mastercard application.
2. Complete the application with details that include your name, email address, social insurance number and birth date.
3. Review and submit your application.

Bottom line

The BMO Preferred Rate Mastercard is a low-interest card that offers upfront savings on outstanding balances for a low annual fee. It also comes with a low introductory balance rate as well as benefits like purchase protection and zero-liability insurance.

Frequently ask questions

• BMO Preferred Rate MasterCard have a welcome offer?

  Yes, depending on when you signup. Get a rate of 0.99% on balance transfers for 9 months with a 2% transfer fee. Plus, get the $29 annual fee waived in the first year.

• Does the same low interest rate apply to cash advances?

  Yes. You’ll only have to pay 13.99% interest on cash advances (which is around 10% less than what you would pay with other cards).

• Can I apply online?

  Yes, you can apply by visiting the BMO bank website, or you can simply click “Go to Site” in the table above to be redirected to an application.

Pictures: bmo.com/ca