Find the Ideal Balance Transfer Credit Card for You
In Canada, there are currently 58 million active credit card accounts exist. Having a credit card in this e-commerce world is normal. But struggling with credit card debt and high interest rates is not normal. Roughly half of Canadians pay off their balance every month, while the other half only pays a portion and carries over the remaining debt to the next month. This cycle leads you to a debt tribunal.
What if I told you that you may transfer all of your debt on a credit card? Yes, a balance transfer credit card can be a powerful tool to help you save more money and pay off your debt faster. This blog post covers the top 5 trending balance transfer cards in Canada as well as things to look for when considering a balance transfer credit card.
Key factor
When selecting a balance transfer credit card, keep the following key points in mind:
- Introductory APR: Look for a 0% interest rate during introductory periods; it will help you to pay off your debt without accruing interest rate for a particular time. Typically, this period covers 6 to 12 months or in rare cases 24 months.
- Balance Transfer Fee: A one-time fee charge during transferring credit card, generally 1% to 3% of the amount you transfer. There are few cards that offer no transferring fees.
- Regular Interest Rate (APR): After the introductory period, over the regular APR will apply. Make sure it will be a low interest card or you will take a longer time to pay it off. Mostly, the interest rate will be in between 12.99% to 21.99%.
- Annual Fee: A yearly charge for holding a credit card. Specifically, value will be 0-120$ yearly.
- Credit Limit: Make sure the card offers you a satisfying credit limit to compliment your balance transfer and also you can save little for a future payment.
- Extra Features: Most credit cards offer rewording programs, such as special discounts and cash back points.
- Extra fees: In case you are going to use it on an international purchase or during travel, consider how much foreign exchange fees may apply. Be aware of delayed payments and additional penalties.
Top 5 Trending Balance Transfer Credit Cards in Canada
| Card | Intro APR | Duration | Transfer Fee | Regular APR | Annual Fee | Key Features |
| Scotiabank Value® Visa* Card | 0% | 6 Months | 1% | 12.99% | $29 (waived first year) | Car rental discounts, optional protection |
| MBNA True Line® Mastercard® | 0% | 12 Months | 3% | 12.99% | $0 | Purchase assurance, extended warranty |
| CIBC Select Visa* Card | 0% | 10 Months | 1% | 13.99% | $29 (first-year rebate) | Accident insurance, optional payment protection |
| BMO Preferred Rate Mastercard® | 3.99% | 9 Months | 1% | 12.99% | $20 (first-year rebate) | Extended warranty, purchase assurance |
| Tangerine Money-Back Credit Card | 1.95% | 6 Months | 1% | 19.95% | $0 | 2% reward, extended warranty, purchase assurance |
Extra Tips
Here are a few more tips to get more out of these balance transfer credit cards:
- To take full advantage of introductory APR, try to transfer as soon as possible and save interest money.
- Make sure you will pay off your transferred balance in the introductory period to avoid a higher interest rate amount.
- Use a balance transfer calculator to estimate how much you can save with a balance transfer.
- Try to purchase or spend money under the special feature beneficiary area to avoid any extra charges.
- For extra benefits on cards, make sure to be in touch with the card provider to know new or changed laws and product information.
Conclusion
Consider a suitable Balance Transfer Credit Card can help you pay off all your debt faster while also improving your savidngs. The Top 5 cards listed above each have their own unique features and offers, but these are not the only cards available in the Canadian market; there are many more to consider based on your financial situation and needs. A Debt management service provider can guide you through all the offers and suggest you the best balance transfer credit card as per your requirements.
