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Balance Transfer Cards for december 2022 in Canada

Apply for a balance transfer credit card. On 03.12.2022 you have access to 7 credit cards. Increase your chances of getting money — fill out a multi-application with a free credit rating check.

Offers: 7

Updated
01.12.2022
13:13
Toronto-Dominion Bank
TD® Cash Back Visa Card®
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
Rate
i

Effective interest rate on the product

19.99% - 22.99%
Toronto-Dominion Bank
TD® Aeroplan® Visa Infinite Card
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
from $5,000
Rate
i

Effective interest rate on the product

19.99% - 22.99%
Scotiabank
Scotia Momentum® Visa Infinite Card
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
Rate
i

Effective interest rate on the product

20.99% - 22.99%
Submit your credit card application online
Submit your credit card application online

Take advantage of our credit card selection system with a free credit check!

Royal Bank of Canada
RBC Visa Platinum®
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
Rate
i

Effective interest rate on the product

26.99% - 27.99%
Royal Bank of Canada
RBC Cash Back Mastercard®
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
Rate
i

Effective interest rate on the product

21.99% - 22.99%
Refresh Financial
Refresh Financial's Secured Card®
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
Canadian Imperial Bank Of Commerce (CIBC)
CIBC Costco® Mastercard®
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
Rate
i

Effective interest rate on the product

19.75% - 21.49%

Balance Transfer Cards calculator in Canada

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Other credit cards offers

GoDay
1.6
JUDGEV
JUDGEV
26.05.2022 at 15:46
the application is easy and takes less then 5 mins to fill out. but the funding time is quite long. if looking for instant funding then its not here...
Review
Balance Transfer Cards for december 2022

What is a balance transfer credit card?

Only 30% of Canadians do not have any debt, which is a clear indication of the growing popularity of borrowing and credit card usage. Credit card features such as grace periods, welcome bonuses, special interest rates for some time, and waiving the annual fee lure customers into debt. The good news is that there is quite an arsenal of debt-busting tools, one of which is a balance transfer. This financial product allows customers to save as much money as possible on bank fees and even boost credit.

Balance transfer means that the credit balance of a high interest credit card is transferred to a new credit card of the same borrower without any negative impact on his credit score.

Financial institutions that issue balance transfer credit cards take advantage of getting new customers into their system. To attract them to this service, they either waive the initial balance transfer fee or offer a low fee balance transfer. Typically, the balance transfer fee is 5% of the balance transfer amount and is added to the amounts owed. The issuer of the balance transfer card receives income from the monthly payments and interest on new purchases made with the card. Both parties are satisfied, as customers usually look for credit cards with more benefits, such as an extended grace period and lower interest rates, indirectly encouraging them to spend more.

Preferential interest rates for credit cards with balance transfers can be maintained only on the condition that the card credit is properly paid.

Comparing the balance transfer credit card with debt rescheduling and refinancing is possible. Both functions are included in the balance transfer credit card.

Multiple expensive loans can be transferred to one, which saves money and spares borrowers the necessity to check different credit card repayments, deadlines, and monitoring rate changes with multiple lenders.

A credit card with a balance transfer may help to pay off the outstanding debt faster, or conversely, it can take more time to repay the loan and have more money left after making the mandatory payments for loans and monthly fixed expenses.

Of course, there are risks such as an interest rate increase or incurring penalties that can total 30% or more. It is recommended to ensure the deal is worth it and do the math.

As an option, internal debt restructuring within the same lender (credit card issuer) is possible if your credit score and repayment history are good: Try to negotiate a reduction in the interest rate to around 27% or less, and you will get good savings.

How does a credit card balance transfer work?

Another important question many borrowers ask is: How will a balance transfer credit card affect my credit score? This concern is understandable because sometimes rebuilding takes longer than losing a high score. That's true; depending on how you proceed, it can go either way. Keeping your previous credit card and properly paying off your improved loan will positively impact your credit score.

First and foremost, the term of the previous credit, including the use of the previous credit card, becomes shorter, the number of inquiries about the credit score increases, and the credit score decreases. But not only that, such customers become riskier for lenders, and it might become more challenging to get a new credit card or another loan until the moment when, in the worst case, they receive a negative response from the lender regarding the application for a new credit card. To avoid such a situation, use the balance transfer credit card tool wisely. Find out which credit card offers advantages compared to the existing one, and only apply and transfer the balance.

Credit cards are one of the credit products in Canada, and the legal regulations are made at two levels: Federal and provincial.

According to the Criminal Code, the interest rate on credit cannot exceed 60 percent.

The consumer rights of credit card users in Canada are protected by the Financial Consumer Agency of Canada, established by the Financial Consumer Agency of Canada Act. This government agency monitors whether the company's operations comply with the law.

Most protected are customers of government-regulated financial institutions and lenders, which include:

  • All banks;

  • credit institutions,

  • cooperative financial associations.

The borrower's right to information is fulfilled through a transparent presentation of the credit card's rates, interest rates, and features.

The borrower must be provided with a copy of the credit card agreement that clearly shows all relevant information.

  • The monthly credit card statement must include information on the outstanding balance;

  • The approximate repayment period of the outstanding balance;

  • the drop-down list of transactions must include purchases, cash advances, cash-like transfers, and fees charged (interest and non-interest fees).

Note that there may be no monthly statement if a borrower defaults and the credit agreement is suspended; the second reason may be that no amount is due and the borrower has not used the credit limit.

  • The limit increase, changes in the interest rate, and other rates must be made after the customer has been notified and has given consent to continue to receive services under these terms.

Note: Not all changes require the borrower's prior notice and consent, for example,

  • extension of the grace period;

  • reduction in interest rate;

  • reduction in service fees;

  • changes in optional services chosen by the customer.

Customers of financial institutions that offer credit cards with balance transfers must ensure that they use all available tools to protect their rights as credit card users.

Where to get a balance transfer credit card in Canada

Balance transfer credit cards are one tool that allows for faster loan repayment and reduced loan cost. This tool gives extra time to pool money for repayment and save money.

It is possible to apply for a balance transfer credit card online through the application form on the lender's website, through a mobile app (if available), and at offline meetings.

It is possible to get a balance transfer from

  • a bank;

  • a credit union,

  • alternative lenders that issue balance transfer credit cards.

According to the open sources, the balance transfer option is available even at the National Bank of Canada.

How to choose and apply for a balance transfer credit card in Canada

To choose the best balance transfer card, evaluate the features different credit card offer to customers.

Suppose a borrower realizes they are uncomfortable paying an existing credit card because they jeopardize their credit score. This should be taken as an indication that solutions need to be found. Look around to see what offers are on the market, ensuring that the interest rate for transferring the balance is lower than that of your current credit card and that there are no high fees for transferring the balance.

With these criteria in mind, test different options before applying. Take advantage of online calculators that convert your ideas and preferences into concrete numbers.

If you prefer the offline service, it is possible to apply online on the lender's (balance transfer credit card issuer's) website, mobile app, or office.

Once the customer is approved and receives the card, here is what happens: The card type the charge on the previous credit card, and the debt is moved to a new card under new terms that are friendlier and allow you to stay on track and even save some money on debt service.

Some lenders give friendly instructions when approving a balance transfer:

  1. make payments on the old credit card by the time the balance transfer is approved to avoid penalties;

  2. stay away from new purchases that can drive you deeper into debt;

  3. repay the outstanding balance within the promotional period before the regular interest rate is applied to your credit card.

When deciding on balance transfer deals:

  • consider the interest charges;

  • total credit limit available;

  • check out your credit score to make sure it is sufficient for balance transfer approval;

  • ensure the terms are better compared to your existing credit card (minimum payments, promotional balance transfer rate, recurring bill payments terms, the reputation of the credit card company, monthly payments, the transfer fee for cash-like transactions, annual fee, the remaining balance after a balance transfer, etc.)

The balance transfer credit card choice should reflect the borrower's purposes, but the first step should be checking whether abilities allow meeting desired goals. It means that the first step should be checking the credit reports, which allows seeing that there are no errors and, if they are detected, to correct them before applying.

When credit score and credit report are verified, the borrower should take their list and shop around. This list might include needed or desired credit limits, annual fees, promotional periods, balance transfer terms, and repayment options for different balance transfer cards.

Requirements

  • To transfer the credit, the applicant must be a resident of Canada (citizen or permanent resident);

  • They must be of legal age;

  • That the borrower (balance transfer applicant) is capable of entering into legally binding contracts and signing legal documents;

  • Have a good credit score (not less than 670 and the higher, the better);

  • Be financially and income-wise capable of servicing the credit card debt, i.e., make at least minimum monthly payments, but of course, it is better to repay the outstanding amount, the sooner, the better, i.e., within the period in which the promotional interest rate applies. If the borrower cannot repay the amount within this period, the interest rate becomes the standard, and the debt service becomes increasingly expensive.

Balance transfer credit card features

The features of credit cards with balance transfer depend on the issuer and the type of card.

For example:

  • they may offer additional cash back options such as higher cash backs and more categories;

  • more miles for purchases;

  • discounts with partners;

  • longer promotional interest period, which can last from 12 months to 21 months;

  • over 20 billing cycles for purchases;

  • promotional interest rate instead of 16-28% or higher;

  • cell phone protection when the card is used to pay phone bills;

  • balance transfer credit card can be applied for before getting into trouble with repaying credit card debt because the approval process takes up to six or even eight weeks.

Pros and cons

Pros

  • A balance transfer credit card is an option for those who do not want to pay too much for using borrowed funds and pay attention to the household budget.

  • It saves money on fees;

  • it can quickly improve credit score if such transfers are not made too often;

  • assigned credit limit is used more efficiently by the borrower;

  • balance transfer lets to repay the debt faster;

  • best balance transfer as a low-interest credit card offers a longer promotional period, low fees on balance transfer;

  • reward rate at supermarkets;

  • balance transfer credit card has a low annual fee (or zero annual fees);

  • if the credit limit of the new balance is different balance transfer credit cards offer more than one personal loan;

  • credit card companies invent good tariffs for a promotional period, transferred balances combined with a low annual fee;

  • most balance transfer cards work well for recurring bill payments, and more predictable monthly payments within the assigned credit limit;

  • balance transfer fees are much lower compared to the overdue compound interest which is growing fast and can put pressure on the household budget;

  • the credit score is not worsened;

  • it is possible to compare balance transfer options using loan calculators before making an application to a balance transfer credit card issuer;

  • credit card balance is available again when the borrower repays the outstanding amount;

  • a balance transfer allows to avoid personal bankruptcy;

  • approval waiting on credit card balance transfers is not long.

Cons

  • If done too often, hard inquiries reduce the credit score;

  • it shortens the term of the loan and may pose a risk to the lender;

  • The habit of making frequent transfers can lead to avoiding repayments and accumulating debts instead of improving the budget,

  • since they cannot be considered as income for the household;

  • the debt is still there and should only be repaid over a more extended period and at a lower interest rate (if the credit card product is selected correctly after a thorough analysis of its characteristics);

  • balance transfer is done within the limit of the new card;

  • before the balance transfer credit card is approved, the borrower has to continue with repayment on the old credit card and its terms;

  • promotional interest rate is a temporary relief of debt pain, thus the borrower has to put efforts to repay exposure in full or as much as possible within the promotional term before interest rate becomes standard;

  • balance transfers work only if the borrower does not use this option often;

  • the borrower can't perform balance transfer using the services of the same issuer;

  • it takes time to find the best balance transfer offers;

  • balance transfer cards charge regular interest when the promotional rate period is over.

There are two sides to applying for a balance transfer credit card: On the one hand, it's a convenient way to pay less, avoid the annual fee, and quickly improve your credit score, as well as get better terms on such an expensive credit instrument as a credit card. On the other hand, it can also encourage irresponsible behavior when borrowers keep applying for new balance transfer credit cards, destroying their credit score until they are released from their balance transfer credit card application, and when people rely too much on being able to borrow money instead of developing good financial habits, working with a personal budget, saving to buy something more significant, and looking for new sources of income.

In any case, the decision to apply for a balance transfer should be well weighed, and it pays to at least consult with the advisor at the bank or other financial institution card issuers to ensure all the terms and balance transfer rates of the credit card are properly understood.

FAQ

Can balance transfers hurt your credit?

If the borrower makes frequent balance transfers and shortens the term of previous loans and credit cards, this, along with frequent hard inquiries from lenders, will reduce the credit score.

If the borrower does not use balance transfers too often, the credit score may improve, provided the loan is well serviced.

Can you be denied a balance transfer?

Yes, a balance carryover can be denied. One of the reasons may be that the borrower is trying to obtain this service from the same lender. The second reason may be related to the applicant's credit score because a balance transfer requires a very good credit score, and a credit score of less than 669 may mean a negative response to a balance transfer request.

How long does balance transfer take in Canada?

Unlike getting a credit card, a credit card balance transfer is never instant because the issuer (new lender has to check multiple things before approval. Generally, according to open sources, a balance transfer might take up to six or even eight weeks.