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BMO Preferred Rate Mastercard Review

BMO Preferred Rate Mastercard®* review

Tyler Wade

Dec 12, 2024

While we adhere to strict editorial guidelines, partners on this page may provide us earnings.

Overall rating

First year value

$0

Get this card if you:

  • want to pay down credit card debt
  • want to take advantage of a low-interest rate promotion
  • value extended warranty and purchase protection

Scores by category

Low Interest 4.7

Balance Transfer 4.7

Highlights

0.99% rate

Welcome bonus

$29

Annual fee

waived on the first anniversary when you opt for the introductory balance transfer offer*

Interest Rates

13.99%

Purchase APR

15.99%

Balance transfer APR

15.99%

Cash advance APR

Eligibility

Good

Recommended credit score

Quick overview of the The BMO Preferred Rate Mastercard

The BMO Preferred Rate Mastercard®* is a low-interest credit card designed to help you build your credit score and pay off any credit card debt. It’s all thanks to its 0.99% introductory interest rate on balance transfers with a reduced transfer fee. While it does charge a $29annual fee, it’s waived on your first anniversary.* 

Who is the BMO Preferred Rate Mastercard best suited for?

You need a Good credit score to qualify for this card. Once you’re a card holder, you can build your credit score quickly with a balance transfer, low interest rates and quality credit card protections without a high annual fee. 

Pros and cons of the BMO Preferred Rate Mastercard®*

Pros

Pros

  • Low-interest rate: Offers a competitive purchase interest rate

  • Introductory balance transfer offer for the first nine months

  • First-year annual fee waiver

  • BMO PaySmart™ Installment plans: Turn new credit card purchases into small, interest-free monthly payments with a small fee.

  • Additional cardholder: You can add an additional cardholder for free

  • Free extended warranty and purchase protection*

  • Zero Dollar Liability: protects you from unauthorized use of your credit card*

Cons

Cons

  • No rewards: Your focus is paying down debt, not collecting miles.

  • Foreign transaction fee: Charges a 2.5% fee on foreign transactions.

  • Balance transfer fee: While normal, it’s a bit painful to have to fork over a 2% fee on balance transfers.

The BMO Preferred Rate Mastercard®* welcome offer

  • Introductory interest rate on balance transfers for 9 months with a 2% transfer fee and BMO will waive the annual fee in your first anniversary

Key benefits

  • Low-interest rate: Competitive purchase interest rate of 13.99%.
  • Balance transfer: 0% interest rate for nine months helps you pay down debt faster. 
  • Zero Dollar Liability: Protection against unauthorized use of the card.

The BMO Preferred Rate Mastercard insurance coverage

  • Purchase Protection: Provides coverage for eligible items in case of theft or damage.
  • Extended Warranty: Extends the manufacturer's warranty on eligible purchases.

For an extra fee, you can access services like Credit Card Balance Protection and BMO Roadside Assistance. 

What people say?

Preferred rate cards are for people who don’t pay off their credit card.

/u/Dragynfyre

If you tend to carry a balance on your card or want to pay off your existing credit card debt, preferred rate credit cards are the way to go, as mentioned by this Reddit user. If you are also looking for rewards, you can compare the BMO Preferred Rate Mastercard with others cards below.

How the BMO Preferred Rate Mastercard compares

The BMO Preferred Rate Mastercard®* falls into the low-interest credit card category. When comparing it to other cards in this category, it's essential to consider the interest rate, annual fee and any additional perks or benefits.

MBNA True Line® Gold Mastercard®

Apply now

2.6

Good

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • Low interest rate on purchases and balance transfers

  • Proactive fraud protection

Cons

  • $39 annual fee

  • Penalty interest rate if minimum payments are missed

Eligibility

Recommended Credit Score

Good

Pros

  • Low interest rate on purchases and balance transfers

  • Proactive fraud protection

Cons

  • $39 annual fee

  • Penalty interest rate if minimum payments are missed

Eligibility

Recommended Credit Score

Good

10.99% interest rate on purchases and 13.99% on balance transfers✪

10.99%

This card is made from 100% recycled plastic

100%

Use available credit on your credit card to transfer funds right to your chequing account.

Funds Transfer

Purchase APR

10.99%

Balance Transfer Rate

13.99%

Cash Advance APR

24.99%

Annual Fee

$39

Foreign Transaction Fee

2.5%

BMO Preferred Rate Mastercard vs. MBNA True Line Mastercard

If you’re looking for a balance transfer credit card, it’s hard to beat the MBNA True Line Mastercard. This is because of its 0% APR for 12 months (with a 3% transfer fee). MBNA may require a few more credit score points (~650+), but it also charges no annual fee. This makes it a strong contender for those looking for the best balance transfer card with a lower APR. If you can afford an annual fee, check out the MBNA True Line Gold Mastercard that charges a mere 10.99% on interest. 

  ✪, Terms and Conditions apply. 

  This offer is not available for residents of Quebec. For residents of Quebec, please click here.

  Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.

The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.

Scotiabank Platinum American Express® Card

Apply now

4.4

up to $2500 in value

Welcome offer

Good

Suggested credit score

Earn up to $2,500* in value in the first 14 months, including up to 80,000 bonus Scene+ points.

Expires

Oct 31, 2025

Apply now

Pros

  • The card offers a competitive low interest rate on purchases, cash advances, and balance transfers

  • Comprehensive insurance coverage

  • Complimentary Airport lounge access

  • No foreign transaction fees

  • Ideal for travelers as it has no foreign transaction fees

  • Offers a substantial welcome bonus that includes up to 80,000 Scene+ points

  • Enjoy premium perks like Hertz #1 Club Gold membership and concierge services.

Cons

  • High annual fee: At $399, the annual fee is steep, which could offset the rewards and benefits for some cardholders

  • Below average rewards rate: Lower compared to other cards with similar or lower annual fees

  • Limited American Express acceptance: Especially outside major cities

  • Rewards potential: The net rewards potential is relatively low when considering the high annual fee

  • Non-transferable points: Scene+ points cannot be transferred to other rewards programs

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$12,000

Pros

  • The card offers a competitive low interest rate on purchases, cash advances, and balance transfers

  • Comprehensive insurance coverage

  • Complimentary Airport lounge access

  • No foreign transaction fees

  • Ideal for travelers as it has no foreign transaction fees

  • Offers a substantial welcome bonus that includes up to 80,000 Scene+ points

  • Enjoy premium perks like Hertz #1 Club Gold membership and concierge services.

Cons

  • High annual fee: At $399, the annual fee is steep, which could offset the rewards and benefits for some cardholders

  • Below average rewards rate: Lower compared to other cards with similar or lower annual fees

  • Limited American Express acceptance: Especially outside major cities

  • Rewards potential: The net rewards potential is relatively low when considering the high annual fee

  • Non-transferable points: Scene+ points cannot be transferred to other rewards programs

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$12,000

Scene+ points for every $1 spent on all other eligible purchases

2x

Scene+ points for every dollar you spend on hotel bookings, car rentals, and things to do with Scene+ Travel, Powered by Expedia

4x

No foreign transaction fees

0%

Complimentary airport lounge passes per year

10

Purchase APR

9.99%

Balance Transfer Rate

9.99%

Cash Advance APR

9.99%

Annual Fee

$399

Foreign Transaction Fee

0%

BMO Preferred Rate Mastercard vs. Scotiabank American Express Platinum Card

Charging only 9.99% interest on purchases, cash advances and balance transfers, the Scotia Amex Platinum card is a fantastic low interest rate credit card that also earns rewards. It can’t all be great news—the card’s annual fee is $399. So if you’re looking at the Amex for travel and low interest rates, consider if you like the Scene+ program, as you’ll have to transfer points to another card if the annual fee becomes too much. 

BMO Prepaid Mastercard®*

1.8

Fair

Suggested credit score

to receive the latest news, tips and offers by email

Read review

Pros

  • No credit check or minimum income requirements for approval.

  • Accepted internationally at over 30 million locations.

  • Offers Purchase Protection and Extended Warranty coverage.

  • No interest rates since it's not a credit card.

  • Enhanced security features, including Mastercard’s Zero Liability insurance.

Cons

  • No rewards or cash back program.

  • Annual fee of $6.95

  • Various fees, including foreign transaction fee and inactivity fee.

  • Maximum balance limit of $10,000

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Pros

  • No credit check or minimum income requirements for approval.

  • Accepted internationally at over 30 million locations.

  • Offers Purchase Protection and Extended Warranty coverage.

  • No interest rates since it's not a credit card.

  • Enhanced security features, including Mastercard’s Zero Liability insurance.

Cons

  • No rewards or cash back program.

  • Annual fee of $6.95

  • Various fees, including foreign transaction fee and inactivity fee.

  • Maximum balance limit of $10,000

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

There are no rewards with the BMO Prepaid Mastercard

N/A

Annual Fee

$6.95

Foreign Transaction Fee

2.5%

BMO Preferred Rate Mastercard vs. BMO Prepaid Mastercard

Why not avoid interest rates altogether? With a BMO Prepaid Mastercard®*, there’s no interest rate on purchases or cash advances, and all for a small annual fee. However, it’s because you’re loading up the card with your money so you can use a credit card to spend, no one is loaning you any money. 

Prepaid credit cards don’t help build your credit score, but it certainly keeps your spending in check because you can only spend the money you load onto the card. 

Is the BMO Preferred Rate Mastercard worth it?

Given its low-interest rate, balance transfer offer and the first-anniversary annual fee rebate, the BMO Preferred Rate Mastercard®* is a solid choice if you’re looking to save on interest. However, if you’re looking for extensive rewards or benefits, there are better options available.

FAQs

  • How does the balance transfer offer work?

    +

    Get a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee and BMO will waive the $29 annual fee in your first anniversary*.

  • How do I qualify for the BMO Preferred Rate Mastercard?

    +

    While the card is accessible to those with fair credit scores (ranging from 575-749), having a good credit score can increase the chances of approval. This card does not have any income requirements.

BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information

*Terms and conditions apply

Tyler Wade Personal finance content strategist & writer

Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.

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