The 6 Best Balance Transfer Credit Cards in Canada

Owning a credit card means that you’ll likely pay high interest rates. The average interest rate on credit cards in Canada falls between 19% and 29%. This is extremely high if you don’t pay off your credit card balance in full and on time. If you ring up charge of $2,000 each month, you’ll pay between $380 and $580 per year in interest fees. This happens even if you use one of the best credit cards in Canada.

You can avoid paying those additional interest fees (or at least decrease them). In short, use a balance transfer credit card. We’ve selected the best balance transfer credit cards in Canada using our credit card comparison tool! However, after the offer ends, the regular interest rate will apply.

1. MBNA True Line Mastercard – 12 months at 0%

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The MBNA True Line Mastercard has a regular low-interest rate of 12.99%. The interest rate on cash advances is 24.99%. And with a 0% balance transfer rate for 12 months, no fees on balance transfers, and no annual fee, the MBNA True Line Mastercard can save you hundreds of dollars per year.

MBNA also has payment plans for purchases over $100, so you can pay large expenses at a pace you can afford without damaging your credit in the process. The MBNA True Line Mastercard can also help you save with Avis Rent-A-Car and Budget Rent-A-Car. You can save a minimum of 10% in Canada and 5% internationally.

This credit card is not available in Quebec.

Eligibility Requirements	MBNA True Line Mastercard
Credit Score (estimate)	660
Annual Income	N/A
Additional	Resident of Canada, Provincial age of majority

2. Scotiabank Value Visa Card – 10 months at 0%

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The Scotiabank Value Visa card can help you save hundreds of dollars in interest with a very low-interest rate of 12.99% on both purchases and cash advances, one of the lowest on the market today for.

The current welcome offer for the Scotiabank Value Visa Card is a 0% introductory interest rate on balance transfers for the first 10 months, with a fee of 1% on each transfer. On top of that, the $29 annual fee is waived for the first year. This offer may end or change after October 31, 2024.

The Scotiabank website features a calculator that helps you determine how much money you can save using the Scotiabank Value Visa card. For example, let’s say your credit card balance is $1,500 with an interest rate of $19.99%. By using the Scotiabank Value Visa card, you’ll be able to save $202 in interest in your first year.

Eligibility Requirements	Scotiabank Value Visa Card
Credit Score (estimate)	660
Annual Income	$12,000
Additional	Resident of Canada, Provincial age of majority Minimum credit limit of $500.

3. CIBC Select Visa – 10 months at 0%

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This card is particularly interesting because its transfer fee is only 1% (of the transfer amount), just like the previous card. In fact, it’s almost the same offer. So, if you transfer a high balance, you save money on the transfer fee with our top 3 picks.

You can transfer up to 50% of your assigned credit limit. The CIBC Select Visa, however, has an annual fee of $29 and no rewards benefits.

Eligibility Requirements	CIBC Select Visa
Credit Score (estimate)	660
Annual Income	$15,000
Additional	Resident of Canada, Provincial age of majority

4. Scotiabank Momentum No-Fee Visa Card – 6 months at 0%

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The Scotiabank Momentum No Fee Visa offers a promotional rate of 0% on balance transfers upon opening, but for 6 months. At the end of this period, the rate increases to 22.99%. The interest rate on purchases is 19.99%. You are also entitled to a 5% cash back on your purchases for 3 months, on up to $2,000 in purchases, as part of the welcome offer.

After the promotional offer, you can still continue to earn cash back on your purchases with this Scotiabank Momentum credit card. You get 1% back on eligible purchases at gas stations, grocery stores, pharmacies and on recurring payments. You get 0.5% back on all other purchases.

Eligibility Requirements	Scotiabank Momentum No-Fee Visa
Credit Score (estimate)	660
Annual Income	N/A
Additional	Resident of Canada, Provincial age of majority Minimum credit limit of $500 Excluded from the promotional offer: individuals who hold or have held a Scotia personal credit card in the last two years; Scotiabank employees.

5. BMO Cash Back Mastercard – 9 months at 0.99%

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The BMO Cash Back Mastercard comes with a welcome interest rate of 0.99% on balance transfers for nine months, on which a 2% fee is applied. A minimum of $100 is required for transfers. Afterwards, the interest rate will be the same as for cash advances: 21.99% for Quebec residents and 22.99% for the rest of Canada. Purchases have an interest rate of 20.99%. There is no annual fee for this card.

This card allows you to earn cash back on everyday purchases. A 3% regular cash back rate applies to grocery store purchases, while you get 1% cash back on recurring bill payments and 0.5% cash back on all other purchases. Consider the BMO Cash Back Mastercard if the cashback you expect is greater than the balance transfer fee.

Eligibility Requirements	BMO CashBack Mastercard
Credit Score (estimate)	600
Annual Income	N/A
Additional	Resident of Canada, Provincial age of majority

6. Tangerine Money-Back Credit Card – 6 months at 1.95%

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The Tangerine Money-Back Credit Card is a no-annual-fee card that offers an attractive introductory offer on balance transfers, with an interest rate of 1.95% for 6 months and a 1% transfer fee. At the end of this promotion, the interest rate increases to 19.95%.

As the name suggests, the Tangerine Money-Back Mastercard allows you to earn cash back on your purchases. You will receive 2% cash back on purchases in two categories of your choice from the following: groceries, home furnishings, restaurants, hotels and motels, gas, recurring bills, pharmacies, renovations, entertainment, and public transit and parking. On all other purchases, you will receive 0.5% cash back. You can customise the categories and tailor your card to match your spending habits.

One of the main benefits of this card is that the cash earned on your spending is automatically put towards your statement balance every month. Or, as an added bonus, you can deposit your rebates into a Tangerine savings account and earn an additional 2% cash back on a third category of everyday purchases of your choice. There are also no limits on how much cash back you can earn.

Eligibility Requirements	Tangerine Money-Back Credit Card
Credit Score (estimate)	660
Annual Income	$12,000
Additional	Resident of Canada, Provincial age of majority

How to choose the right balance transfer credit card

One way to choose the right balance transfer credit card is to shop around for balance transfer offers and compare the various terms. On average, promotional balance transfer rates are around 2% for a period of six months. This may seem like a reasonable period of time but after the promotional period ends, the interest rate returns to its usual higher level. Even though the transfer interest rates are relatively low, it’s important to also look at each card’s regular interest rate to avoid surprises once the promotion ends. One other aspect to consider when selecting the best credit card to transfer a balance onto is the transfer fee. These are the additional fees charged when you transfer your balance onto this credit card and they’ll be included in your balance. They can vary between 1% and 3% of the amount transferred. Lastly, some banks may require a minimum credit score when applying for a new balance transfer credit card.

Things to avoid with balance transfer credit cards

A balance transfer credit card should only be used for balance transfers. It is, therefore, best to avoid making purchases with it, since the interest rate on purchases is usually much higher. Chances are, if you need such a card, you may not be able to pay your balances in full. Adding interest to your purchases may put you further in debt.

Make sure you are consistent in your payments, even if you only make the minimum payment required per month. Failure to pay during the promotion could result in a much higher interest rate, which is the opposite of what you are looking for.

If you have overestimated the time it will take to pay off your debts and your card promotion is coming to an end, it is possible to transfer your balance back to another card. However, avoid making this a habit, as too many applications can affect your credit score and ultimately have a negative impact on your ability to access credit.

Balance transfer credit cards are a temporary solution to reduce interest on your credit card balances. If you need a more permanent tool to keep you out of debt, a prepaid card may be another solution.