You must pay this fee for any unpaid balance. However, if you transfer your balance within the first 30 days as a new cardholder, you only pay 1.95% APR and a 1% transfer fee for the first six months. During this period, you can choose to pay the principal without interest.
During the introductory period, you will pay little or no interest on the debt so that you can pay off the principal balance more quickly. Note that you will pay interest on any balance you have after the offer ends (usually 6-18 months), but if you can pay off the debt early, you can save hundreds of dollars. Remember that the better your credit, the lower your regular APR on the card is likely to be. Your best bet is to pay the credit card in full each month, but when you know you’ll need to maintain your balance monthly, it’s worth getting a credit card that minimizes ongoing interest payments.
It would be a shame to try to make responsible choices about your debt – by switching to a lower interest rate so you can pay it off faster – only to have the default affect your credit and require additional fees. If you keep transferring your balances to new cards, your credit score may eventually drop to the point where you won’t be able to qualify for any new credit (or loan). If you move your balances to existing cards, your credit score will most likely not be affected. You can see a positive impact on your credit score if you transfer your balance to one new card and take steps to reduce your debt balances.
Best Balance Transfer Credit Card Offers Canada
When you transfer balances between existing cards, both the available credit and the credit utilization rate (the percentage of available credit that you use) remain the same. You can also move multiple balances from different cards simultaneously if you want to consolidate your debts in one place. Finally, you can transfer balances from credit cards with higher interest rates to the Scotiabank Value Visa card, which will help you save on interest and pay off your debt faster.
With the Scotiabank Value Visa card, you can save $195 in interest in your first year. The Visa CIBC Select* card has an April purchase of 13.99% and a low annual fee of $29, which is refundable during the first year as a cardholder+. In addition, the current welcome offer allows you to transfer your existing credit card balance to CIBC Select Visa and receive 0% APR for ten months with a 1% transfer fee.
The CIBC Select Visa Card* offers 0% interest on balance transfers (1% transfer fee) for the first ten months, after which you can expect a fixed rate of 13.99% on balance transfers, plus cash advances and 13.99% interest. 13.99% of purchases. Registering for a Scotiabank Value Visa before February 28, 2022, the first 6-month balance transfer has an ultra-low interest rate of 0.99%, which can save a lot of money from a high-interest transfer card.
For example, the BMO Preferred Rate Mastercard, currently one of Canada’s top balance transfer cards, offers a 3.99% balance transfer promotion for a limited nine-month period. The most helpful balance transfer cards are those that include an introductory offer that provides a window of time to pay off the balance interest-free before the standard APR is applied. Cards with a 2% unlimited cash bonus on purchases are rare, but cards that also offer APR benefits are even rarer.
At the end of these nine months, the promotional rate of 3.99% will expire, and the bank will calculate any balance at the regular rate on the credit card; BMO’s preferred rate is 12.99%. The interest rate will always be the base rate + some variables that depend on your credit score. For balance, the interest rate depends on your credit score.
The balances you owe in other accounts are another tricky number that lending agencies consider to show if you can pay off your debt. You may be charged a fixed late fee for late payments on this card, not to mention that late payments of any kind can also affect your credit score. If your credit limit on the new card is low, you will only be able to transfer a portion of your debt, making it challenging to manage your repayment. Learn more about how credit card interest works.
Balance transfer cards offer an excellent opportunity to pay off your debt, as more payments will go toward principal rather than interest. For example, a balance transfer credit card can reduce some of the costs associated with high-interest credit card debt by allowing cardholders to transfer existing balances to a new credit card and offer an initial 0.% APR on select credit cards. Period. Time, usually 12 to 20 months. By transferring your balance to a card with a lower activation rate, you can “pause” the accrual of interest so you can review your credit. Likewise, by transferring your balance to a card with a lower activation rate, you can “pause” new interest as you work to pay off your balance and accrue interest.
If you plan to make new purchases with your credit card outside of your balance, make sure the card you choose also has a relatively low-interest rate on purchases. Then, close the card after paying the balance and open a credit card with a lower interest rate. Tender. A balance transfer fee is usually charged upfront, varies by a bank (and sometimes card), and is usually a flat fee or a percentage of the balance you transfer. The card’s fee is 5% of the transfer amount ($5 minimum), which can significantly reduce your potential interest savings. In addition, you may lose promotional rates if you don’t pay with your new card.