In case you carry a stability on a daily bank card, chances are high you’re paying round 20% in curiosity. At that charge, it may turn out to be tough to maintain up with the funds and your debt can spike—quick.
Transferring your bank card debt to a stability switch bank card may help you repay the principal extra shortly by providing you with entry to a decrease common rate of interest. Many stability switch playing cards supply a welcome bonus with an extra-low (and typically 0%) charge for a restricted time. Take a look at our picks for the most effective stability switch bank cards in Canada.
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Evaluate your choices with our interactive device and get a way of how a lot you might save on curiosity relying on the scale of your stability.
The very best stability switch playing cards in Canada
Discovering the precise stability switch bank card could make an enormous distinction in managing your debt and saving on curiosity. Whether or not you’re in search of a low introductory rate of interest, a minimal stability switch price, or a low or no annual price, we’ve rounded up the most effective stability switch bank cards in Canada that will help you select the one that matches your wants.
| Finest card by class | Highlights | Particulars | Eligibility necessities |
|---|---|---|---|
| FEATURED MBNA True Line Mastercard  GO TO SITE |
Steadiness switch supply: 0% curiosity for 12 months
Switch price: 3% of stability transferred |
Annual price: $0
Common rates of interest: 12.99% on purchases, 24.99% on money advances, and 17.99% on stability transfers |
Earnings: None specified
Credit score rating: 660 or larger Circumstances: Provide not out there to Quebec residents |
CIBC Choose Visa LEARN MORE |
Steadiness switch supply: 0% curiosity for as much as 10 months
Switch price: 1% of stability transferred |
Annual price: $29
Common rates of interest: 13.99% on purchases, 13.99% on money advances, 13.99% on stability transfers |
Earnings: $15,000
Credit score rating: 660 or larger |
| FEATURED Scotiabank Worth Visa  GO TO SITE |
Steadiness switch supply: 0% curiosity for 10 months
Switch price: 1% of stability transferred |
Annual price: $29 (waived first 12 months)
Common rates of interest: 13.99% on purchases, 13.99% on money advances, 13.99% on stability transfers |
Earnings: $12,000
Credit score rating: 725 or larger |
| FEATURED BMO Most well-liked Fee Mastercard  GO TO SITE |
Steadiness switch supply: 0.99% curiosity for 9 months
Switch price: 2% of stability transferred |
Annual price: $29
Common rates of interest: 13.99% on purchases, 15.99% on money advances, 15.99% on stability transfers |
Earnings: $15,000 (private or family)
Credit score rating: 660 or larger |
MBNA True Line Mastercard
At a look: With a 0% stability switch charge for a full 12 months, the MBNA True Line Mastercard gives a variety of runway to deliver down your debt. This card doesn’t cost an annual price, which is one other benefit in case you’re working to repay an present stability.
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MBNA True Line Mastercard
Annual price: $0
Low rate of interest: 12.99%
Steadiness switch supply: earn a 0% promotional annual rate of interest (“AIR”) for 12 months on stability transfers accomplished inside 90 days of account opening, with a 3% switch price. This supply just isn’t out there for residents of Quebec.
Card particulars
| Rates of interest | 24.99% on money advances, 17.99% on stability transfers |
| Earnings required | None specified |
| Credit score rating | 660 or larger |
Execs
- The MBNA True Line Mastercard is a rarity amongst stability switch playing cards, providing a stability switch promotion with out charging an annual price—a really perfect mixture for cardholders trying to save on each charges and curiosity.
- A stability switch promo of 0% is as little as it will get, and this card’s supply lasts for a whole 12 months, the longest promotional interval of any card on this record.
- Whereas many comparable playing cards require you to switch your stability straight away, the MBNA True Line gives larger flexibility by providing you with as much as 90 days after opening the account to finish the switch.
- Except for benefiting from the stability switch promo, there are different methods to avoid wasting on curiosity in your on a regular basis purchases. MBNA’s Month-to-month Fee Plan may help you scale back curiosity on massive purchases (these of not less than $100) by breaking funds into smaller, extra manageable chunks over longer intervals of time (6, 12 or 18 months).
- Even after the cardboard’s 0% promotional charge involves an finish, its common stability switch charge is simply 17.99% (significantly decrease than the typical of twenty-two.99% for different bank cards).
Cons
- Whereas the MBNA True Line doesn’t have an annual price, it expenses a switch price of three% on the transferred stability or a minimal of $7.5 (that means that you simply pay $30 for each $1,000 transferred). The three% switch price is the cardboard’s largest con and is notably larger than the opposite stability switch playing cards on this record.
- Although its buy and stability switch rates of interest are low, the MBNA True Line expenses a excessive 24.99% APR on money advances.
CIBC Choose Visa Card
At a look: The CIBC Choose Visa Card gives a sexy 13.99% rate of interest, even on money advances, and it has a 10-month stability switch supply of 0% curiosity and a low 1% stability switch price. A handful of different perks, like widespread provider accident insurance coverage and reductions on gasoline, spherical out the package deal.
CIBC Choose Visa
Annual price: $29
Low rate of interest: 13.99% on purchases
Steadiness switch supply: Switch your bank card stability. Get 0% curiosity for as much as 10 months with a 1% switch price and a two 12 months annual price rebate. Phrases and circumstances apply.
Card particulars
| Rates of interest | 13.99% on purchases, 13.99% on money advances, 13.99% on stability transfers |
| Earnings required | $15,000 per 12 months |
| Credit score rating | 660 or larger |
Execs
- Whereas the CIBC Choose Visa does cost an annual price, the stability switch price is just one% (that means you pay simply $10 for each $1,000 transferred). For significantly massive balances, the switch price could be a big consider figuring out which card is best for you and is probably much more necessary than the cardboard’s annual price.
- A uncommon and welcome addition for a low-interest card, the CIBC Choose Visa gives cardholders as much as $100,000 in widespread provider accident insurance coverage, which covers accidents occurred whereas touring inside a aircraft, cruise or different widespread provider types of transport.
- If you hyperlink this card with Journie Rewards, it can save you as much as $0.10 per litre on gasoline at collaborating Pioneer, Fas Gasoline, Ultramar and Chevron gasoline stations.
Cons
- The cardboard’s stability switch promotion is for 10 months, which isn’t so long as the aforementioned MBNA True Line Mastercard.
- The stability you’re transferring can’t be over 50% of your whole accredited credit score restrict. Relying on the restrict you’re accredited for and the stability you intend to switch, your stability switch request could also be rejected.
- The cardboard’s common rate of interest on purchases and stability transfers is 13.99% (after the promo interval ends), which is barely larger in comparison with different playing cards on this record.
Scotiabank Worth Visa
At a look: For many who financial institution with Scotiabank, the Scotiabank Worth Visa gives an attractive stability switch possibility. The annual price is a manageable $29, and the price is waived for the primary 12 months or waived altogether you probably have Scotia’s Most well-liked or Final banking package deal. The 13.99% rate of interest is among the many lowest round, making it appropriate for consolidating your debt.
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Scotiabank Worth Visa
Annual price: $29 (waived first 12 months)
Steadiness switch supply: 0% curiosity for 10 months.
Card particulars
| Rates of interest | 13.99% on purchases, 13.99% on money advances, 13.99% on stability transfers |
| Earnings required | $12,000 per 12 months |
| Credit score rating | 725 or larger |
BMO Most well-liked Fee Mastercard
At a look: BMO’s Most well-liked Fee Mastercard comes with a low common rate of interest of 13.99% and an annual price of solely $29, which is waived for the primary 12 months. The stability switch supply isn’t as sturdy as others on this record, however can nonetheless prevent cash in comparison with a daily card.
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BMO Most well-liked Fee Mastercard
Annual price: $29
Low rate of interest: 13.99% on purchases
Welcome supply: get a 0.99% introductory rate of interest on stability transfers for 9 months with a 2% switch price
Card particulars
| Rates of interest | 15.99% on money advances, 15.99% on stability transfers |
| Earnings required | $15,000 (private or family) |
| Credit score rating | 660 or larger |
How we decide the most effective stability switch playing cards
The MoneySense editors apply their bank card experience and data of Canadians’ monetary objectives to provide you with choice standards that matches the wants of the supposed cardholder. With stability switch bank cards, the important thing issues are the size and charge of the stability switch promotion, in addition to the stability switch price. Our rankings are an unbiased supply of data for Canadians. The addition of hyperlinks from affiliate companions has no bearing on the outcomes. Learn extra about our choice course of and about how MoneySense makes cash.
What’s a stability switch?
A stability switch is the switch of debt from one bank card to a different. Though a cardholder can switch their debt for a wide range of causes, the purpose is normally to chop down on the quantity of curiosity charged and to repay the mortgage quicker.
As most everyday-use bank cards command an rate of interest of round 20%, your principal debt load can bloat shortly. By transferring debt to a card with a decrease rate of interest, you’ll incur decrease curiosity expenses—so extra of your cash goes to the principal stability.
How does a stability switch work?
A stability switch may help you save on curiosity expenses by shifting your bank card stability to a different card with a decrease rate of interest. To show how bank card stability transfers work, let’s evaluate the curiosity charged on an impressive bank card stability over time.
Let’s say you will have a bank card with a stability of $4,000 and a 20.99% annual rate of interest. Each month, you make a $400 invoice cost. Must you keep on with paying down the stability in your present card or switch the stability to a stability switch card with a decrease rate of interest? For this instance, we’ll use the MBNA True Line Mastercard, which comes with a 0% promotional rate of interest for 12 months and a 3% switch price.
| Common bank card | Steadiness switch bank card | |
| Preliminary bank card stability | $4,000 | $4,000 |
| Buy rate of interest | 20.99% | 0% for 1 12 months |
| Month-to-month cost | $400 | $400 |
| Steadiness switch price | N/A | $120 (3% of your preliminary stability) |
| Months required to repay stability | 12 | 10 |
| Complete curiosity paid over time | $435.20 | $0 |
| Complete price | $435.20 | $120 |
On this case, you’d save $315.20 in curiosity ($435 – $120) and repay your debt two months quicker by transferring the stability to the MBNA stability switch bank card within the instance above.
One factor to contemplate is the price related to the switch, which may vary from 1-3% of the whole stability you’re transferring to a different card. The price could be small in comparison with the curiosity expenses you’re paying, you probably have a excessive stability in your bank card.
If in case you have a comparatively small quantity in your card, like $1,500, however you discover you’re always carrying a stability and paying curiosity expenses, contemplate swapping out your card for a low-interest bank card together with your present financial institution, or making use of for a brand new card at one other monetary establishment as a substitute. That means, you received’t pay a stability switch price or further curiosity on the stability (till the stability switch promotion interval ends, so make certain to pay it off earlier than then). Some card issuers will even rebate or waive your new card’s annual price for the primary 12 months.
In case you change to a different card together with your present financial institution, you possibly can typically have the decrease rate of interest utilized to your present stability and scale back your whole curiosity expenses. Remember that in case your stability represents a considerable amount of your out there credit score on the brand new card, too, and your utilization ratio creeps above 30%, it might be worthwhile to look right into a stability switch bank card. It’s because stability transfers normally solely have an effect on your credit score rating within the quick time period, and decreasing your credit score utilization ratio will be useful on your rating within the medium to long run.
Instance of how a stability switch works with a small stability
| Common bank card | Steadiness switch bank card | |
| Bank card stability | $1,500 | $1,500 |
| Buy rate of interest | 20.99% | 0% for 1 12 months |
| Month-to-month funds | $200 | $200 |
| Steadiness switch price | N/A | $45 (3% of your preliminary stability) |
| Months required to repay stability | 9 | 8 |
| Complete curiosity paid over time | $121.96 | $0 |
| Complete price | $121.96 | $45 |
On this instance, you’d save $76, and it might solely take one much less month to repay your stability, so it might not make sense to make use of a stability switch.
do a bank card stability switch?
Steadiness transfers will be an efficient method to consolidate and deal with debt. There are seven issues to contemplate earlier than you apply for a stability switch card.
- Store round for the speed, timing and phrases that go well with you finest
In case you’re making an attempt to remove bank card debt, your finest guess could be a stability switch bank card. These playing cards include promotions that permit cardholders pay very low curiosity (typically as little as 0%) for a restricted time (like six or 10 months). These gives could be a actually efficient method to deliver down your debt quick, in case you are disciplined about making common funds and will not be racking up a variety of new purchases. The cardboard you select will rely largely on what’s out there while you’re wanting, how lengthy you suppose you’ll must repay your debt, and the cardboard’s different phrases. - Ensure you’re eligible for the stability switch
Steadiness switch promotions are solely legitimate when shifting debt from a bank card at one financial institution to a card at one other financial institution. It won’t work between two playing cards from the identical financial institution. - Timing is all the pieces
Steadiness switch promotions can be found on the time that you simply make your utility or typically shortly thereafter. Be strategic about while you apply, and ensure you’re ready to make the switch. Which means having the bank card firm title, your title because it seems on the cardboard, the debt whole and the bank card quantity. - Keep in mind that stability switch promotions don’t final endlessly
The low, single-digit charges out there on stability switch bank cards are limited-time gives. As soon as the promotional interval is over, the playing cards’ common rates of interest will kick in, which can have an effect on your month-to-month funds. The way you deal with it will rely upon the quantity of debt you will have and the way shortly you intend to pay it off. However, basically, the most effective methods embody paying off the stability earlier than the stability switch supply ends and selecting a card with a low common rate of interest. This fashion, you’ll lower your expenses on curiosity even in case you nonetheless owe after the supply interval. - Make your minimal funds
Even when benefiting from a stability switch supply, you will need to make not less than the minimal cost on the cardboard, on time, every month. In case you don’t, that super-low promotional rate of interest can shortly be discontinued and the usual rate of interest will kick in virtually instantly. In different phrases, solely benefit from a stability switch supply you probably have the money readily available to make not less than the minimal cost every month and also you’re in the precise monetary mindset to tackle debt reimbursement. - Steadiness switch charges
Some—however not all—playing cards cost a price for stability transfers. This price is expressed as a share of the whole quantity you wish to transfer, and it normally ranges from 1% to three%. So, for instance, in case you’re trying to switch $1,000 in debt to a card with a 3% price, your opening stability shall be $1,030. The extra price might be well worth the cash you’ll save on the new decrease rate of interest. However maintain your eyes open for price offers: Sometimes, a card will run a promotion the place the stability switch price is waived. - Separate your bills
In case you cost a brand new buy to your stability switch bank card, this spend shall be charged on the card’s common rate of interest in case you don’t pay on time, not the promotional charge that’s utilized to the stability you’ve transferred. This may not appear to be an enormous deal, particularly in case you’ve been fortunate sufficient to discover a card with a decrease common charge, however there’s a further catch: Most bank cards apply funds to debt marked on the low or promotional charge first, which implies your high-interest purchases are sitting there longer, racking up curiosity. In case you’re making an attempt to pay down debt, this solely compounds the issue. It’s good follow to depart your stability switch card at dwelling and use a unique monetary product (like debit, money or perhaps a completely different bank card) for brand new purchases.
Do you earn money again on stability transfers?
Like money advances or purchases of cash orders, stability transfers will not be thought-about to be purchases, so basically, they’re not eligible for money again rewards. There could also be some uncommon exceptions with sure promotional gives, however these are few and much between. That stated, the curiosity saved by shifting your debt to a card with a decrease rate of interest will far outweigh the worth of most money again returns.
How does a stability switch bank card impression my credit score rating?
If you apply for any bank card, you obtain a tough credit score inquiry that may quickly deliver your credit score rating down just a few factors. This contains stability switch playing cards. Nevertheless, this isn’t a motive to keep away from making use of.
In case you’re wanting right into a stability switch bank card, it’s seemingly since you’ve bought some excellent bank card debt. Transferring that debt with a view to scale back it is going to have a constructive, lasting impression in your credit score rating within the medium to long run.
The decrease rate of interest means extra of your cash goes to paying down the stability, so you possibly can scale back your debt load quicker. A smaller debt load can enhance your credit score rating as a result of it lowers your credit score utilization—a significant credit score rating issue that measures the ratio between the stability and the whole credit score restrict. Say you owe $600 on a bank card with a restrict of $2,000. Your credit score utilization can be 30%. Having a credit score utilization rating of 30% or decrease is taken into account good.
When you think about all the pieces, the harm your debt load does to your credit score rating far outweighs the small and non permanent impact in your credit score rating attributable to a bank card utility. In the case of debt, at all times search for the longer-term resolution.
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