Are you struggling to pay off credit card debt due to the amount you owe? Balance transfer credit cards with a 0% or low balance transfer rate is one way to address this problem.
It is essential to pay off your credit card balance by the due date to avoid paying a high-interest rate. The average interest rate falls between 19% and 29% in Canada. Therefore, a $1,000 balance on your credit card will cost you between $190 and $290 in interest fees alone each year.
However, there is a way out. Balance transfer credit cards are a good way to get out of credit card debt.
1. MBNA True Line Mastercard
0% interest for 12 months on balance transfers
The MBNA True Line Mastercard offers a 0% promotional balance transfer for 12 months. However, there is a 3% balance transfer fee.
Balance transfer rates increase to 12.99% after the promotional period.
With new purchases, you’ll get a low rate of 12.99%. Unfortunately, cash advances have a high rate of 24.99%.
The good thing about this card is that it has no annual fee, and there are no income requirements.
That’s not all; the MBNA True Line Gold Mastercard can also help you save with Avis Rent A Car and Budget Rent A Car. You can save a minimum of 5% internationally and 10% in Canada.
2. Scotiabank Gold American Express Card
0% interest for six months on balance transfers
The Scotiabank Gold American Express® Card offers a 0% interest rate on balance transfers for the first six months. After that, you pay a balance transfer fee of 22.99%. A 1% balance transfer fee applies.
While the annual fee is $120, it offers a flexible reward with top-class rewards multipliers across wide spending categories.
Click here to read the Scotiabank Gold American Express® Card review
3. CIBC Select Visa
0% interest for up to 10 months
The CIBC Select Visa card offers a low-interest rate balance transfer option that can help you reduce interest payments. It allows transfers up to 50% of your credit limit. If you transfer your current credit card balance to the CIBC Select Visa card, you can get 0% interest for ten months with a 1% transfer fee.
As part of this card reward, passengers are insured against common carrier accidents up to $100,000. It has a $29.00 annual fee (which is waived during the first year), and you are allowed to have up to three additional cards for free.
4. Scotiabank Value Visa Card
0.99% interest for six months
The Scotiabank Value Visa Card offer a 0.99% balance transfer for six months.
Afterward, you will receive a low ongoing interest rate of 12.99% on balance transfers, purchases, and cash advances.
The card also has a low annual fee of just $29. Like other Scotiabank credit cards, this card offers discounts at Avis car rental locations worldwide.
In conclusion
Interest rates on credit cards typically range from 19% to 29%, making even a small financial blunder quickly become an expensive obligation. Smart use of balance transfer credit cards can help minimize the financial impact.
If you choose to carry a balance and you make your minimum payments on time, a balance transfer could save you money on interest.