Top Low-Interest Balance Transfer Credit Card in Canada

low-interest balance transfer credit card
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The demand for a low-interest balance transfer credit card in Canada is constant, and for sensible reasons. When done correctly, a balance transfer can help you resolve current debts and improve your credit score. Making a low-interest credit card move from a high-interest credit card requires careful consideration and financial planning. The shift has its own set of pros and cons. However, the benefits of a credit card balance transfer outweigh its drawbacks.

Planning of applying for a low-interest balance transfer credit card in Canada? Here are the things that you need to know beforehand.

What is a Credit Card Balance Transfer?

A credit card balance transfer happens when you open a new credit card account and use the available credit to settle your debts on your other credit cards. A lot of people use this transfer to take advantage of lower interest rates compared to what they are paying right now. The deal is also a clever move if you plan to consolidate different credit card bills into a single payment.

Who should apply for a low-rate credit card balance transfer?

Canadians who find themselves stuck with debt from a high-interest credit card can benefit a lot from a low-interest balance transfer credit card. With the reasonable interest rate, you’re able to pay off your existing credit card obligations through the funds from your new card. Just transfer the balance on your card and then focus on settling your debt throughout the duration of the card’s introductory period.

The balance transfer is the thing you need if you’re truly committed to fixing your finances and paying off your debts. A low-interest balance transfer credit card is best for people who know how to use a credit card level-headedly. It’s the card for people who make their payments on time.

Low-interest balance transfer cards are often offered to individuals who have reasonably good credit scores. Here in Canada, that’s typically 680 or higher. Even if you have multiple credit card debt, you can still qualify for a low-interest balance transfer if your credit history is fairly decent. This means you pay off the balances on your cards in a timely fashion.

Another consideration is your household income range. Most applicants who get approved for a low-interest balance transfer credit card have an annual income range of $30,000 to $70,000.

How can you transfer your credit card balance?

Various credit card companies in Canada offer low-interest balance transfer credit cards. For a detailed comparison of these cards, go to CompareMyRate.ca. These financial enterprises offer credit cards with low interest rates as part of their marketing campaign to bring in more customers.

It’s important to note that there is a set period for you to move your existing debts from other credit cards to a new account. If you adhere to the timetable and pay off your debts on time, the transfer can be an excellent way to reduce your financial obligations quickly. Most of your payment will directly go to reducing the principal balance of the card without being charged with a steep interest rate.

What do you need to do before you apply for a lower-rate balance transfer card?

Shop around. Don’t settle on for the first available offer you get. As mentioned above, there are a lot of credit card companies in Canada that provide low-interest credit cards for balance transfer. With CompareMyRate.ca, you’ll be able to see the differences among these credit companies.

It isn’t hard to find a credit card provider that gives an enticing balance transfer rate. Most offer an interest rate of 1% to 3%. Some even offer 0% interest rate for a specific time period. When you transfer your balances from other accounts, there’s usually a fee that’s applied. The amount is based on the money that you’re moving to the new account.

Keep in mind that when you move your balance, you have to send your payments diligently. Most companies will increase the Annual Percentage Rate of your account by up to 5% if you have a late payment within the first year of your billing cycle.

What are the advantages of a lower-rate credit card balance transfer?

Improves Your Financial Standing

Getting a low-interest balance transfer credit card gives you an opportunity to impact your credit history positively. It also brings a significant bearing on your financial obligations. When you make timely payments, the bulk of that amount will go to your actual balance. You’re not just paying the interest rate anymore. If you don’t have a substantial debt to begin with, you may even end up paying off the whole thing.

Calms You Down

If you’re unsatisfied with your current credit card company, transferring your balance to a card with better terms will give you peace of mind. You no longer need to deal with a company that has a high-interest rate and with little to none grace period.

Makes Your Payment Process Easier

Getting a low-interest balance transfer credit card enables you to consolidate all your credit card debt. This leaves you with fewer bills to pay. There may even be a possibility that you’ll be left with just a single one. This eliminates the stress and hassle of sending different payments for different cards.

Some of the best low balance transfer credit cards

Here are a few examples of the best low balance transfer credit cards in Canada:

Interest Rate

11.99%

Annual Fee

$29

Balance Transfer: 1.99% introductory

Cash Advance: 11.99%

Sign-up Bonus

Special 1.99% introductory interest rate on Balance transfers for the first six months†

Interest Rate

19.99%

Annual Fee

No Annual Fee

Balance Transfer: 0%†

Cash Advance: 24.99%

Sign-up Bonus

0% Balance Transfer for 12 months

Interest Rate

19.99%

Annual Fee

No Annual Fee

Balance Transfer: 1.99%

Cash Advance: 22.99%

Sign-up Bonus

5% Cashback & 1.99% Balance Transfer for first 6 months

How can you take maximum advantage of a credit card balance transfer?

The best way to thoroughly enjoy a low-interest balance transfer credit card is to settle all your obligations before the promo rate ends. It’s important that you plan on how to tackle your monthly credit card bills. Start by setting up the amount of debt you want to move. Then, divide that amount by the number of months when the promo period takes place. Using the result of the computation, decide if it’s something you can manage. If so, go for it. Apply for that low-interest balance transfer credit card.

How can you accurately compare credit card balance transfer offers?

Finding the best low-interest balance transfer credit card offer is easy enough to do. You can visit CompareMyRate.ca to check and compare rates from different credit card companies. It’s important that you make rate comparisons before you apply for a transfer. This is to ensure that you’re able to manage the amount you need to pay when the transfer is made. Also, checking out various companies will help you single out the offer that fits your financial capabilities and credit history.

How can you make the lower-rate credit card balance transfer work for you?

For a low-interest balance transfer credit card to work efficiently, you need to take your debt seriously. Stop depending on your credit card. If you’re unable to stop swiping your card for just about anything, you’ll end up with more financial obligations than you started with. Treat your card as if it’s nonexistent, at the very least, until you pay off your debts.

Getting a low-interest balance transfer credit card is a chance for you to settle your debts faster. Don’t let it be a reason for you to deny the fact that you actually have a debt to pay off. Transfer your credit balance for the right reasons. Study and follow the fine print. Make the necessary computations before even applying to ensure you’ll come out ahead. And, set up a repayment plan you can actually manage to follow.

To get accurate credit card rate comparisons, check out CompareMyRate.ca now.

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