10 Best Balance Transfer Credit Cards in Canada for April 2025
Balance transfer credit cards offer low interest rates on debt moved over from another card. Some cards offer very low promotional rates for a set period of time, such as 0% for six months, while others offer consistently low rates but have minimal perks.
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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BACK TO TOPNerdWallet Canada selects the best balance transfer credit cards based on their overall consumer value. Our evaluation is weighted by factors: 20% average earn value, 50% intro offer, and 30% fees and interest.
Average earn value considers earning rates, rewards structure and spending categories.
The intro offer considers the welcome bonus value, promotional interest rates, and any waived fees.
Fees and interest consider interest rates for purchases, balance transfers and cash advances, and additional costs such as foreign transaction fees.
Other noteworthy features, such as insurance, special perks and extra benefits, earn unofficial bonus points.
Only cards without a standard or promo low-interest balance transfer rates were considered.
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
What is a balance transfer credit card?
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. Because of this, balance transfer cards can actually be a tool for debt reduction.
Balance transfer credit cards often charge a fee to move your balance, however, so it’s important to crunch the numbers to make sure you’ll actually come out ahead.
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 intro period, making it easier to pay off.
How do balance transfers work?
To transfer your balance from one credit card (usually with a higher interest rate) to a card offering a more attractive introductory rate, you’ll first need to apply for the new card.
Once approved, you will then request a balance transfer, listing the amount of the balance you’d like to move, along with other personal and account information.
When the transfer is approved, you will see the balance removed from the original card and added to the new card.
Keep in mind that any balance left after the promotional period ends will be subject to the regular interest rate — which is often much higher than the promotional rate.
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 resist the urge to add new purchases, and instead focus on paying off the balance during the promotional period.
For example, let’s say you have a balance of $5,000 on a credit card with a 20% APR and you’re approved for a balance transfer card that will charge 0% interest on that balance for the first 12 months, plus a transfer fee of 3%.
If you move your balance to the new card and pay it off during the promotional period, your only cost will be the transfer fee of $150, whereas paying it off your old card over those same 12 months would have cost you $550, for overall savings of $400.
Actual savings will depend on many factors, including your current monthly payment amounts, your planned payment amounts on the new card, timing and card terms.
How to compare balance transfer credit cards
Not all balance transfer cards are created equal. To compare cards and find a balance transfer offer that works best for your situation, consider:
The length of the introductory or promotional period (typically six to 12 months).
The regular interest rate (after the promotional period ends).
Any minimum or maximum transfer amounts.
Any balance transfer fee.
Any annual fee.
Other benefits or perks of the card.
Other qualification criteria.
Let’s take a closer look at these factors to help you consider which balance transfer card is best for you.
Compare credit card 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, it’s important to be aware of the promotional period so you can choose one that matches well with your plans to repay the balance. It’s a good idea to 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. That’s because any balance left at the end of the period will be subject to the card’s regular interest rate, which might be no better than that of your current card.
How does the 0% interest period work?
Some credit cards advertise interest-free balance transfers. These 0% interest offers sound attractive, and they can help you save money, as long as you understand how they work. During the interest-free period, you won’t be charged any interest on the balance you transfer (though you’ll still likely pay a transfer fee). After the 0% promotional period, any remaining balance will be subject to the card’s regular interest rate — which may be much higher.
Know the issuer’s balance transfer rules
When considering a balance transfer credit card, be aware of the terms and conditions associated with the transfer, including any limits on eligibility and 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.
Consider the impact of annual fees
Like many credit cards, some balance transfer credit cards come with annual fees, which will affect the overall cost of the balance transfer. However, it’s one more important point of comparison, and 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.
Compare balance transfer fees
Card issuers may charge fees for balance transfers, usually in the range of 2% to 3% of the amount you’re transferring. This fee is usually added to the amount you transfer, so you’ll start out with a slightly higher balance than before the transfer.
That’s why it’s crucial to consider this fee before applying for a new card. It’s one of the numbers you’ll need to review as you determine the total cost of the transfer and whether you’ll be saving money over the long run.
Let’s consider a simplified example in which you transfer that $5,000 balance from your card with a 20% APR to a card offering a 0% interest rate for the first 12 months.
If the balance transfer fee is 1%, it means you’ll start with a new balance of $5,050. But if the new card charges a 5% balance transfer fee, your new balance will be $5,250 — and that additional fee will eat into your potential interest savings, especially if you’re planning to pay off your balance quickly.
Determine whether you qualify
Qualifying a low rate on a balance transfer credit card isn’t guaranteed.
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.
How to transfer a credit card balance
The first step in transferring a credit card balance is to apply for your new card, either online through the financial institution’s website or in person 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. This includes the card number, issuer name and amount you want to transfer.
Once your credit card application is approved, the transfer will take place.
How long does it take to transfer a credit card balance?
The time it takes for a balance transfer depends on your financial institution. Some banks note that the transfer will take three or four days, while others say it may take up to three or four weeks.
Is a balance credit card transfer a good idea?
Whether or not a balance transfer credit card is a good option for you — and how much you could save — depend on many factors:
Your balance.
Your plans to fit repayment into your budget.
Promotional interest rates and period.
Transfer fees.
Card annual fees.
Eligibility and other balance transfer terms.
Pros
Pay less interest. In many cases, a 0% interest offer on a balance transfer credit card can be a good option if you carry a balance on your current card. That interest-free period will give you a break from accumulating large amounts of interest and could save you money in the long run. Even a rate that isn’t quite 0% could help you save on interest charges.
Reduce your debt faster. Normally, carrying a credit card balance from month to month means paying a high rate of interest, which increases your debt. With a low or 0% interest rate, all of your monthly payment will go toward reducing the principal. This can help you to pay off debt faster than you’d otherwise be able to.
Cons
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. Another consideration is that balance transfer credit cards charge a transfer fee that is calculated as a percentage of the amount you transfer.
Alternatives to a balance transfer credit cards
If you prefer not to get a balance transfer card, one alternative is to seek out a line of credit and use it to pay off your credit card balance.
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 does. That’s because the financial institution conducts a credit check that will show up in your credit report as a “hard hit,” which will 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 new card’s issuer will pay off the balance on your behalf, using your credit from the new card. But just because the balance on the old credit card has been paid off, it doesn’t mean the account is closed. You can still make purchases on the card and you’re still responsible for paying any annual fees associated with the account and any balance that hasn’t been transferred.
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