My Rate Compass

Best 0% Balance Transfer Credit Cards in Canada for 2021

 
Welcome Bonus
Annual Fee: $0
Purchases Interest Rate: 19.95%
Cash Advance Interest Rate: 19.95%
Recommended Credit Score
Average to Excellent (670-900)
Why we like it?
  • No annual fee
  • Unlimited rewards
  • Automatic monthly cash back redemption
  • Flexibility
  • Get more rewards
Apply Now Full Review
Why we like it

1.95% interest on the transferred balance for the first 6 months

Regarded as one of the best credit card in Canada, Tangerine provides no annual fee, a lucrative 2% cash back in up to 3 merchant categories, and 0.5% on all other purchases with no caps, tiers or limits. It provides choice, value and convenience to beginner credit card users and even works great as a secondary credit card.

  • No annual fee -The no annual fee for both primary and secondary holders means that you are not paying for your cash back.
  • Unlimited rewards -Earn as much cash back rewards regardless of the category.
  • Automatic monthly cash back redemption -Every month, Tangerine will either apply your cashback dollars against your credit card balance or deposit it directly into your Tangerine Savings Account.
  • Flexibility - You can choose 2-3 categories for the 2% cash back and change categories once every 90 days to match your spending pattern.
  • Get more rewards -Maximize your credit card rewards by choosing another cash back credit card that has bonus categories and using your Tangerine card to expand and get more bonus categories.
Credit Card snapshot
Tangerine Money-Back Credit Card Review 2021

Balance transfer offer: During your first 30 days, transfer balances and pay only 1.95% interest on the transferred balance for the first 6 months.

Earn 2% Money-Back Rewards on purchases in up to 3 categories of your choice, and 0.50% Money-Back Rewards on all other purchases.

  • 2% Rewards in your chosen categories
  • Get 0.50% money back on all other everyday purchases.

  • Money-Back Rewards are earned automatically and paid monthly, and can either be applied towards your Credit Card balance or redeemed into your Savings Account.

  • No limit on the amount of Money-Back Rewards you can earn.

  • Change your 2% Money-Back Categories to suit your everyday spending.

Optimizing your 2% Money-Back Categories to suit your everyday spending has never been easier. Choose your categories to earn the most money back.

Tangerine 2% Cash Back Categories:

      • Grocery
      • Furniture
      • Restaurants
      • Hotel-Motel
      • Gas
      • Recurring Bill Payments
      • Drug Store
      • Home Improvement
      • Entertainment
      • Public Transportation and Parking


Fees:

  • Annual: $0
  • Balance transfer: 3% with $5 minimum
  • Cash advance: $3.50 inside Canada, $5 outside Canada, plus 19.95% interest on overdue amounts
  • Foreign transaction: 2.5% per transaction
  • Missed or late payments: increased interest rates to 24.95% on all purchases
  • Over limit: $25 (Tangerine does not allow you to go over your limit unless the transaction was pre-approved)

 

Welcome Bonus
Annual Fee: $29
Purchases Interest Rate: 12.99%
Cash Advance Interest Rate: 12.99%
Recommended Credit Score
Average to Excellent (670-900)
Why we like it?
  • Save on car rentals
  • Optional insurance coverage
  • Faster checkout
  • Free supplement card
Apply Now Full Review
Why we like it

0.99% introductory interest rate on balance transfers for the first 6 months 

The Scotia Value Visa is aimed at individuals looking for a good balance transfer credit that offers decent privileges and a lower interest rate beyond the introductory promo period. Although it comes with a minimal fee, customers who cannot pay their balance in full can take advantage of the low post-promotional rate of 12.99%. Plus, if you regularly rent cars from Avis, then you might get the best value out of this card.

 

Why We Like It:

  • Save on car rentals -Save up to 25% when you use the Scotia Value Visa to book your rental cars with AVIS and other budget rental car locations in Canada.
  • Optional insurance coverage - For a small fee, depending on the remaining balance on your credit card, you can receive financial protection from a range of life events such as job loss, disability, critical illness, and loss of life.
  • Faster checkout -The payWave feature helps you save time by allowing you to simply wave the card or use the app on your mobile phone to pay for small purchases.
  • Free supplement card - Get an additional supplementary cardholder at no extra charge.
Credit Card snapshot

Scotiabank Value® Visa* Card review

0.99% introductory interest rate on balance transfers for the first 6 months 


Great reasons to get this card for your everyday purchases

Save up to hundreds of dollars a year on interest

Pay down higher interest rates balances faster

  • Stay one step ahead of your balance a lower interest rate makes this card an affordable way to finance those medium to large purchases you are making.

Transfer higher rate balances and save even more

  • Switch balances over from higher interest-rate credit cards to the?Scotiabank Value?Visa Credit Card. By consolidating your higher-rate balances, you'll save on interest and make paying bills easier.

What is a balance transfer credit card?


A balance transfer card is a type of credit card with little to no interest rate. Banks and issuers use balance transfers to entice people with existing credit card debt to transfer their balances from one card to another. By transferring your high-interest balance to a 0% interest credit card, you save money on payments.


Why do I need a balance transfer card?


Consider this: The average Canadian held $3,954 in credit card debt in 2016. 40% of us carry a balance on our cards. With credit cards having an interest rate of 19.99% or more, you could be paying at least $790 per year in interest alone!

If you have a large credit card debt that does not seem to go away, then perhaps you should consider balance transfer credit cards. You can transfer your balance from a high-interest card to a balance transfer card and enjoy low (2.99%) to 0% interest rate for 6-12 months (or possibly a longer paying period).


How does a balance transfer work?


A balance transfer allows borrowers to consolidate their debt into a single credit card to save on interest payments. This also makes it easier for you to take stock of your debt, and track your balance and payments.


Here's how it works:

Depending on your credit score, you will be approved for a balance transfer credit card.
Once approved, the issuer will ask for the following details: who you want to pay, their account numbers, and how much of the balance you are willing to pay.
You can transfer your balances from gas cards, store credit cards and other types of credit cards to your balance transfer card.
Like any other credit card, your balance transfer card has a credit limit. You can only transfer up to that amount.
Once your card balance transfer is approved, the provider will contact your creditors and pay the amount you indicated. This process usually lasts for 1-2 weeks.
You can also use checks tied to your balance transfer credit card to transfer non-credit-card balances to your new credit card.
Tip: Make sure to complete the transfer within 60 days from the date you opened your account. If you have payments due within this timeframe, make those payments by their due date to prevent late charges.


What are the balance transfer fees?


The balance transfer fee in 2017 was 3%. This means that you pay $300 in fee for a $10,000 balance transfer. Depending on how much you can save on interest charges, this may or may not be a good idea.

If you are lucky, you may find a 0% intro balance transfer rate as an ongoing promotion from a credit card company or bank. You can use an online calculator to compare credit card fees and compare offers.


What are the benefits of a credit card balance transfer?


Balance transfer credit cards are great for paying down credit card debt faster and for a lower interest rate. When used right they can:

Help you catch up on your existing debt. By transferring your balance on a low APR card, you can save money from your interest. This can be used to pay for the principal balance so that you eliminate debt ina shorter amount of time.

Make it easier for you to track your balance and payment. By consolidating your debts on one card, you only need to pay one creditor on one due date. Did you that know you can also transfer loans for appliances, cars, and other installment payments to your card? Just request for checks that are tied to your card.

Enhance your financial well-being. By dividing the balance for a longer timeframe, say 12 months, you can finally catch up on payments.

What are the downsides of a credit card balance transfer?


While a balance transfer seems a good opportunity to pass up, it does not come without downsides. While a balance transfer seems like such a good opportunity to pass up, it does not come without its downsides.

Here are the cons of a credit card balance transfer:


It requires a good credit score to get the best options.
You could end up with higher APR if you don't pay your balance in full at the end of the promotional rate.
You may get disqualified for the low promo interest rate if you miss a single payment.
A balance transfer could negatively affect your credit score. On the other hand, you can improve your score with consistent on-time payments each month.

With more credit available to you, you may be tempted to add more to your debt.
While there are downsides to a balance transfer, it is still worth considering for long-term financial planning. When used appropriately, it can help you save money and eliminate debt faster. If you are ready to choose a credit card for balance transfer, read some of our tips below.


How do I choose the best balance transfer credit card?


There are three features that you must evaluate when looking for a low balance transfer credit card:

Interest rate
Length of time of promotion
Balance transfer fee

It is best to compare these features when choosing a credit card. A good credit card comparison tool can help you with this.


Tip: When choosing between balance transfer credit cards, assess whether you can save more with a 0% interest card with a fee, or a credit card with no fee but with a 2.99% interest rate. You don't want to pay the 3% balance transfer fee just for the sake of a 0% interest promotion.


At the same time, look for cards that have a longer promotional period. This ensures that you can finish paying off your balance before the regular interest rate kicks in.

Author Bio

User
Mohamed Konate

Mohamed Konate is a personal finance expert, blogger, and marketing consultant based out of Toronto. He is a former financial services professional who worked for many years at major Canadian financial institutions where he managed the marketing strategy around various financial products ranging from credit cards to lines of credit. Mohamed is passionate about personal finance and holds a Bachelor in Business Administration from the University of Quebec (Montreal) and a Master in International Business from the University of Sherbrooke (Quebec).