BMO Preferred Rate Mastercard Review

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BMO Preferred Rate Mastercard

The BMO Preferred Rate Mastercard (r) is one of the best low-interest credit cards in Canada. While the annual fee of $20 is waived for the first year, you get an introductory rate of 3.99% for balance transfers for up to 9 months. For example, to transfer a balance of 100 from a non-BMO credit card, your BMO Preferred Rate Mastercard will pay a promotional 3.09% interest rate for 9 months, after which a $1 transfer fee will apply. The card also has the usual protection expected from a credit card, including extended warranty coverage that doubles the manufacturer’s warranty period from one year to purchase protection and for 90 days insures your purchase against theft or damage.

This card is for those who want to save money on interest and want a low introductory balance transfer rate. If you want to pay off credit card debt, this card is a good choice for you, and you can find a similar interest rate with an annual fee of less than 20%. 

It allows customers to pay just 11.9 percent interest on any purchases they make on their card, whether for regular purchases, cash advances or balance transfers. The annual fee may seem hard to swallow at first, but if you are the right type of card user, you will find that you will save more than enough to offset the lower interest rate that this card offers. Compared to the 19.99% higher interest rate, this card can save you a lot of money in interest and fees, especially if you carry a large balance. 

The low-interest rate on BMO Preferred Rate MasterCard is the hallmark of this card and is targeted at people who are trying to lower their credit card payments.

The card also allows you to choose other fee and price options depending on your budget and spending habits. For example, if you decide not to pay the annual fee, the card will charge the annual interest rate of 1.75% on purchases, cash advances and transfers, which is the lowest of all Rewards credit cards. You also pay 1.299% interest on cash advances, about 10% less than other cards. 

There are no annual income requirements, but you must be a resident of Canada to apply. You can apply online by visiting BMO Bank’s website, which you can click here to go to the site table that redirects you to the application.

You can add several extras to your account beyond the annual fees, such as travel insurance, identity theft protection, and specialist services that allow you to monitor your credit (hopefully improved) around the clock. You can also get a BMO Performance Cheque account, a benefit plan with a lower annual fee and a 20% discount per year.

If you’re looking for a fee-free card that earns points when you redeem a plane ticket instead of cash, BMO Rewards Mastercard is worth considering. If you want a card that you can apply for immediately, the links at the bottom of BMO cards in the comments offer lower purchase and cash advance rates and the ability to earn air miles. Compared to the 25.5% earned rate on the BMO (r) Air Miles (R) Master Card and the R-2 earned rate offered by many of Canada’s best premium travel cards with an annual fee of $150, the value is evident. 

If you are looking for a card with a competitive interest rate for regular purchases, a low annual fee and a transfer rate, BMO Preferred Rate Mastercard (r) is a good option. You can transfer your balance from a high-interest card to a BMO card at a low-interest rate of 3.99%.

Not only is the lowest promotional rate on balance transfers at 3.99%, but when nine months finally end, the promotional rate on balance transfers also rises to 12.99%, which is not far from 2.29% on most other cards on the list.

My BMO Preferred Rate Mastercard (r) is perfect for anyone who wants to clear their debt faster than someone who has a credit on their credit card. If you have debt, transferring your balance to a low-interest card can effectively reduce debt. However, if you prioritize cashing out your balance each month and are used to keeping a nil balance, a cashback credit card or travel reward credit card may be a better option to maximize your spending. 

The idea is to transfer your credit card balance to its high regular interest rate and pay it off on your new card before the interest-free period ends. The card is attractive to Canadians of all ages with a low-interest rate of 12.99% and the unique ability to pay off a balance transfer of $399 in the first 9 months.

Depending on how much debt you have, interest on an unpaid balance can add hundreds of dollars. Paying a little money upfront may be worth it, but you’ll pay more interest if you don’t switch cards. If you never reach the end of the interest and fee term or your billing cycle, it doesn’t matter what interest rate is on your card because you’ll never pay it back.

The excellent interest rate offered by BMO Preferred Rate Mastercard does not come without sacrifices and will not wipe off the impact of interest on your final credit card bill, but users paying interest and fees will notice the difference. Mastercard has a consistent policy of increasing the applicable interest rate on its card (in this case, 2 months of non-payment over a 12-month period), increasing the penalty for low-interest rates from 24.99% to 16.90% for other cards. In addition, balance transfers made during the promotional period and outstanding debt will incur interest of 12.99 percent, which is lower than most cards.

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