0 Balance Transfer Credit Card Canada: A Comprehensive Review
Are you tired of paying high interest rates on your credit card debt? Do you want to consolidate your debt and save money on interest charges? If so, a 0 balance transfer credit card in Canada may be the perfect solution for you.
What is a 0 Balance Transfer Credit Card?
A 0 balance transfer credit card is a type of credit card that allows you to transfer your existing credit card debt to a new card with a 0% interest rate for a promotional period, usually ranging from 6 to 24 months. During this period, you can focus on paying off your principal debt without accruing any interest charges.
Benefits of 0 Balance Transfer Credit Cards in Canada
Save Money on Interest Charges
The most significant benefit of a 0 balance transfer credit card is the potential to save hundreds or even thousands of dollars on interest charges. By transferring your debt to a 0% interest rate card, you can avoid paying high interest rates on your existing credit card debt.
Consolidate Your Debt
If you have multiple credit cards with outstanding balances, a 0 balance transfer credit card can help you consolidate your debt into one manageable payment.
Improve Your Credit Score
By paying off your debt in a timely manner, you can improve your credit score, which can lead to better loan and credit offers in the future.
Top 0 Balance Transfer Credit Cards in Canada
1. Scotiabank Value Visa Card
- 0% interest rate for 6 months on balance transfers
- $29 annual fee
- 12.99% interest rate after promotional period
2. TD Cash Back Credit Card
- 0% interest rate for 6 months on balance transfers
- $79 annual fee
- 12.99% interest rate after promotional period
3. RBC Avion Visa Infinite Card
- 0% interest rate for 6 months on balance transfers
- $139 annual fee
- 12.99% interest rate after promotional period
Things to Consider
Balance Transfer Fee
Most credit cards with 0 balance transfer offers charge a balance transfer fee, which can range from 1% to 3% of the transferred amount.
Regular Interest Rate
After the promotional period, the regular interest rate will apply to your outstanding balance, which can be higher than the interest rate on your existing credit card.
Credit Score
You may need a good credit score to qualify for a 0 balance transfer credit card.
Conclusion
A 0 balance transfer credit card in Canada can be a great way to save money on interest charges and consolidate your debt. However, it's essential to carefully review the terms and conditions, including the balance transfer fee, regular interest rate, and credit score requirements, to ensure that you're getting the best deal for your financial situation.
