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A closer look at one of the best balance transfer offers and low-fee credit cards in Canada.
Nobody wants to carry a credit card balance but large purchases, emergencies or unforeseen expenses can throw an ugly blotch onto even the most organized Canadian’s financial picture. At these times it’s crucial to act fast and have a plan to pay down your debt before it grows out of control. Moving your debt to a low interest card is the first line of defence (ideally with an even-lower-rate balance transfer welcome offer—although, unfortunately, this card does not currently have one). With its low 17.99% rate on balance transfers and new purchases, could the MBNA True Line Mastercard be the right card for you? We dig in to the details.
Annual fee: $0
Low interest rate: 12.99%
Balance transfer offer: earn a 0% promotional annual interest rate (“AIR”) for 12 months on balance transfers completed within 90 days of account opening, with a 3% transfer fee. This offer is not available for residents of Quebec.
Card details
| Interest rates | 24.99% on cash advances, 17.99% on balance transfers |
| Income required | None specified |
| Credit score | 660 or higher |
Most credit cards charge a regular interest rate of around 19.99%, while the MBNA True Line Mastercard charges 12.99%, translating to everyday savings to the tune of 7.00% on unpaid balances. This means that new purchases accumulate interest at a lower rate and, perhaps even more importantly, balance transfers that are not fully paid off in the allotted 12 months at 0% revert to a lower regular rate as well.
Most low interest cards carry a fee, so you’re paying for the privilege of a lower rate. Not so with the MBNA True Line Mastercard. With no annual fee, you can keep more money in your pocket (or use it to lower your debt). You can even carry this card as a no-cost back-up in case you need a low interest option.
The strength of the MBNA True Line Mastercard is in its ability to save you money, which it does with a low interest rate, no annual fee and a promotional balance transfer period at 0% interest. So don’t expect many frills with this card. Aside from the very standard purchase protection, there are no perks.
The standard purchase interest rate is among the lowest at 12.99%, and very attractive for everyday purchases.
Be aware of is that while the standard purchase interest rate is 12.99%, cash advances accumulate interest at a whopping 24.99%. Do yourself a favour and avoid the cash advance service on this card altogether.
The other thing to note is that if you have accumulated debt, you’ll immediately pay 12.99% on it. While that’s better than the typical 19.99% most other cards charge, it’s not quite as beneficial as the super-low-rate promotional periods that a few competitors offer to new customers.
If you’re after a no-fee, low interest credit card for everyday purchases, and a super-low balance transfer welcome offer isn’t critical, the MBNA True Line Mastercard has a lot on offer.
Among the many other low interest credit cards available to Canadians, the MBNA True Line shines for two reasons: it’s a no-fee card, and it offers a low interest rate of 12.99% on balance transfers and new purchases. Still, it’s worth considering some of the True Line’s competition before deciding which is right for you:
Another option in the MBNA True Line collection, this Gold Mastercard offers a remarkably low 10.99% on purchases and 13.99% on balance transfers. While the Gold offers a lower interest rate on purchases and balance transfers than the MBNA True Line Mastercard, it does carry an annual fee of $39.
Annual fee: $39
Low interest rate: 10.99%
Welcome offer: This card does not have a welcome offer at this time.
Card details
| Interest rates | 24.99% on cash advances, 13.99% on balance transfers |
| Income required | None specified |
| Credit score | 660 or higher |
Like MBNA’s True Line, the American Express Essential Card has a $0 annual fee and low 12.99% purchase interest rate. On the other hand, the AMEX doesn’t charge a balance transfer fee, while MBNA charges a flat 3% fee on the balances you bring over from higher interest cards. It’s also important to consider that AMEX balance transfers are capped at $7,500, or 50% of your credit limit, so you may find you don’t have enough room to bring over your higher interest rate card balances, depending on your debt load and the credit limit you’re offered. The American Express Essential Card does outshine the MBNA True Line with its lower cash advance rate (12.00% versus MBNA’s 24.99%), better perks and insurance, but these are offset by the fact that American Express isn’t as widely accepted as Mastercard.
Annual fee: Annual fee: $25
Low interest rate: 12.99% on purchases
Welcome offer: None
Card details
| Interest rates | 12.99% on cash advances |
| Income required | $15,000 per year |
| Credit score | 725 or higher |
The Scotiabank Value Visa offers the same 12.99% interest rate as the MBNA True Line but carries an annual fee of $29. The welcome offer of 0.00% interest on cash advances for 6 months isn’t as tempting as MBNA’s, either, but the Scotiabank Value Visa potentially makes this up by not charging a transfer fee so you could come out ahead depending on the size of your balance. For those wanting to stick with one of Canada’s big banks, the Scotiabank Value Visa is attractive as it offers one of the most impressive balance transfer promotions from the “Big Five”.
Annual fee: $29 (waived first year)
Balance transfer offer: 0% interest for 10 months.
Card details
| Interest rates | 13.99% on purchases, 13.99% on cash advances, 13.99% on balance transfers |
| Income required | $12,000 per year |
| Credit score | 725 or higher |
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Would be a good card if we could use Tap or Pin feature !!!!
I got an MBNA card. And three weeks after ingot the card the interest rate changed. Which is allowed according to their all print. I would stay away. 12.99 will be 14.99 within a month.
Stay away from MBNA. This is the worst Credit card issuer. Customer service rudest, unkind anywhere on the planet. Approved for 5K limit Jan 10, used the card to purchase groceries and gas for about $1100. There were multiple duplicate charges which MBA told me to dispute with retailer instead of launching an investigation from their end. Even capital one take ownership of customer disputes on their own. Feb 1st noticed on my app my limit reduced to $1000 which below my balance. I was told Automatic system approval did not take consideration there was a no activity gap in my Transunion credit report therefore risk assessment reduced my limit. Sure, I was living in U.S for few years and no activity on my file but that was over three years ago. My Transunion file over 39 years old. trades still reporting as old as 21 yrs. For the past three years I have CIBC infinite Visa $19k limit, Scotia Busline Visa $45K limit, Amex Cobalt $21K limit. All accounts paid in full, no balance utilization below 5% any day. Score 769. Less than 6 inqs last 5 years. only 1inq within last 9 months. I canceled the card immediately.