9 Best Balance Transfer Credit Cards in Canada for May 2025
Balance transfer credit cards offer low interest rates on debt moved over from another card. These low promotional rates are typically limited to a set period, such as 0% for six months.
NerdWallet has compiled a list of the best balance transfer credit cards so you can choose the one that fits your needs.
Best balance transfer credit cards
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Earn a 0% promotional annual interest rate for 12 months on balance transfers completed within 90 days of account opening. Click "Apply Now" for details.
How balance transfer credit cards work in Canada
Balance transfer credit cards offer new cardholders an introductory low-interest rate on debt they transfer from another credit card. The rate may be as low as 0%, and promotional periods typically last six to 12 months.
Transferring your balance from one card to another allows you to take advantage of a lower rate for a set period of time. Lower rates keep your balance from growing as quickly.
If you can pay off your balance before the balance transfer card’s introductory rate ends, you may be able to save a substantial amount of interest, making balance transfer cards a practical tool for debt reduction.
That said, balance transfer credit cards often charge a fee to move your balance, so it’s important to crunch the numbers to make sure the transfer will be worthwhile.
How to compare balance transfer credit cards
Not all balance transfer cards are created equal. Consider these factors to help you decide which balance transfer card is best for you.
- Balance transfer promotional periods
Balance transfer credit cards offer their promotional interest rates for a set period of time, which vary in length from card to card. For example, BMO AIR MILES Mastercard offers an introductory interest rate of 0.99% on balance transfers for nine months, while the Tangerine World Mastercard offers a 1.95% promotional balance transfer interest rate for the first six months.
Before applying for a balance transfer credit card, be aware of the promotional period so you can choose a card that aligns with your repayment plans. Review your budget to make sure it can accommodate the monthly payments required to pay off your debt by the end of the promotional period. Any balance left at the end of the period will revert to the card’s regular interest rate, which might be no better than that of your current card.
- Rules set by the issuer
When considering a balance transfer credit card, review the terms and conditions associated with the transfer, including any limits on how much you can transfer. For example, the CIBC Select Visa Card will allow you to transfer up to 50% of your assigned credit limit.
In addition, issuers don’t usually allow balance transfers between their own cards.
Finally, unlike purchases, balance transfers aren’t eligible for an interest-free grace period. That means your transferred balance will be subject to interest right away — unless you have a 0% promotional rate.
- Impact of annual fees
Some balance transfer credit cards come with annual fees, which will affect the overall cost of the balance transfer. Depending on the amount you’re transferring, paying an annual fee may be worthwhile to get a lower interest rate or transfer fee. In addition, some cards may waive the annual fee during the promotional period.
- Balance transfer fees
Card issuers often charge fees for balance transfers: typically 2% to 3% of the amount transferred. This fee is added to the amount you transfer, so you’ll start out with a slightly higher balance than before the transfer. For example, a 1% balance transfer fee applied to a $5,000 transferred balance would bring the new balance to $5,050. A 5% balance transfer fee would bring the new balance to $5,250. Transfer fees can eat into potential interest savings, so consider this fee when comparing balance transfer offers.
- Qualification requirements
To be eligible for the lower interest rates offered by most balance transfer credit cards, your account with your current credit card must be in good standing. A strong credit score will increase your likelihood of qualifying for a new credit card. You may also have to meet minimum income requirements, depending on the card.
Balance transfer credit card alternatives
If you prefer not to get a balance transfer card, a line of credit may be a practical debt repayment alternative. Lines of credit typically charge lower interest rates than credit cards, though not as low as 0%. However, interest is charged as soon as you make a purchase (rather than after a grace period, as with credit cards) and rates are generally subject to changes based on the bank’s prime lending rate.
Frequently asked questions
Does a balance transfer card affect your credit score?
Does a balance transfer card affect your credit score?
While transferring the balance itself won’t negatively affect your credit score, applying for a new credit card will. Card providers conduct a hard credit check when assessing card applicants. Hard credit checks appear on your credit report and affect your credit score.
What happens to the old credit card after a balance transfer?
What happens to the old credit card after a balance transfer?
When you move your credit card balance to a new card, the card provider pays off the old balance on your behalf using available credit from the new card. Your old credit card account remains open, and you can continue to make purchases with the card. You’ll remain responsible for any annual fees associated with the account and repaying any balance that remains.
How do you transfer a credit card balance?
How do you transfer a credit card balance?
Apply for your new card online through the financial institution’s website or at a branch.
During the application process, the new credit card provider will typically ask you to check a box or fill out the information to set up a balance transfer from another card. Expect to provide the card number, issuer name and amount you want to transfer.
Once the credit card application is approved, the transfer will take place.
How much can I save with a balance transfer?
How much can I save with a balance transfer?
If you carry a large balance on your credit card from month to month, transferring it to a credit card with a lower rate can result in significant savings, especially if you refrain from making new purchases.
For example, let’s say you transfer a balance of $5,000 to a balance transfer card with 0% interest for 12 months, plus a transfer fee of 3%. The only cost accrued on the balance transfer card would be $150, per the transfer fee. However, if you kept the $5,000 on a 20% APR card and paid it offer in one year, the interest accrued during that time would be close to $500.
What is a 0% balance transfer credit card?
What is a 0% balance transfer credit card?
Some balance transfer credit cards offer an interest rate of 0% during the promotional period. That means a balance transferred to that card won’t accrue any interest during the introductory period, making it easier to pay off. After the 0% promotional period, any remaining balance will be subject to the card’s regular APR, which often sits closer to the average Canadian credit card purchase rate of 20%.
What are the pros of balance transfers?
What are the pros of balance transfers?
Credit card balance transfers can help you:
Pay less interest. If you typically carry a balance, a 0% interest offer on a balance transfer credit card can help you save money on ongoing interest charges.
Reduce your debt faster. High interest rates can contribute to your debt load. With a low interest rate, more of your monthly payment goes toward reducing the principal balance. This can help you pay off debt faster.
What are the cons of balance transfers?
What are the cons of balance transfers?
Consider the following drawbacks as you compare your card options:
Potential for a high ongoing rate. After the promotional period ends, your balance transfer credit card will revert to a regular interest rate, and any remaining balance will be subject to that rate — which may be as high as the one from your previous credit card.
Balance transfer limits. If you carry a large balance on your old credit card, there’s also a chance you won’t be able to transfer the entire balance over to the new card due to balance transfer limits.
Transfer fees. Expect a percentage-based fee for moving your balance from one credit card to another.
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