Best Balance Transfer Credit Cards in Canada for 2022


Balance Transfer Credit Cards


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.
Tangerine Money-Back Credit Card
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Details
Annual Fee: $0
Purchases Interest Rate: 19.95%
Cash Advance Interest Rate: 19.95%
Min Income Requirement: $12000
Why Apply:
  • No annual fee
  • Unlimited rewards
  • Automatic monthly cash back redemption
  • Flexibility
  • Get more rewards
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On Tangerine's Secure Website

Earn an extra 10% back* for a limited time with a Tangerine Money-Back Credit Card.

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


Regarded as one of the best credit card in Canada, Tangerine Money-Back Credit Card 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 cash back 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.


If you've been looking for a credit card that offers money-back rewards, then the Tangerine Money-Back Credit Card might be right for you. The card has no annual fee and is designed to offer cash back on all purchases made with the card - anytime during the year!


Great credit card for those who would like to maximize the cashback they earn by choosing their spend categories to earn more cashback.

Viewed as one of the best credit cards in Canada, Tangerine Money-Back Credit Card 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. 

Apply for a Tangerine Money-Back Credit Card by July 31, 2022 and earn an extra 10% back (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.*


 The most notable feature is the cash back rewards. Who wouldn't want to earn money while they spend! In order to determine an estimate of how much you'll earn using this card, take your total credit card spending per month and multiply it by 1%. Typically, these card users average out to 1% cash back on purchases between the special 2% categories and 0.5% on all other purchases. If you spend $1,000 a month, you'll earn $10 ($1,000 x 0.01)!


Tangerine's Money Back Credit Card has lower than average fees as well. In addition, they are an excellent bank to work with since they're owned by Scotiabank. More often than not, Tangerine's clients benefit indirectly from Scotiabank's services without paying the big bank fees. That being said, Tangerine's services are so affordable because they don't offer in person services the way traditional banks do. If that's something you value, this card might not be right for you.


Tangerine Money Back vs World Mastercard®

Wondering what's the difference between the 2 cards? Compare the Tangerine Money Back vs World Mastercard®

 

Scotiabank Passport®  Visa Infinite* Card
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Annual Fee: $139
Purchases Interest Rate: 19.99%
Cash Advance Interest Rate: 22.99%
Min Income Requirement: $60000
Why Apply:
  • Amazing Welcome Offer
  • Bonus Earning Offers
  • Scotia Rewards Earnings
  • No Foreign Transaction Fees
  • Airport Lounge Access
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On Scotiabank's Secure Website

 

For an annual fee of $139, card holders obtain an array of travel benefits including point travel redemption, travel insurance and airport lounge access. Scotiabank boasts about this credit card because it is the only major bank in Canada that offers a credit card with no foreign transaction fees and airport lounge access.

 

  • Amazing Welcome Offer. When you spend $1,000 on the credit card within the first three months of ownership, you’ll earn 30,000 bonus points (worth about $300).
  • Bonus Earning Offers. If you spend $40,000 in a year with this credit card, you’ll earn an additional 10,000 points (worth about $100).
  • Scotia Rewards Earnings. Earn 2 Scotia points for every dollar you spend on groceries, dining, entertainment and daily transit. Earn 1 Scotia point for every dollar spent on other purchases.
  • No Foreign Transaction Fees. While the exchange rate of your foreign purchases will still apply, you’ll save money on foreign transaction fees which would typically be 2.5%.
  • Airport Lounge Access. A complimentary Priority Pass membership is provided with this credit card along with six free lounge visits per year.

The Scotiabank Passport™ Visa Infinite*Card offers 2 points for every $1 spent on grocery store, dining, entertainment, and transit purchases, and 1 point per $1 on everything else. That’s hardly best-in-class, so why does the Scotiabank Passport™ Visa Infinite* Card tie for best Scotiabank travel credit card?

Two reasons: a very lucrative bonus point offer and no foreign transaction fees.

Let’s start with the bonus points. You earn 30,000 welcome points when you spend $1,000 in the first 3 months. That’s worth up to $300, is easy to obtain, and is a solid reason to try this card for a year.

But wait, there’s more. Every year you charge $40,000 to your Scotiabank Passport™ Visa Infinite* Card, you’ll get 10,000 bonus points. If you can hit the $40,000 minimum each year, the 10,000 bonus points will nearly cancel out the $139 annual fee.

If that wasn’t enough, the Scotiabank Passport® Visa*doesn’t charge any foreign transaction fees. It comes with a suite of travel insurance benefits, Visa Infinite benefits, and includes six free airport lounge passes.

Scotia Momentum® Visa Infinite* Card
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Annual Fee: $120
Purchases Interest Rate: 19.99%
Cash Advance Interest Rate: 22.99%
Min Income Requirement: $60000
Why Apply:
  • Welcome bonus
  • No-nonsense rewards
  • Enhanced insurance package
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On Scotiabank's Secure Website

For people who love to eat and drive, the Scotia Momentum VISA Infinite Card is the best rewards credit card with a fee. It provides an unrivaled 4% cash back on food and gas along with 2% on recurring payments and drugstore purchases, and 1% on the rest. On top of that, this card also comes with comprehensive insurance benefits and concierge benefits.

  • Welcome bonus:Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). No annual fee in the first year, including on supplementary cards.
  • No-nonsense rewards Rewards are clear, transparent, easy to earn and easy to redeem. Cash back rewards are paid out annually either as a deposit to eligible chequing or savings account or credited to your credit card statement.
  • Enhanced insurance package The improved insurance package is comparable with other more premium cards. It provides comprehensive coverage on travel, including rental car collision loss or damage as well as purchase security and extended warranty protection.
  • Additional Perks. Obtain exclusive offers from Scotiabank including concierge service, competitive hotel rates and upgrades, and access to dining and wine country programs.
  • Annual Fee. Gain access to all of the above perks at the cost of $120 after the first year.

Excellent credit card with outstanding benefits and full insurance coverage.

The Scotia Momentum Visa Infinite card was the winner of the MoneySense best cashback card with a fee in 2020 - and for good reasons! Card holders earn cash back on all purchases at varying rates. There are also other perks of card ownership including access to exclusive Scotiabank events and offers, plus ample insurance coverage.

  • Special Welcome Offer. No annual fee in the first year, including on supplementary cards.
  • Tiered Cash Back Rates. Earn 4% cash back for every dollar spent on groceries and recurring bill payments. Earn 2% cash back for every dollar spent on gas and daily transit. Finally, earn 1% cash back for every dollar spent elsewhere.
  • Additional Perks. Obtain exclusive offers from Scotiabank including concierge service, competitive hotel rates and upgrades, and access to dining and wine country programs.
  • Insurance Coverage. Ample coverage comes with this credit card, such as new mobile device, trip cancellation, trip interruption, purchase protection insurance and much more.
  • Annual Fee. Gain access to all of the above perks at the cost of $120 after the first year.
American Express® Green Card
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Details
Annual Fee: $0
Purchases Interest Rate: 20.99%
Cash Advance Interest Rate: 21.99%
Min Income Requirement: Not Available
Why Apply:
  • Potential to earn 10,000 Membership Reward points
  • Points can be redeemed towards eligible purchases to reduce credit card bill
  • Early access to concerts and other events
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On American Express's Secure Website

American Express Green® Card

 

  • Welcome bonus: Earn 10,000 Bonus Membership Rewards® points when you charge $1,000 in purchases to your Card in your first three months of Cardmembership
  • Cardholders earn one Membership Reward point for every $1 spent with the card
  • Points can be redeemed toward eligible card purchases, such as groceries, dining out, and streaming services
  • Front of the Line ticket access for concerts, dining, film, and other experiences with American Express Invites
The American Express Green® Card is a points card that comes with a variety of benefits. Members receive points on every purchase and can redeem them for bill credits, gift cards, travel purchases, and eligible purchases on Amazon.ca. The card also includes special access to concerts, dining, and other experiences. As with all American Express cards, the Green Card comes with 24/7 access to customer care, fraud protection, and emergency card replacements when needed.


American Express Green® Card


The American Express Green® Card is a points card that comes with a variety of benefits. Members receive points on every purchase and can redeem them for bill credits, gift cards, travel purchases, and eligible purchases on Amazon.ca. The card also includes special access to concerts, dining, and other experiences. As with all American Express cards, the Green® Card comes with 24/7 access to customer care, fraud protection, and emergency card replacements when needed.

 

Features and Benefits of the American Express Green® Card

  • Welcome bonus: Earn 10,000 Bonus Membership Rewards® points when you charge $1,000 in purchases to your Card in your first three months of Cardmembership
  • Cardholders earn one Membership Reward point for every $1 spent with the card
  • Points can be redeemed toward eligible card purchases, such as groceries, dining out, and streaming services
  • Front of the Line ticket access for concerts, dining, film, and other experiences with American Express Invites

Pros and Cons of the American Express Green® Card

Pros

Cons

  • No annual fees
  • Potential to earn 10,000 Membership Reward points
  • Points can be redeemed towards eligible purchases to reduce credit card bill
  • Early access to concerts and other events
  • No travel insurance included with this card
  • Amex isn't accepted as widely as Visa and Mastercard


The Takeaway

The American Express Green® Card is a simple, day-to-day credit card that's ideal for consumers who are after a card without annual fees. Its Membership Rewards program is a great benefit that shows appreciation for cardholders by providing access to the rewards they want most in return for using their card. While the 10,000 point bonus is a major selling point for this card, it's important for new cardholders to keep in mind that they need to spend $1,000 in the first three months to qualify for this benefit.

 



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

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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).He is also the author of the Canadian Credit Card Guidebook.