Best 0 Balance Transfer Credit Card Offers in Canada
Are you carrying a balance on your existing credit cards and looking for a way to save on interest charges? A balance transfer credit card can help you consolidate your debt and potentially save money. Here's a guide to the best 0% balance transfer credit card offers available in Canada:
What is a Balance Transfer Credit Card?
A balance transfer credit card allows you to transfer a balance from another credit card to a new card, often with a promotional interest rate of 0% for a specific period. This "introductory period" can range from 6 to 12 months or even longer. After the promotional period ends, the regular interest rate on the transferred balance kicks in.
Why Choose a 0% Balance Transfer Credit Card?
- Save Money on Interest: By transferring your balance to a 0% card, you can avoid paying interest charges for a set period, allowing you to focus on paying down the principal.
- Consolidate Debt: If you have multiple credit cards with balances, a balance transfer card can help you simplify your debt management and potentially make it easier to pay off your debts faster.
- Improve Credit Utilization: By transferring your balance to a new card, you may be able to reduce your overall credit utilization, which can positively impact your credit score.
Best 0% Balance Transfer Credit Card Offers in Canada
Here are some of the top 0% balance transfer credit cards available in Canada, based on features and terms:
1. Scotiabank Momentum Visa Infinite Card
- Intro APR: 0% for 12 months on balance transfers
- Regular APR: 19.99%
- Annual Fee: $120
- Benefits: Travel insurance, extended warranty, purchase protection, and a rewards program.
2. BMO Mastercard® with Rewards
- Intro APR: 0% for 6 months on balance transfers
- Regular APR: 19.99%
- Annual Fee: $99
- Benefits: BMO Rewards points that can be redeemed for travel, merchandise, and cash back.
3. CIBC Dividend Visa Infinite Card
- Intro APR: 0% for 6 months on balance transfers
- Regular APR: 19.99%
- Annual Fee: $120
- Benefits: Dividend points on purchases that can be redeemed for travel, merchandise, and cash back.
4. Tangerine Money-Back Credit Card
- Intro APR: 0% for 6 months on balance transfers
- Regular APR: 19.99%
- Annual Fee: $0
- Benefits: Cash back rewards on purchases in specific categories.
Important Considerations:
- Balance Transfer Fees: Many cards charge a balance transfer fee (typically a percentage of the amount transferred). Factor this into your calculations to ensure you're actually saving money.
- Minimum Payments: Remember to make at least the minimum payment due each month to avoid late fees and damage to your credit score.
- Regular APR: Be mindful of the regular interest rate that kicks in after the introductory period. This can be quite high, so plan to pay off your balance before the promotional period ends.
Before Applying:
- Compare offers: Research and compare various balance transfer cards to find the one that best suits your needs.
- Check your credit score: A good credit score will increase your chances of approval and access to better terms.
- Read the fine print: Pay close attention to the terms and conditions of each card, including the balance transfer fee, introductory period, and regular interest rate.
By utilizing a 0% balance transfer credit card strategically, you can potentially save money on interest charges, simplify your debt management, and work towards achieving your financial goals.
