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.
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.
| 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. |
| 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. |
| 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. |
| 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. |
| Rewards | N/A |
| 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 January 31, 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. |
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.
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.
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.
There are usually three types of interest rates you need to be aware of with balance transfer credit cards in Canada:
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.
You can typically make a second balance transfer to another card as long as it’s not with the same card issuer. This is referred to as “balance transfer kiting” and is a common practice (though it comes with some risks).
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.
Compare balance transfer credit cards
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.
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.
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.
Ask these questions to find out if a balance transfer is a good idea.
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.
There are three main fees to keep in mind when considering a balance transfer credit card:
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.
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.
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.
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%.
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.
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.
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.
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.
On the other hand, the Tangerine Money-Back Credit Card offers cash back rewards on all purchases.
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.
There are lots of deals available, so to help you pick the best balance transfer credit card, we recommend asking yourself these important questions:
Once you’ve answered these questions you should be well prepared to start comparing deals.
Compare the following features to find the right balance transfer credit card for your needs.
There are generally 4 eligibility requirements that credit card issuers look at to determine if you are approved for a balance transfer card:
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.
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.
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%.
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.
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:
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:
4 tips to help get you approved for the best balance transfer credit cardsCompare and apply for a balance transfer credit card
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:
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:
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.
Will cancelling a credit card affect my credit score
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:
Yes. Getting a balance transfer credit card can help your credit score because of 2 factors:
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.
There are a few easy steps you can follow to protect your credit during a balance transfer:
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.
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.
Calculate your interest savings with our free balance transfer credit card calculator.
Find out how to move your debt from a personal loan to a credit card.
Whether you want to move your debt to your partner’s account or you want to take on their debt, we explain how to open a joint account.
With a balance transfer and rewards program credit card, you can experience the best of both worlds. Get rewards while paying off your debt.
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.
