Balance transfer credit cards

Are you struggling to pay off credit card debt due to the amount you owe? Balance transfer credit cards with a 0% or low balance transfer rate is one way to address this problem.

It is essential to pay off your credit card balance by the due date to avoid paying a high-interest rate. The average interest rate falls between 19% and 29% in Canada. Therefore, a $1,000 balance on your credit card will cost you between $190 and $290 in interest fees alone each year.

However, there is a way out. Balance transfer credit cards are a good way to get out of credit card debt.

1. MBNA True Line Mastercard

0% interest for 12 months on balance transfers

The MBNA True Line Mastercard offers a 0% promotional balance transfer for 12 months. However, there is a 3% balance transfer fee.

Balance transfer rates increase to 12.99% after the promotional period.

With new purchases, you’ll get a low rate of 12.99%. Unfortunately, cash advances have a high rate of 24.99%.

The good thing about this card is that it has no annual fee, and there are no income requirements.

That’s not all; the MBNA True Line Gold Mastercard can also help you save with Avis Rent A Car and Budget Rent A Car. You can save a minimum of 5% internationally and 10% in Canada.

2. Scotiabank Gold American Express Card

0% interest for six months on balance transfers

The Scotiabank Gold American Express® Card offers a 0% interest rate on balance transfers for the first six months. After that, you pay a balance transfer fee of 22.99%. A 1% balance transfer fee applies.

While the annual fee is $120, it offers a flexible reward with top-class rewards multipliers across wide spending categories.

Click here to read the Scotiabank Gold American Express® Card review

3. CIBC Select Visa

0% interest for up to 10 months

The CIBC Select Visa card offers a low-interest rate balance transfer option that can help you reduce interest payments. It allows transfers up to 50% of your credit limit. If you transfer your current credit card balance to the CIBC Select Visa card, you can get 0% interest for ten months with a 1% transfer fee.

As part of this card reward, passengers are insured against common carrier accidents up to $100,000. It has a $29.00 annual fee (which is waived during the first year), and you are allowed to have up to three additional cards for free.

4. Scotiabank Value Visa Card

0.99% interest for six months

The Scotiabank Value Visa Card offer a 0.99% balance transfer for six months.

Afterward, you will receive a low ongoing interest rate of 12.99% on balance transfers, purchases, and cash advances.

The card also has a low annual fee of just $29. Like other Scotiabank credit cards, this card offers discounts at Avis car rental locations worldwide.

In conclusion

Interest rates on credit cards typically range from 19% to 29%, making even a small financial blunder quickly become an expensive obligation. Smart use of balance transfer credit cards can help minimize the financial impact.

If you choose to carry a balance and you make your minimum payments on time, a balance transfer could save you money on interest.