How it works

A balance transfer moves debt from one or more credit cards onto a new card with a low or zero interest promotional period. The keyword here is promotional.

Once that period ends, your interest rate jumps — often higher than your old card. So the goal is simple: pay off as much (ideally all) of the debt before that period ends.

Finding the right transfer balance credit card is important. Some cards offer 0% interest for a set period, while others offer low promotional rates with other perks.

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MBNA True Line® Mastercard®

Get a promotional 0% rate for 12 months†

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BMO Eclipse Rise Visa

Get rewarded when it comes to building your financial future

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Scotiabank Value® Visa Card

Save up to hundreds of dollars a year on interest

If you want to pay down debt ASAP

If you’re serious about paying down debt as fast as possible, our pick is the MBNA True Line® Mastercard®.

While it has a 3% transfer fee, it has no annual fee. If you complete a balance transfer within 90 days of opening an account, you can enjoy a promotional 0% promotional annual interest rate (“AIR”)† for 12 months — giving you a full year to focus on paying down your debt. Use this window like a countdown. Divide your debt by the number of promo months and make that your monthly goal. Automate your payments so you never miss one (because that could void your promo rate).

Partner logo

MBNA True Line® Mastercard®

Get a promotional 0% rate for 12 months†

If you have a big balance you want to tackle

A higher transfer fee is not ideal if you’re moving over a big balance.

With the BMO eclipse rise Visa* Card, get an introductory balance transfer interest rate of 0.99% for 9 months with a 2% fee — which is ideal if you want to consolidate multiple high-interest credit card balances into one.

Tempting as it may be, don’t use your balance transfer card for purchases. New charges typically aren’t covered by the promo rate and could rack up interest from day one.

While this card has a $0 annual fee, you’ll want to pay down your balance before the promotional period ends at 9 months.

Partner logo

BMO Eclipse Rise Visa

Get rewarded when it comes to building your financial future

If you consistently carry a balance each month

You could opt to pay an annual fee in exchange for a lower interest rate overall.

The Scotiabank Value® Visa Card is perfect for this scenario. It offers a low 0.99% introductory rate on balance transfers for the first 9 months† — and the $29 annual fee is waived for the first year.

After the intro period, you can take advantage of the card’s lower-than-average interest rate for everyday purchases. A balance transfer card isn’t a reset button. It’s a tool — and like any tool, it only works if you use it properly.

Partner logo

Scotiabank Value® Visa Card

Save up to hundreds of dollars a year on interest

Romana King Senior Editor, Money.ca

Romana King is the Senior Editor at Money.ca. She writes for various publications, and her book -- House Poor No More: 9 Steps That Grow the Value of Your Home and Net Worth -- continues to be an Amazon bestseller. Since its publication in November 2021, this book has won five awards, including the New York CPA Society's Excellence in Financial Journalism (EFJ) Book Award in 2022.

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