A balance transfer credit card allows you to transfer an existing balance from one or more credit cards to a new credit card with a lower interest rate. This can help you save money on interest payments and pay off your debt faster.

Here’s how a balance transfer works:

1. Find a balance transfer credit card: Look for a credit card that offers a low promotional interest rate on balance transfers. Compare the terms and conditions of different credit cards to find the one that best fits your needs.
2. Apply for the credit card: Once you have found a credit card that you are interested in, apply for it. You will need to provide your personal and financial information, including your current credit card balances.
3. Transfer your balances: Once your application is approved, you can transfer your existing credit card balances to your new balance transfer credit card. This can usually be done online or by phone.
4. Pay off your debt: With a lower interest rate, you can save money on interest payments and pay off your debt faster. Be sure to make your payments on time and pay more than the minimum payment to reduce your debt as quickly as possible.
5. Watch for fees: Balance transfer credit cards may have fees associated with them, such as balance transfer fees or annual fees. Be sure to read the terms and conditions carefully and factor in any fees when deciding whether a balance transfer credit card is right for you.

Here are some of the best balance transfer credit cards available in Canada:

1. MBNA Platinum Plus Mastercard: This card offers a 0% promotional interest rate for balance transfers for the first 12 months. After that, the interest rate will increase to the standard rate of 19.99%. There is also no annual fee for this card.
2. Scotiabank Value Visa: This card offers a 0.99% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 12.99%. There is also no annual fee for this card.
3. American Express Essential Credit Card: This card offers a 1.99% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 12.99%. There is also no annual fee for this card.
4. CIBC Select Visa: This card offers a 0.99% promotional interest rate for balance transfers for the first 10 months. After that, the interest rate will increase to the standard rate of 13.99%. There is an annual fee of $29 for this card.
5. Tangerine Money-Back Credit Card: This card offers a 1.95% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 19.95%. There is no annual fee for this card.
6. BMO CashBack Mastercard: This card offers a 1.99% promotional interest rate for balance transfers for the first nine months. After that, the interest rate will increase to the standard rate of 19.99%. The card also offers cash back rewards and has no annual fee.
7. RBC Cash Back Mastercard: This card offers a 1.9% promotional interest rate for balance transfers for the first ten months. After that, the interest rate will increase to the standard rate of 19.99%. The card also offers cash back rewards and has no annual fee.
8. TD Cash Back Visa Infinite Card: This card offers a 0% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 20.99%. The card also offers cash back rewards and has an annual fee of $120.
9. Rogers Platinum Mastercard: This card offers a 0% promotional interest rate for balance transfers for the first 12 months. After that, the interest rate will increase to the standard rate of 19.99%. The card also offers cash back rewards and has no annual fee.
10. Simplii Financial Cash Back Visa Card: This card offers a 1.99% promotional interest rate for balance transfers for the first 10 months. After that, the interest rate will increase to the standard rate of 19.99%. The card also offers cash back rewards and has no annual fee.
11. National Bank Echo Cashback Mastercard: This card offers a 0% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 20.99%. The card also offers cash back rewards and has no annual fee.
12. Desjardins Odyssey Gold Visa: This card offers a 0% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 19.9%. The card also offers rewards points and has an annual fee of $130.
13. HSBC World Elite Mastercard: This card offers a 1.99% promotional interest rate for balance transfers for the first 10 months. After that, the interest rate will increase to the standard rate of 19.9%. The card also offers travel rewards and has an annual fee of $149.
14. Home Trust Preferred Visa: This card offers a 0% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 19.99%. The card also has no annual fee.
15. Tangerine World Mastercard: This card offers a 1.95% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 19.95%. The card also offers cash back rewards and has no annual fee.
16. Meridian Visa Infinite Cash Back Card: This card offers a 1.99% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 19.5%. The card also offers cash back rewards and has an annual fee of $99.
17. American Express Cobalt Card: This card offers a 1.99% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 21.99%. The card also offers rewards points and has an annual fee of $120.
18. Canadian Tire Triangle Mastercard: This card offers a 0% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 22.99%. The card also offers rewards points and has no annual fee.
19. BMO Rewards Mastercard: This card offers a 1.99% promotional interest rate for balance transfers for the first nine months. After that, the interest rate will increase to the standard rate of 19.99%. The card also offers rewards points and has no annual fee.
20. National Bank World Elite Mastercard: This card offers a 0% promotional interest rate for balance transfers for the first six months. After that, the interest rate will increase to the standard rate of 20.99%. The card also offers travel rewards and has an annual fee of $150.

Here’s a table summarizing the key details of the balance transfer credit cards mentioned earlier:

Please note that the details provided are subject to change and may vary depending on your specific financial situation and credit score.

Balance Transfer Credit Cards Pros

There are several potential benefits to using a balance transfer credit card:

1. Lower interest rates: Balance transfer credit cards often offer promotional interest rates that are lower than the interest rates on your existing credit cards. This can help you save money on interest payments and pay off your debt faster.
2. Consolidate debt: If you have balances on multiple credit cards, a balance transfer credit card can allow you to consolidate your debt into one payment. This can make it easier to manage your debt and keep track of your payments.
3. Pay off debt faster: With a lower interest rate, more of your payment will go towards paying off your balance rather than interest charges. This can help you pay off your debt faster and save money in the long run.
4. Rewards and benefits: Some balance transfer credit cards also offer rewards or other benefits, such as cash back or travel rewards. These rewards can help you save money or earn points towards future purchases.
5. Improve credit score: Paying off debt on a balance transfer credit card can improve your credit score by reducing your credit utilization ratio, which is the amount of credit you’re using compared to the amount of credit available to you. A lower credit utilization ratio can help improve your credit score over time.

Balance Transfer Credit Cards Cons

While balance transfer credit cards can offer many potential benefits, there are also some potential drawbacks to consider:

1. Fees: Many balance transfer credit cards charge fees, such as balance transfer fees or annual fees. These fees can add up and offset some of the potential savings you may receive from the lower interest rate.
2. Limited time offer: The promotional interest rate on a balance transfer credit card is usually only available for a limited time, such as six or twelve months. After that time, the interest rate will revert to the standard rate, which may be higher than the rate you were previously paying.
3. Credit score impact: Applying for a new credit card can temporarily lower your credit score due to a hard inquiry on your credit report. Additionally, if you are transferring balances from multiple credit cards, it can also lower your credit score by increasing your credit utilization ratio.
4. Temptation to overspend: Having a new credit card with a lower interest rate can be tempting to use for new purchases, but this can lead to further debt and higher interest payments.
5. Potential to create more debt: While a balance transfer credit card can help you pay off your debt faster, it can also create the potential for more debt if you continue to use your other credit cards or don’t have a plan to pay off your debt.

Balance Transfer Credit Cards Facts

Here are some key facts about balance transfer credit cards:

1. Lower interest rates: Balance transfer credit cards typically offer promotional interest rates that are lower than the interest rates on your existing credit cards. These rates can last anywhere from six to 18 months, depending on the card.
2. Balance transfer fees: Many balance transfer credit cards charge a balance transfer fee, which is typically around 1-3% of the balance being transferred. Some cards offer no balance transfer fees, but may have other fees associated with them, such as annual fees.
3. Credit score impact: Applying for a balance transfer credit card can result in a hard inquiry on your credit report, which can temporarily lower your credit score. Additionally, transferring a balance can increase your credit utilization ratio, which can also lower your score.
4. Limited time offer: The promotional interest rate on a balance transfer credit card is usually only available for a limited time, after which the interest rate will increase to the standard rate.
5. No new purchases: Many balance transfer credit cards do not allow new purchases during the promotional period, or they may charge a higher interest rate on new purchases.
6. Pay off debt quickly: A balance transfer credit card can help you pay off your debt faster by reducing the amount of interest you have to pay, but it’s important to have a plan to pay off your debt before the promotional period ends.
7. Rewards and benefits: Some balance transfer credit cards offer rewards or other benefits, such as cash back or travel rewards. However, these benefits may be less generous than those offered by other types of credit cards.

Balance Transfer Credit Cards FAQs

Here are some frequently asked questions about balance transfer credit cards:

1. What is a balance transfer credit card? A balance transfer credit card is a credit card that allows you to transfer the balance of an existing credit card or multiple credit cards to a new card with a lower interest rate.
2. How does a balance transfer credit card work? When you transfer your balance to a new credit card, the new card issuer pays off your old credit card(s), and you start making payments on the new card. The new card typically offers a lower interest rate for a limited time, usually six to 18 months.
3. Can I transfer balances from multiple credit cards to a balance transfer credit card? Yes, most balance transfer credit cards allow you to transfer balances from multiple credit cards to the new card.
4. How much can I transfer to a balance transfer credit card? The amount you can transfer varies depending on the card issuer and your credit limit. Some cards may have a maximum limit for balance transfers.
5. Are there any fees associated with balance transfer credit cards? Most balance transfer credit cards charge a balance transfer fee, typically around 1-3% of the balance being transferred. Some cards may also have annual fees or other fees.
6. Can I still use my old credit card after transferring the balance? Yes, you can still use your old credit card after transferring the balance, but it’s important to avoid making new purchases on the old card as this will increase your debt and interest payments.
7. Will a balance transfer credit card hurt my credit score? Applying for a new credit card can result in a hard inquiry on your credit report, which can temporarily lower your credit score. Additionally, transferring a balance can increase your credit utilization ratio, which can also lower your score. However, if you make payments on time and pay off your balance quickly, a balance transfer credit card can ultimately help improve your credit score.
8. Can I pay off the balance transfer credit card early? Yes, you can pay off the balance transfer credit card early. It’s important to have a plan to pay off your debt before the promotional period ends to avoid paying higher interest rates later.
9. How do I choose the right balance transfer credit card? When choosing a balance transfer credit card, it’s important to consider the length of the promotional interest rate, any fees associated with the card, and any rewards or benefits offered. Make sure to carefully review the terms and conditions of any card before applying.
10. Can I transfer a balance to a credit card from another bank? Yes, you can transfer a balance from a credit card issued by another bank to a balance transfer credit card. However, make sure to check with the new card issuer for any specific requirements or limitations.
11. What happens if I don’t pay off my balance transfer credit card before the promotional period ends? If you don’t pay off your balance transfer credit card before the promotional period ends, the interest rate on the card will increase to the standard rate. This rate may be higher than the rate you were previously paying and can result in higher interest charges and longer repayment periods.
12. How many times can I transfer a balance to a balance transfer credit card? You can transfer a balance to a balance transfer credit card as many times as you like, as long as you have enough available credit on the card. However, keep in mind that balance transfer fees may apply each time you transfer a balance.
13. Can I transfer a balance from a personal loan or other type of debt to a balance transfer credit card? Generally, balance transfer credit cards are designed for credit card debt specifically. However, some issuers may allow you to transfer other types of debt to the card. Make sure to check with the issuer for any specific requirements or limitations.
14. Are balance transfer credit cards a good idea for everyone? Balance transfer credit cards can be a good option for those looking to pay off high-interest credit card debt. However, they may not be the best option for everyone. It’s important to carefully consider the terms and conditions of any card before applying and have a plan to pay off your debt before the promotional period ends to avoid paying higher interest rates later.
15. Can I use a balance transfer credit card to pay off a mortgage or car loan? No, balance transfer credit cards are designed specifically for credit card debt. They cannot be used to pay off a mortgage or car loan.
16. How long does it take for a balance transfer to be completed? The time it takes for a balance transfer to be completed can vary depending on the card issuer and the old credit card company. It typically takes between 7-10 days for the balance transfer to be completed.
17. Can I transfer a balance to a card with a higher credit limit than my current card? Yes, you can transfer a balance to a card with a higher credit limit than your current card. However, keep in mind that the higher credit limit may result in higher debt if you’re not careful.
18. What happens if I miss a payment on my balance transfer credit card? If you miss a payment on your balance transfer credit card, you may be subject to late fees and your interest rate may increase. Additionally, missing payments can have a negative impact on your credit score.
19. How can I maximize the benefits of a balance transfer credit card? To maximize the benefits of a balance transfer credit card, it’s important to have a plan to pay off your debt before the promotional period ends. Make sure to make payments on time and pay more than the minimum payment to reduce your debt as quickly as possible. Additionally, avoid making new purchases on the card and be mindful of any fees associated with the card.
20. Can I transfer a balance to a card with the same bank? Yes, you can transfer a balance to a card with the same bank, but it’s important to check with the bank for any specific requirements or limitations.
21. Can I transfer a balance to a card with a higher interest rate than my current card? It’s generally not advisable to transfer a balance to a card with a higher interest rate than your current card, as it will result in higher interest charges and longer repayment periods. Make sure to carefully compare the interest rates and fees of different cards before transferring a balance.
22. Are balance transfer credit cards available in all countries? Balance transfer credit cards are available in many countries, but they may not be available in all countries. Check with your local bank or credit card issuer for availability.
23. Can I transfer a balance to a business credit card? Some business credit cards may offer balance transfer options, but it’s important to check with the issuer for any specific requirements or limitations.
24. What should I do if I’m having trouble paying off my balance transfer credit card? If you’re having trouble paying off your balance transfer credit card, reach out to your issuer to discuss your options. They may be able to offer you a payment plan or other assistance.
25. Can I cancel a balance transfer credit card after transferring a balance? Yes, you can cancel a balance transfer credit card after transferring a balance, but it’s important to make sure that the balance is paid off in full before canceling the card to avoid any fees or interest charges.