Best 0% Balance Transfer Credit Cards
One of the best weapons you have in your battle against debt is the 0% credit card balance transfer. With the right credit card, you can get a 0% rate for a few months.
During this time, it’s possible for the entire amount of your debt payment to go toward getting rid of your balance. This speeds things up since your payment isn’t being eaten up by interest charges. The faster you pay down your debt, and the less you pay in interest, the better off you’ll be.
The best balance transfer credit cards allow you to make significant progress in your debt pay down efforts. Use these credit cards as a tool in your debt repayment plan and they can speed up your debt payoff and save you money over time.
The MBNA Platinum Plus MasterCard Credit Card offers you a 0% interest rate for a full 12 months, making it the best balance transfer credit card in Canada. That’s an entire year available to help you demolish your credit card balances.
There is a 21-day grace period, and the regular interest rate is 17.99% on purchases. However, balance transfers have a rate of 19.99%, so if you transfer balances it makes sense to pay them off within the intro period.
There is no annual fee for this credit card. Additionally, the Platinum Plus MasterCard offers fraud protection and 24-hour customer service. You can access your account anytime online as well.
- Earn one point for every $1 spent on eligible purchases.
- Earn five points for every $1 spent on purchases at Best Western properties.
- Bonus of 20,000 points with your first purchase.
- Balance transfer rate: 1.99% APR for 10 months.
- Purchase APR: 19.99%.
- Regular balance transfer APR: 21.99%.
With the MBNA Best Western MasterCard, you can get a low interest rate of 1.99% for 10 months. Even though it’s not the same as a 0% balance transfer, it can still save you big time. You pay less in interest, and have the chance to really demolish your principal.
Not only that, but the MBNA Best Western MasterCard comes with a rewards program. You earn one point for every $1 spent on eligible purchases, plus five reward points for each dollar spent at Best Western properties. You can redeem these rewards for hotel stays, status upgrades, dining, airfare, and more. Plus, with your first purchase, you get 20,000 Best Western points — enough for a free night’s stay.
You do want to make sure you pay off your purchases as you make them, since there is a regular APR of 19.99% on this card. You also want to get your balance transfers taken care of in the first 10 months because the balance transfer APR is 21.99%.
There is no annual fee for this credit card, and you get access to MasterCard benefits like fraud protection and 24-hour customer service.
- Earn 10 PC points for each dollar spent with the card.
- Earn 20,000 PC points as a signing bonus, plus a $100 e-gift card.
- Redeem PC points for groceries and more when you buy President’s Choice items.
- Balance transfer rate: 0.97% for six months.
- Purchase APR: 19.97%
- Regular balance transfer APR: 22.97%.
Once again, the President’s Choice Financial MasterCard card isn’t a true 0% interest rate card. However, you can benefit from the 0.97% balance transfer rate for six months. This means you have six months to significantly reduce your debt. It’s a good way to aggressively pay down debt. It’s important to pay down what you can, since the regular balance transfer rate is 22.97%.
You can also earn rewards with the President’s Choice Financial MasterCard. You get 10 PC points for every dollar you spend — no matter where you shop. Your points can be redeemed for groceries and more when you shop President’s Choice items. Plus, you get up to 20,000 PC points as a signing bonus, plus a free $100 e-gift card.
As long as you are careful to pay off your purchases when you make them, and as long as you work to pay down your debt, this can be a great card choice.
On top of that, if you meet income requirements, you might qualify for the President’s Choice Financial World Elite MasterCard. This card allows you to earn 30 PC points for each dollar spent at participating grocery stores and at Shoppers Drug Mart and Pharmaprix. You can get bonuses at Esso stations and for certain travel services as well. Plus, this version of the card comes with the 0.97% APR on balance transfers for six months and no annual fee.
The Scotiabank Value VISA Card is offering a special 0% introductory rate on balance transfers for the first six months of card membership. This is a great deal and can allow you to really get rid of a large amount of your debt, as long as you aggressively pay it down in those six months.
On top of the 0% interest rate on balance transfers, the regular interest rate is quite low at 11.99%. So, if you don’t think you pay off your entire balance in the first six months, this card can help you at least slow some of the interest charges later on.
There is a $29 annual fee, but the potential interest savings can make up for that. Run the numbers to see if this card might work out for you.
Warning on 0% Balance Transfer Credit Cards
A 0% interest rate credit card can be a great tool to help you pay down debt and get on top of your finances. However, you do need to be careful.
First of all, many of these credit cards charge more once the time is up. If you haven’t paid down your debt dramatically, you could end up paying even more on your debt. Choose a balance transfer card that has a longer intro period, if possible. A card like MBNA Platinum MasterCard is a good choice because you have a full year at 0% APR. That gives you time to really plan ahead.
If you transfer $4,000 in balances to the 0% interest rate card, and you have a year to pay it down, that’s $333.33 per month. See if you can free that up each month to get rid of debt quicker.
Other cards might not offer a long introductory period, or you might have to pay a small amount of interest, like 0.97% or 1.99%. Even in these cases, you can make a significant dent in your debt if you plan ahead. Your best results come when you commit to putting a set amount toward debt reduction and you stick to that.
If you know you can’t pay off the card in the set period of time, it can help to choose a card, like the Scotiabank Value VISA. You’ll have a relatively low rate when you’re done. Pay down as much as you can during the intro period, and then keep it up. You’ll still make decent progress, and it’s much better to pay 11.99% than it is to pay 22.97% interest.
The goal is to pay off your debt as fast as you can. With a good plan and discipline, a 0% APR balance transfer card can help.