The best balance transfer credit cards in Canada for 2026

What is a balance transfer?

A balance transfer allows you to transfer your balance on a new balance transfer credit card, typically one that offers a low introductory interest rate for a limited time (or promotional period). This is a popular strategy for managing credit card debt, as it lets you shift your balance from a high-interest card to one with a lower rate, helping you pay off your debt faster and reduce interest costs.

How much money can you save with a balance transfer credit card?

Balance transfer credit cards can significantly reduce the amount of interest you pay, especially if you’re currently carrying a balance on a high-interest credit card. For example, let’s say you have a $5,000 balance on a credit card with a 21.99% interest rate. Here’s how the cost compares if you continue paying it down on your existing card versus transferring your credit card balance to either the MBNA True Line Mastercard or the Scotiabank Value Visa Card.

In all scenarios, you’ll pay much less interest and get out of debt much faster by switching to a balance transfer card.

However, the best balance transfer credit card depends on how quickly you can repay your balance. If you’re able to pay it down more aggressively (for example, $500 per month), the Scotiabank Value Visa Card comes out ahead thanks to its lower balance transfer fee, resulting in a lower overall cost.

If you need more time to repay your balance (for example, $300 per month), the MBNA True Line Mastercard becomes the better option. Its longer 12-month 0% promotional period gives you more time to pay down your balance before interest starts to add up. It’s therefore important to consider your monthly budget and how quickly you can realistically pay off your debt before choosing a balance transfer credit card.

Actual savings may vary depending on factors such as your current monthly payment amounts, planned payment amounts on the new balance transfer card, timing, and card terms. Use our credit card interest calculator to see how much you'll save.

How to compare and choose the best balance transfer credit card

Choosing the best balance transfer credit card involves more than just finding a 0% introductory rate. To get the most value, it’s important to compare promotional periods, fees, and how quickly you can realistically pay down your balance. Here’s what to remember when you compare balance transfer cards:

1. Balance transfer promotional periods

A longer promotional period gives you more time to repay your balance at a low or 0% interest rate. While some balance transfer credit cards offer shorter 0% periods, others extend up to 12 months or more. If you expect to make smaller monthly payments, a longer promotional period can significantly reduce the amount of interest you pay.

2. Balance transfer fee and annual fee

Most balance transfer cards charge a one-time fee that’s a percentage of your balance, often 1%-3% of the balance you’re transferring. There may also be an annual fee, as with many credit cards. Lower balance transfer fees preserve more of your available credit and free up funds to pay off your principal quicker.

3. Balance transfer window/deadline

Once you’re approved for a new balance transfer credit card, you usually need to transfer your balance within a certain period of time (often 90 days) in order to enjoy the promotional interest rate. That means you can’t apply for a balance transfer card when you don’t need it and keep it “just in case”.

4. Credit limit and transfer allocation 

Like any other credit card, your balance transfer card will come with a credit limit. Some balance transfer cards allow you to transfer up to 100% of your credit limit, while others may only allow 50%. Make sure the card you’re applying for can accommodate the amount that you need to transfer.

5. Regular interest rates 

Remember, the promotional interest rates offered are for balance transfers only. If you start carrying a balance again on purchases or cash advances, a low interest credit card could save you more money.

6. Eligibility criteria to apply 

As with any other credit card, you’ll need to meet the card issuer’s credit score and income requirements to get approved. Balance transfer credit cards often have a lower credit requirement.

7. Rules set by the issuer

Each credit card issuer has its own rules for balance transfers, including limits on how much you can transfer and how the transfer is processed. In most cases, you cannot transfer a balance between two credit cards from the same bank, so you’ll need to apply with a different financial institution.

It’s also important to note that transferred balances do not receive the same interest-free grace period as new purchases. Unless a 0% promotional offer is in place, interest begins accruing as soon as the transfer is completed.

How does a balance transfer work?

Once you’re approved for a balance transfer credit card, you can request a balance transfer through the issuer’s website, app, or by phone. The new card issuer will then pay off your existing balance, up to your approved credit limit. Note that you can transfer balances between credit cards from different financial institutions, but in almost all cases, you can’t move balances between cards from the same bank.

It is important to remember that moving a balance is not instant: It may take upwards of seven to 10 business days for the proper approvals to go through and the transferred balance to appear on your new card. Also, all new purchases on a balance transfer card will be subject to the card’s purchase interest rate – the promotional rate only applies to the existing balance you transferred to the card and not anything added afterwards.

Do balance transfers hurt your credit score?

A balance transfer can help improve your credit score over the long term if it allows you to pay down debt faster and reduce your credit utilization ratio. Credit utilization, the amount you owe compared to your total credit limit, is a major factor in determining your credit score, and lowering it can have a positive impact over time.

However, in the process of undergoing a balance transfer, you may face a few temporary effects on your credit score. For example, when you apply for a new balance transfer credit card offering a lower interest rate, you’ll receive an inquiry on your credit report, similar to the process for applying for any new credit card. That said, applying for a new balance transfer card won’t have a lasting impact on your credit report. With consistent on-time payments, your credit score can fully recover in a few months. Here’s how your credit score might change when getting a balance transfer credit card:

What to do with your old credit card after a balance transfer

After you’ve transferred your balance to a new credit card, it’s generally best to leave your credit card account open even if you’re no longer using it. This is especially true if this was your only credit card or if you’ve had it for a long time, as the length of your credit history contributes to your credit score.

You can continue to use your old credit card if needed, but if you tend to carry a balance, your new balance transfer credit card may be the better option due to its lower introductory interest rate.

If your old card has an annual fee and you don’t plan to use it, cancelling it may make sense, especially if you have other active credit accounts. While closing a card can cause a small dip in your credit score, paying down your balance and maintaining a low credit utilization ratio will have a greater long-term impact.

Pros and cons of balance transfer credit cards

Benefits of balance transfer credit cards

• Better interest rates. The major advantage of balance transfer credit cards is that their significantly lower interest rates compared to standard credit cards. This is especially true when you consider their promotional offers. Unlike the average interest rate of most credit cards (19-20%), certain balance transfer credit cards offer 0% interest promotional rates.
• Easier to pay off debt. Thanks to the low or 0% interest rates offered by balance transfer credit cards, you'll be able to focus entirely on paying off your existing debt without the added stress of accumulating more interest on the principal. However, it is critical to establish a reliable repayment plan to ensure that you don't collect interest once the promotional period ends.
• Can help improve your credit score. By consolidating debt and making consistent, on-time payments, you can lower your credit utilization and build a positive payment history, improving your overall credit score. Just remember that missing payments or maxing out your card can have the opposite effect.

Drawbacks of balance transfer credit cards

• Not made for new purchases. The low or 0% promotional rate usually applies only to the transferred balance. New purchases are charged at the regular interest rate, which can increase your costs if you continue spending.
• Limited rewards. Unlike rewards cards designed to incentivize spending, balance transfer cards prioritize debt repayment. Because of this, you're unlikely to see many rewards or extra perks with balance transfer cards. Once you've paid off your outstanding balance and built up your credit, you might want to switch over to a rewards or cash back credit card to begin earning points or cash back.
• Promotional interest rates are time sensitive. Balance transfer offers are time-limited. If you don’t pay off your balance before the promotional period ends, the remaining amount will be subject to the card’s regular interest rate. That means it’s imperative to ensure that you can clear your debt within that timeframe; otherwise, you could end up accumulating interest again.

How to apply for a balance transfer credit card in Canada

Applying for a balance transfer credit card is similar to applying for any other credit card, but there are a few additional steps to complete the transfer itself.

• Check your eligibility

Most balance transfer credit cards require a fair to good credit score, along with a steady income and Canadian credit history. Applying without meeting the requirements can result in a declined application and a temporary impact on your credit score.

• Apply for the card

You can apply online through the card issuer’s website by providing your personal and financial information, including your income, employment details, and existing debts.

• Request the balance transfer

Once approved, you can request a balance transfer through your online banking portal or by contacting the issuer. You’ll need to provide details of the account you want to transfer from, along with the amount.

• Wait for the transfer to be processed

Balance transfers are not immediate and can take several business days to complete. During this time, continue making payments on your original card to avoid late fees or interest charges.

• Complete the transfer within the promotional window

To qualify for the promotional interest rate, you’ll typically need to initiate the transfer within a set period after opening the account, often within 60 to 90 days.

Alternatives to balance transfer credit cards in Canada

If a balance transfer credit card isn’t the right fit, there are other ways to consolidate debt in Canada. The best option depends on how quickly you can repay your balance and whether you prefer flexibility or a structured repayment plan.

Balance transfer credit card vs. line of credit

A balance transfer credit card is typically designed for short-term repayment, offering a low or 0% introductory interest rate for a limited time. A line of credit works differently. Instead of a temporary promotional rate, it provides ongoing access to funds at a variable interest rate that is usually lower than a standard credit card. You can borrow and repay repeatedly, making it a more flexible option if your borrowing needs may change.

A balance transfer is generally the better choice if your goal is to aggressively pay down a fixed amount of debt, while a line of credit may be more suitable if you need ongoing access to credit.

Balance transfer credit card vs. personal loan

A balance transfer credit card is best suited for short-term debt repayment, especially if you can take advantage of a promotional rate and pay off your balance within that period. A personal loan, by contrast, provides a fixed interest rate and a set repayment schedule. This can make it easier to budget, since your monthly payments and payoff timeline are clearly defined from the start.

If you’re confident you can repay your balance quickly, a balance transfer may offer greater interest savings. If you prefer predictable payments over a longer period, a personal loan may be a better fit.

Balance transfer credit card vs. debt consolidation

A balance transfer is one way to consolidate debt, but it’s not the only option. Other forms of debt consolidation, such as consolidation loans or lines of credit, combine multiple balances into a single payment with a consistent interest rate.

The key difference is the repayment timeline. Balance transfer credit cards are most effective when you can pay off your balance within the promotional period. Other consolidation options typically give you more time to repay, but at a higher overall interest cost.

If you’re unsure which option will save you more based on your balance and monthly payments, you can use a debt consolidation calculator to compare total interest costs and repayment timelines.

Also read:

• Best low interest credit cards in Canada
• How to pay off your credit card and reduce interest charges
• How to pay down credit card debt with a personal loan
• The best credit cards in Canada for people with bad credit