The very best steadiness switch bank cards in Canada for 2024

For those who carry a steadiness on an everyday bank card, chances are high you’re paying round 20% in curiosity. At that price, it may well develop into tough to maintain up with the funds and your debt can spike—quick. Transferring your bank card debt to a steadiness switch bank card may also help you repay the principal extra shortly by supplying you with entry to a decrease common rate of interest. Many steadiness switch playing cards supply a welcome bonus with an extra-low (and generally 0%) price for a restricted time. Try our picks for the most effective steadiness switch bank cards in Canada.

MBNA True Line Mastercard

At a look: With a 0% steadiness switch price for a full yr, the MBNA True Line Mastercard presents loads of runway to convey down your debt. This card doesn’t cost an annual price, which is one other benefit if you happen to’re working to repay an present steadiness.

Execs 

• The MBNA True Line Mastercard is a rarity amongst steadiness switch playing cards, providing a steadiness switch promotion with out charging an annual price—a great mixture for cardholders trying to save on each charges and curiosity. 
• A steadiness switch promo of 0% is as little as it will get, and this card’s supply lasts for a complete yr, the longest promotional interval of any card on this checklist. 
• Whereas many comparable playing cards require you to switch your steadiness straight away, the MBNA True Line presents better flexibility by supplying you with as much as 90 days after opening the account to finish the switch.
• Except for benefiting from the steadiness switch promo, there are different methods to avoid wasting on curiosity in your on a regular basis purchases. MBNA’s Month-to-month Cost Plan may also help you cut back curiosity on giant 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 price involves an finish, its common steadiness switch price is simply 12.99% (significantly decrease than the common of twenty-two.99% for different bank cards).

Cons 

• Whereas the MBNA True Line doesn’t have an annual price, it costs a switch price of three% on the transferred steadiness or a minimal of $7.5 (which means that you simply pay $30 for each $1,000 transferred). The three% switch price is the cardboard’s largest con and is notably increased than the opposite steadiness switch playing cards on this checklist.
• Although its buy and steadiness switch rates of interest are low, the MBNA True Line costs a excessive 24.99% APR on money advances.

CIBC Choose Visa Card

At a look: The CIBC Choose Visa Card presents a horny 13.99% rate of interest, even on money advances, and it has a 10-month steadiness switch supply of 0% curiosity and a low 1% steadiness switch price. A handful of different perks, like frequent provider accident insurance coverage and reductions on fuel, spherical out the bundle.

CIBC Choose Visa Card

Go to CIBC.com for extra particulars

• Annual price: $29
• Rates of interest: 13.99% on money advances, 13.99% on steadiness transfers
• Steadiness switch supply: Switch your bank card steadiness. Get 0% curiosity for as much as 10 months with a 1% switch price and a primary yr annual price rebate. Circumstances apply.

Go to CIBC.com for extra particulars

Execs 

• Whereas the CIBC Choose Visa does cost an annual price, the steadiness switch price is only one% (which means you pay simply $10 for each $1,000 transferred). For significantly giant balances, the switch price could be a enormous consider figuring out which card is best for you and is doubtlessly much more vital than the cardboard’s annual price.
• A uncommon and welcome addition for a low-interest card, the CIBC Choose Visa presents cardholders as much as $100,000 in frequent provider accident insurance coverage, which covers accidents occurred whereas touring inside a aircraft, cruise or different frequent provider types of transport. 
• If you hyperlink this card with Journie Rewards, it can save you as much as $0.10 per litre on fuel at taking part Pioneer, Fas Gasoline, Ultramar and Chevron fuel stations.

Cons 

• The cardboard’s steadiness switch promotion is for 10 months, which isn’t so long as the aforementioned MBNA True Line Mastercard.
• The steadiness you’re transferring can’t be over 50% of your whole authorized credit score restrict. Relying on the restrict you’re authorized for and the steadiness you propose to switch, your steadiness switch request could also be rejected.
• The cardboard’s common rate of interest on purchases and steadiness transfers is 13.99% (after the promo interval ends), which is barely increased in comparison with different playing cards on this checklist.

Scotiabank Worth Visa

At a look: For many who financial institution with Scotiabank, the Scotiabank Worth Visa presents an attractive steadiness switch choice. The annual price is a manageable $29, and the price is waived for the primary yr or waived altogether if in case you have Scotia’s Most popular or Final banking bundle. The 12.99% rate of interest is among the many lowest round, making it appropriate for consolidating your debt. 

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Scotiabank Worth Visa

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• Annual price: $29 (waived for the primary yr)
• Steadiness switch supply: 0% introductory rate of interest on steadiness transfers for the primary 10 months. Supply ends 31 October 2024.

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Execs 

• The Scotiabank Worth Visa costs a switch price of only one% or a minimal of $5 (which means that you simply pay simply $10 for each $1,000 transferred). For big balances specifically, this low switch price could be a enormous benefit.
• Except for the promotional steadiness switch supply, the Worth Visa has a low common curiosity of 12.99% on all card transactions together with money advances.
• Get a 25% low cost on rental automobiles at taking part Avis areas.
• Cardholders also can save on curiosity with the Scotia SelectPay Program, which helps you to break up giant purchases (of not less than $100) into extra manageable month-to-month installments (an rate of interest and installment price applies and varies by plan).

Cons 

• The cardboard’s steadiness switch promotion is ten months, which isn’t so long as the aforementioned MBNA True Line Mastercard.

BMO Most popular Charge Mastercard

At a look: BMO’s Most popular Charge 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 yr. The steadiness switch supply isn’t as sturdy as others on this checklist, however can nonetheless prevent cash in comparison with an everyday card.

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BMO Most popular Charge Mastercard

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• Annual price: $29 (waived for the primary yr)
• Rate of interest: 13.99% on purchases
• Welcome supply: You possibly can earn a 0.99% introductory rate of interest on Steadiness Transfers for 9 months with a 2% switch price and we’ll waive the $29 annual price for the primary yr*.
• Annual earnings requirement: $15,000 (private or family)

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Execs 

• The BMO Most popular Charge has a low annual price of $29, which is under common for a low-interest card.
• Except for the promotional steadiness switch supply, the BMO Most popular Charge has a low common rate of interest of 13.99% on purchases and 15.99% on money advances.

Cons 

• The cardboard’s largest disadvantage is that its steadiness switch promo price sits at 0.99%—different playing cards on this checklist supply switch charges of 0%. Additionally, the promotional interval lasts simply 9 months, and a 2% switch price applies.

What’s a steadiness switch?

A steadiness 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 aim 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 costs—so extra of your cash goes to the principal steadiness.

How does a steadiness switch work? 

A steadiness switch may also help you save on curiosity costs by shifting your bank card steadiness to a different card with a decrease rate of interest. To show how bank card steadiness transfers work, let’s examine the curiosity charged on an impressive bank card steadiness over time. 

Let’s say you’ve gotten a bank card with a steadiness of $4,000 and a 20.99% annual rate of interest. Each month, you make a $400 invoice cost. Must you stick to paying down the steadiness in your present card or switch the steadiness to a steadiness 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. 

On this case, you’d save $315.20 in curiosity ($435 – $120) and repay your debt two months quicker by transferring the steadiness to the MBNA steadiness switch bank card within the instance above. 

One factor to contemplate is the price related to the switch, which might vary from 1-3% of the overall steadiness you might be transferring to a different card. The price is likely to be small in comparison with the curiosity costs you might be paying, if in case you have a excessive steadiness in your bank card. 

When you have a comparatively small quantity in your card, like $1,500, however you discover you might be always carrying a steadiness and paying curiosity costs, contemplate swapping out your card for a low-interest bank card along with your present financial institution, or making use of for a brand new card at one other monetary establishment as an alternative. That means, you gained’t pay a steadiness switch price or further curiosity on the steadiness (till the steadiness switch promotion interval ends, so be 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 yr. 

For those who change to a different card along with your present financial institution, you may typically have the decrease rate of interest utilized to your present steadiness and cut back your whole curiosity costs. Take into account that in case your steadiness represents a considerable amount of your obtainable credit score on the brand new card, too, and your utilization ratio creeps above 30%, it might be worthwhile to look right into a steadiness switch bank card. It is because steadiness transfers normally solely have an effect on your credit score rating within the quick time period, and decreasing your credit score utilization ratio could be useful on your rating within the medium to long run. 

Instance of how a steadiness switch works with a small steadiness 

On this instance, you’d save $76, and it could solely take one much less month to repay your steadiness, so it might not make sense to make use of a steadiness switch. 

Methods to do a bank card steadiness switch

Steadiness transfers could be an efficient solution to consolidate and deal with debt. There are seven issues to contemplate earlier than you apply for a steadiness switch card.

1. Store round for the speed, timing and phrases that go well with you greatest
   For those who’re attempting to eradicate bank card debt, your greatest wager is likely to be a steadiness switch bank card. These playing cards include promotions that allow cardholders pay very low curiosity (generally as little as 0%) for a restricted time (like six or 10 months). These presents could be a actually efficient solution to convey down your debt quick, if you’re disciplined about making common funds and should not racking up loads of new purchases. The cardboard you select will rely largely on what’s obtainable if you’re trying, how lengthy you assume you’ll must repay your debt, and the cardboard’s different phrases.
2. Be sure you’re eligible for the steadiness 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 is not going to work between two playing cards from the identical financial institution. 
3. Timing is all the pieces
   Steadiness switch promotions can be found on the time that you simply make your utility or generally shortly thereafter. Be strategic about if 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.
4. Do not forget that steadiness switch promotions don’t final perpetually
   The low, single-digit charges obtainable on steadiness switch bank cards are limited-time presents. 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’ve gotten and the way shortly you propose to pay it off. However, normally, the most effective methods embody paying off the steadiness earlier than the steadiness switch supply ends and choosing a card with a low common rate of interest. This fashion, you’ll lower your expenses on curiosity even if you happen to nonetheless owe after the supply interval.
5. Make your minimal funds
   Even when benefiting from a steadiness switch supply, you need to make not less than the minimal cost on the cardboard, on time, every month. For those who don’t, that super-low promotional rate of interest can shortly be discontinued and the usual rate of interest will kick in nearly instantly. In different phrases, solely reap the benefits of a steadiness switch supply if in case you have the money readily available to make not less than the minimal cost every month and also you’re in the fitting monetary mindset to tackle debt compensation.
6. Steadiness switch charges
   Some—however not all—playing cards cost a price for steadiness transfers. This price is expressed as a share of the overall quantity you wish to transfer, and it normally ranges from 1% to three%. So, for instance, if you happen to’re trying to switch $1,000 in debt to a card with a 3% price, your opening steadiness will probably be $1,030. The extra value might be definitely worth the cash you’ll save on the new decrease rate of interest. However hold your eyes open for price offers: Often, a card will run a promotion the place the steadiness switch price is waived.
7. Separate your bills
   For those who cost a brand new buy to your steadiness switch bank card, this spend will probably be charged on the card’s common rate of interest if you happen to don’t pay on time, not the promotional price that’s utilized to the steadiness you’ve transferred. This may not appear to be a giant deal, particularly if you happen to’ve been fortunate sufficient to discover a card with a decrease common price, however there’s a further catch: Most bank cards apply funds to debt marked on the low or promotional price first, which implies your high-interest purchases are sitting there longer, racking up curiosity. For those who’re attempting to pay down debt, this solely compounds the issue. It’s good follow to depart your steadiness switch card at house and use a distinct monetary product (like debit, money or perhaps a totally different bank card) for brand spanking new purchases. 

Do you earn money again on steadiness transfers?

Like money advances or purchases of cash orders, steadiness transfers should not thought of to be purchases, so normally, they’re not eligible for money again rewards. There could also be some uncommon exceptions with sure promotional presents, however these are few and much between. That mentioned, 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 steadiness switch bank card affect my credit score rating?

If you apply for any bank card, you obtain a tough credit score inquiry that may quickly convey your credit score rating down a couple of factors. This contains steadiness switch playing cards. Nevertheless, this isn’t a cause to keep away from making use of. 

For those who’re trying right into a steadiness switch bank card, it’s probably since you’ve acquired some excellent bank card debt. Transferring that debt with the intention to cut back it can have a optimistic, lasting affect 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 steadiness, so you may cut 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 steadiness and the overall credit score restrict. Say you owe $600 on a bank card with a restrict of $2,000. Your credit score utilization could 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 injury your debt load does to your credit score rating far outweighs the small and short-term impact in your credit score rating brought on by a bank card utility. In relation to debt, all the time search for the longer-term answer.

Extra of Canada’s greatest bank cards: