The best balance transfer credit cards in Canada for 2024

Moving your credit card debt to a balance transfer credit card can help you pay off the principal more quickly by giving you access to a lower regular interest rate. Many balance transfer cards offer a welcome bonus with an extra-low (and sometimes 0%) rate for a limited time. Check out our picks for the best balance transfer credit cards in Canada.

Best balance transfer cards in Canada

Compare popular balance transfer credit cards

Compare your options with our interactive tool and get a sense of how much you could save on interest depending on the size of your balance.

MoneySense award winners

Dive into the pros and cons of our gold, silver and bronze-winning balance transfer credit card picks.

Gold: MBNA True Line Mastercard

At a glance: With a 0% balance transfer rate for a full year, the MBNA True Line Mastercard offers a lot of runway to bring down your debt. This card doesn’t charge an annual fee, which is another advantage if you’re working to pay off an existing balance.

Silver: Scotiabank Value Visa

At a glance: For those who bank with Scotiabank, the Scotiabank Value Visa offers an enticing balance transfer option. The annual fee is a manageable $29, and the fee is waived for the first year or waived altogether if you have Scotia’s Preferred or Ultimate banking package. The 13.99% interest rate is among the lowest around, making it suitable for consolidating your debt. 

Silver: CIBC Select Visa Card

At a glance: The CIBC Select Visa Card offers an attractive 13.99% interest rate, even on cash advances, and it has a 10-month balance transfer offer of 0% interest and a low 1% balance transfer fee. A handful of other perks, like common carrier accident insurance and discounts on gas, round out the package.

How balance transfer cards and promos stack up

View the most important details at a glance and see for yourself why our picks are the best cards for balance transfers in Canada right now.

	Balance transfer offer	Transfer fee	Annual fee	Regular interest rates	Annual income requirements	Credit score requirements	Conditions
MBNA True Line Mastercard	0% interest for 12 months	3% of balance transferred	$0	12.99% on purchases 24.99% on cash advances 17.99% on balance transfers	None specified	660 or higher	Offer not available to Quebec residents
Scotiabank Value Visa	0% interest for 10 months	1% of balance transferred	$29 (waived first year)	13.99% on purchases 13.99% on cash advances 13.99% on balance transfers	$12,000	725 or higher
CIBC Select Visa	0% interest for up to 10 months	1% of balance transferred	$29 (waived first year)	13.99% on purchases 13.99% on cash advances 13.99% on balance transfers	$15,000	660 or higher	The balance you transfer cannot exceed 50% of your total approved credit limit
BMO Preferred Rate Mastercard	0.99% interest for 9 months	2% of balance transferred	$29	13.99% on purchases 15.99% on cash advances 15.99% on balance transfers	$15,000	660 or higher
Scotia Momentum No-Fee Visa	0% interest for 6 months	2% of balance transferred	$0	19.99% on purchases 22.99% on cash advances 22.99% on balance transfers	$12,000	660 or higher

What is a balance transfer?

A balance transfer is the transfer of debt from one credit card to another. Although a cardholder can transfer their debt for a variety of reasons, the goal is usually to cut down on the amount of interest charged and to pay off the loan faster.

As most everyday-use credit cards command an interest rate of around 20%, your principal debt load can bloat quickly. By transferring debt to a card with a lower interest rate, you’ll incur lower interest charges—so more of your money goes to the principal balance.

How does a balance transfer work? 

A balance transfer can help you save on interest charges by moving your credit card balance to another card with a lower interest rate. To demonstrate how credit card balance transfers work, let’s compare the interest charged on an outstanding credit card balance over time. 

Let’s say you have a credit card with a balance of $4,000 and a 20.99% annual interest rate. Every month, you make a $400 bill payment. Should you stick with paying down the balance on your existing card or transfer the balance to a balance transfer card with a lower interest rate? For this example, we’ll use the MBNA True Line Mastercard, which comes with a 0% promotional interest rate for 12 months and a 3% transfer fee. 

	Regular credit card	Balance transfer credit card
Initial credit card balance	$4,000	$4,000
Purchase interest rate	20.99%	0% for 1 year
Monthly payment	$400	$400
Balance transfer fee	N/A	$120 (3% of your initial balance)
Months required to pay off balance	12	10
Total interest paid over time	$435.20	$0
Total cost	$435.20	$120

In this case, you’d save $315.20 in interest ($435 – $120) and pay off your debt two months faster by transferring the balance to the MBNA balance transfer credit card in the example above. 

One thing to consider is the fee associated with the transfer, which can range from 1-3% of the total balance you are transferring to another card. The fee might be small compared to the interest charges you are paying, if you have a high balance on your credit card. 

If you have a relatively small amount on your card, like $1,500, but you notice you are constantly carrying a balance and paying interest charges, consider swapping out your card for a low-interest credit card with your existing bank, or applying for a new card at another financial institution instead. That way, you won’t pay a balance transfer fee or additional interest on the balance (until the balance transfer promotion period ends, so make sure to pay it off before then). Some card issuers will even rebate or waive your new card’s annual fee for the first year. 

If you switch to another card with your current bank, you can generally have the lower interest rate applied to your existing balance and reduce your total interest charges. Keep in mind that if your balance represents a large amount of your available credit on the new card, too, and your utilization ratio creeps above 30%, it may be worthwhile to look into a balance transfer credit card. This is because balance transfers usually only affect your credit score in the short term, and reducing your credit utilization ratio can be beneficial for your score in the medium to long term. 

Example of how a balance transfer works with a small balance 

	Regular credit card	Balance transfer credit card
Credit card balance	$1,500	$1,500
Purchase interest rate	20.99%	0% for 1 year
Monthly payments	$200	$200
Balance transfer fee	N/A	$45 (3% of your initial balance)
Months required to pay off balance	9	8
Total interest paid over time	$121.96	$0
Total cost	$121.96	$45

In this example, you’d save $76, and it would only take one less month to pay off your balance, so it may not make sense to use a balance transfer. 

How to do a credit card balance transfer

Balance transfers can be an effective way to consolidate and address debt. There are seven things to consider before you apply for a balance transfer card.

1. Shop around for the rate, timing and terms that suit you best
   If you’re trying to eliminate credit card debt, your best bet might be a balance transfer credit card. These cards come with promotions that let cardholders pay very low interest (sometimes as little as 0%) for a limited time (like six or 10 months). These offers can be a really effective way to bring down your debt fast, if you are disciplined about making regular payments and are not racking up a lot of new purchases. The card you choose will depend largely on what’s available when you’re looking, how long you think you’ll need to pay off your debt, and the card’s other terms.
2. Make sure you’re eligible for the balance transfer
   Balance transfer promotions are only valid when moving debt from a credit card at one bank to a card at another bank. It will not work between two cards from the same bank. 
3. Timing is everything
   Balance transfer promotions are available at the time that you make your application or sometimes shortly thereafter. Be strategic about when you apply, and make sure you’re prepared to make the transfer. That means having the credit card company name, your name as it appears on the card, the debt total and the credit card number.
4. Remember that balance transfer promotions don’t last forever
   The low, single-digit rates available on balance transfer credit cards are limited-time offers. Once the promotional period is over, the cards’ regular interest rates will kick in, which will affect your monthly payments. How you handle this will depend on the amount of debt you have and how quickly you plan to pay it off. But, in general, the best strategies include paying off the balance before the balance transfer offer ends and picking a card with a low regular interest rate. This way, you’ll save money on interest even if you still owe after the offer period.
5. Make your minimum payments
   Even when taking advantage of a balance transfer offer, you must make at least the minimum payment on the card, on time, each month. If you don’t, that super-low promotional interest rate can quickly be discontinued and the standard interest rate will kick in almost immediately. In other words, only take advantage of a balance transfer offer if you have the cash on hand to make at least the minimum payment each month and you’re in the right financial mindset to take on debt repayment.
6. Balance transfer fees
   Some—but not all—cards charge a fee for balance transfers. This fee is expressed as a percentage of the total amount you want to move, and it usually ranges from 1% to 3%. So, for example, if you’re looking to transfer $1,000 in debt to a card with a 3% fee, your opening balance will be $1,030. The additional cost may well be worth the money you’ll save at the new lower interest rate. But keep your eyes open for fee deals: Occasionally, a card will run a promotion where the balance transfer fee is waived.
7. Separate your expenses
   If you charge a new purchase to your balance transfer credit card, this spend will be charged at the card’s regular interest rate if you don’t pay on time, not the promotional rate that’s applied to the balance you’ve transferred. This might not seem like a big deal, especially if you’ve been lucky enough to find a card with a lower regular rate, but there’s an additional catch: Most credit cards apply payments to debt marked at the low or promotional rate first, which means your high-interest purchases are sitting there longer, racking up interest. If you’re trying to pay down debt, this only compounds the problem. It’s good practice to leave your balance transfer card at home and use a different financial product (like debit, cash or even a different credit card) for new purchases. 

Do you earn cash back on balance transfers?

Like cash advances or purchases of money orders, balance transfers are not considered to be purchases, so in general, they’re not eligible for cash back rewards. There may be some rare exceptions with certain promotional offers, but these are few and far between. That said, the interest saved by moving your debt to a card with a lower interest rate will far outweigh the value of most cash back returns.

How does a balance transfer credit card impact my credit score?

When you apply for any credit card, you receive a hard credit inquiry that can temporarily bring your credit score down a few points. This includes balance transfer cards. However, this is not a reason to avoid applying. 

If you’re looking into a balance transfer credit card, it’s likely because you’ve got some outstanding credit card debt. Moving that debt in order to reduce it will have a positive, lasting impact on your credit score in the medium to long term. 

The lower interest rate means more of your money goes to paying down the balance, so you can reduce your debt load faster. A smaller debt load can improve your credit score because it lowers your credit utilization—a major credit score factor that measures the ratio between the balance and the total credit limit. Say you owe $600 on a credit card with a limit of $2,000. Your credit utilization would be 30%. Having a credit utilization score of 30% or lower is considered good.

When you consider everything, the damage your debt load does to your credit score far outweighs the small and temporary effect on your credit score caused by a credit card application. When it comes to debt, always look for the longer-term solution.

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