In case you carry a stability on an everyday bank card, likelihood is you’re paying round 20% in curiosity. At that charge, it may possibly change into tough to maintain up with the funds and your debt can spike—quick.
Shifting your bank card debt to a stability switch bank card will 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 generally 0%) charge for a restricted time. Take a look at our picks for the perfect stability switch bank cards in Canada.
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Examine your choices with our interactive device and get a way of how a lot you would save on curiosity relying on the dimensions of your stability.
The most effective stability switch playing cards in Canada
Discovering the suitable stability switch bank card could make a giant distinction in managing your debt and saving on curiosity. Whether or not you’re on the lookout for a low introductory rate of interest, a minimal stability switch price, or a low or no annual price, we’ve rounded up the perfect stability switch bank cards in Canada that can assist you select the one that matches your wants.
| Greatest card by class | Highlights | Particulars | Eligibility necessities |
|---|---|---|---|
| FEATURED MBNA True Line Mastercard  GO TO SITE |
Stability 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 |
Revenue: None specified
Credit score rating: 660 or greater Circumstances: Provide not accessible to Quebec residents |
CIBC Choose Visa LEARN MORE |
Stability 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 |
Revenue: $15,000
Credit score rating: 660 or greater |
| FEATURED Scotiabank Worth Visa  GO TO SITE |
Stability 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 |
Revenue: $12,000
Credit score rating: 725 or greater |
| FEATURED BMO Most popular Fee Mastercard  GO TO SITE |
Stability 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 |
Revenue: $15,000 (private or family)
Credit score rating: 660 or greater |
MBNA True Line Mastercard
At a look: With a 0% stability switch charge for a full 12 months, the MBNA True Line Mastercard provides plenty of runway to deliver down your debt. This card doesn’t cost an annual price, which is one other benefit when 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%
Stability 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 isn’t accessible for residents of Quebec.
Card particulars
| Rates of interest | 24.99% on money advances, 17.99% on stability transfers |
| Revenue required | None specified |
| Credit score rating | 660 or greater |
Professionals
- 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 great 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 instantly, the MBNA True Line provides better flexibility by providing you with as much as 90 days after opening the account to finish the switch.
- Apart from benefiting from the stability switch promo, there are different methods to save lots of on curiosity in your on a regular basis purchases. MBNA’s Month-to-month Fee Plan will help you cut back curiosity on massive purchases (these of not less than $100) by breaking funds into smaller, extra manageable chunks over longer durations 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 common of twenty-two.99% for different bank cards).
Cons
- Whereas the MBNA True Line doesn’t have an annual price, it fees 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 greatest con and is notably greater 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 fees a excessive 24.99% APR on money advances.
CIBC Choose Visa Card
At a look: The CIBC Choose Visa Card provides a horny 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 frequent service 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
Stability 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 |
| Revenue required | $15,000 per 12 months |
| Credit score rating | 660 or greater |
Professionals
- 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 notably massive balances, the switch price could be a large think about 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 provides cardholders as much as $100,000 in frequent service accident insurance coverage, which covers accidents occurred whereas touring inside a airplane, cruise or different frequent service types of transport.
- While you hyperlink this card with Journie Rewards, it can save you as much as $0.10 per litre on gasoline at taking part 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 complete authorised credit score restrict. Relying on the restrict you’re authorised for and the stability you propose 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 greater 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 provides an attractive stability switch choice. 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 popular 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)
Stability 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 |
| Revenue required | $12,000 per 12 months |
| Credit score rating | 725 or greater |
BMO Most popular Fee Mastercard
At a look: BMO’s Most popular 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 robust as others on this record, however can nonetheless prevent cash in comparison with an everyday card.
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BMO Most popular 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 |
| Revenue required | $15,000 (private or family) |
| Credit score rating | 660 or greater |
How we decide the perfect stability switch playing cards
The MoneySense editors apply their bank card experience and information of Canadians’ monetary targets to give you choice standards that matches the wants of the supposed cardholder. With stability switch bank cards, the important thing concerns 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 objective is normally to chop down on the quantity of curiosity charged and to repay the mortgage sooner.
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 fees—so extra of your cash goes to the principal stability.
How does a stability switch work?
A stability switch will help you save on curiosity fees by shifting your bank card stability to a different card with a decrease rate of interest. To exhibit how bank card stability transfers work, let’s examine the curiosity charged on an impressive bank card stability over time.
Let’s say you could 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 persist 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 | Stability 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 |
| Stability switch price | N/A | $120 (3% of your preliminary stability) |
| Months required to repay stability | 12 | 10 |
| Whole curiosity paid over time | $435.20 | $0 |
| Whole value | $435.20 | $120 |
On this case, you’d save $315.20 in curiosity ($435 – $120) and repay your debt two months sooner by transferring the stability to the MBNA stability switch bank card within the instance above.
One factor to think about is the price related to the switch, which might vary from 1-3% of the overall stability you might be transferring to a different card. The price is likely to be small in comparison with the curiosity fees you might be paying, you probably have a excessive stability in your bank card.
You probably have a comparatively small quantity in your card, like $1,500, however you discover you might be consistently carrying a stability and paying curiosity fees, think about 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 approach, you gained’t pay a stability switch price or extra curiosity on the stability (till the stability 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 12 months.
In case you swap to a different card together with your present financial institution, you’ll be able to typically have the decrease rate of interest utilized to your present stability and cut back your complete curiosity fees. Remember the fact that in case your stability represents a considerable amount of your accessible 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 may be helpful to your rating within the medium to long run.
Instance of how a stability switch works with a small stability
| Common bank card | Stability 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 |
| Stability switch price | N/A | $45 (3% of your preliminary stability) |
| Months required to repay stability | 9 | 8 |
| Whole curiosity paid over time | $121.96 | $0 |
| Whole value | $121.96 | $45 |
On this instance, you’d save $76, and it will 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?
Stability transfers may be an efficient option to consolidate and tackle debt. There are seven issues to think about 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 attempting to get rid of bank card debt, your finest wager is likely to be a stability switch bank card. These playing cards include promotions that permit cardholders pay very low curiosity (generally as little as 0%) for a restricted time (like six or 10 months). These provides could be a actually efficient option to deliver down your debt quick, in case you are disciplined about making common funds and are usually not racking up plenty of new purchases. The cardboard you select will rely largely on what’s accessible if you’re wanting, how lengthy you suppose you’ll have to repay your debt, and the cardboard’s different phrases. - Be sure to’re eligible for the stability switch
Stability 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 every thing
Stability switch promotions can be found on the time that you simply make your software 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 identify, your identify because it seems on the cardboard, the debt complete and the bank card quantity. - Do not forget that stability switch promotions don’t final eternally
The low, single-digit charges accessible on stability switch bank cards are limited-time provides. 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 this can rely on the quantity of debt you could have and the way shortly you propose to pay it off. However, usually, the perfect methods embrace paying off the stability earlier than the stability switch supply ends and choosing a card with a low common rate of interest. This manner, you’ll get monetary savings on curiosity even when you nonetheless owe after the supply interval. - Make your minimal funds
Even when making the most of a stability switch supply, it’s essential 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 reap the benefits of 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 suitable monetary mindset to tackle debt compensation. - Stability switch charges
Some—however not all—playing cards cost a price for stability transfers. This price is expressed as a proportion of the overall quantity you need to transfer, and it normally ranges from 1% to three%. So, for instance, when you’re trying to switch $1,000 in debt to a card with a 3% price, your opening stability might be $1,030. The extra value could 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 stability switch price is waived. - Separate your bills
In case you cost a brand new buy to your stability switch bank card, this spend might be charged on the card’s common rate of interest when you don’t pay on time, not the promotional charge that’s utilized to the stability you’ve transferred. This may not look like a giant deal, particularly when 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 attempting to pay down debt, this solely compounds the issue. It’s good apply to go away your stability switch card at dwelling and use a special monetary product (like debit, money or perhaps a completely different bank card) for brand spanking new purchases.
Do you earn money again on stability transfers?
Like money advances or purchases of cash orders, stability transfers are usually not thought of to be purchases, so usually, they’re not eligible for money again rewards. There could also be some uncommon exceptions with sure promotional provides, 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?
While you apply for any bank card, you obtain a tough credit score inquiry that may quickly deliver your credit score rating down a couple of factors. This consists of stability switch playing cards. Nonetheless, 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 possible since you’ve acquired some excellent bank card debt. Shifting that debt with a purpose to cut back it’ll 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’ll be able to cut back your debt load sooner. A smaller debt load can enhance your credit score rating as a result of it lowers your credit score utilization—a serious credit score rating issue that measures the ratio between the stability and the overall 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 every thing, the harm your debt load does to your credit score rating far outweighs the small and momentary impact in your credit score rating attributable to a bank card software. On the subject of debt, at all times search for the longer-term answer.
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