Anyone struggling under the weight of high credit card interest rates needs to learn about Balance Transfer credit cards. A balance transfer card allows you to transfer the full or partial balance from one card to another card. Why would anyone do this? Simple. If you have a high balance on a high-interest rate credit card, you’ll want to switch that balance over to a more forgiving card with lower interest rates.

The catch is finding a card that offers really good balance transfer terms. Some Canadian credit cards charge a hefty transfer fee, eliminating the benefit of switching to the other card. So, that’s where my search began for the best 0% balance transfer credit cards that Canada has to offer. Here’s some quick data on three cards that I narrowed the list down to:

 MBNA Platinum Plus® MasterCard® – Click to Apply 

Rating: 5/5

• 12 months, longest 0% APR in Canada
• No annual fee
• Cash transfers at 0%

Apply Now

Best Western MasterCard® – Click to Apply 

Rating: 4.5/5

• 1.99% APR for 10 months
• No annual fee
• 20,000 points signup bonus

Apply Now

Scotiabank Value Visa Card – Click to Apply 

Rating: 4/5

• 1.99% APR for 6 months
• Low rates after 6 months
• Convenient payWave feature

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What I Was Really Searching For

Since I had substantial debt to transfer, I was really in the market for a card that offered me the longest 0% introductory APR period I could find. This way, I could avoid interest for as long as possible, saving me a lot of money. Additionally, I needed a card that wouldn’t pull my 0% APR rate if I was late on a payment.

It’s important to note that some credit cards offer no balance transfer fees, but only for a limited amount of time. If you don’t make the transfer in that time frame, you get charged a transfer fee. This wasn’t acceptable.

My Search Process – the Hunt Begins

I started my process online, combing the internet for the greatest balance transfer cards on the market. Once I had a list of possibilities, I carefully cross-examined each of their benefits and drawbacks. A neat spreadsheet was helpful for this stage. I had a column for each of these and plugged in the information as I got it for each credit card I researched.

Then, it was time to do a little math. While most balance transfer fees run anywhere between 3-5%, I had to consider if the lower interest a card was offering outweighed the initial balance transfer fee. Sometimes it did, and that’s where the calculator came in handy. If the balance transfer fee amount was significantly lower than the interest over time, it was a good balance transfer option. Remember, the balance transfer fee is a one-time payment, while interest comes out every month. Finally, I didn’t want a credit card that was going to tie my hands in terms of purchases. So, for example, a card with high foreign transaction fees was out.

Key Features I Looked At

While ongoing benefits such as cashback returns are great incentives, the most important features for me were:

Length of 0% Rate—As I mentioned, the main feature I considered was how long the cards were offering a 0% APR rate. The longer that period extended for, the higher a ranking the credit card got in my scoring.

Balance Transfer Fee—Additionally, I gave more serious attention to the credit cards that offered low or no balance transfer fees because I didn’t want a hefty fee cutting into my savings.

Ease of Use—Ease of use was another factor I considered. How easy is it to make the transfer? Is there an online form or automated system to make the process fast and easy? Or, is it going to be a drawn-out procedure getting my balance from my old card to the new one? This weighed in as well.

Annual Fees—The last feature I looked for was a low or no annual fee. Once again, if fees are eating up my savings margin, this card isn’t accomplishing my goal (to save money).

What’s on the Market?

Before I disclose my choice for the best 0% balance transfer card for my needs, I’ll share a couple horror stories I had to endure during my search:

• One card was very forthcoming with customer service and information. I was about to sign up when I found out that the deal wasn’t applicable to Canadian residents.
• Another one nearly cost me $5,000. I found out just in time that the balance transfer fee (a whopping 7%) would be applied if the transfer wasn’t made within the first 10 days of opening an account. It takes longer than that to get the paperwork cleared!

 Fortunately, I ultimately did find a few fantastic balance transfer cards that really made the hunt worthwhile. MBNA Platinum Plus MasterCard was the most solid 0% offer I found in Canada, even with the comparatively low 1% transfer fee. There were also some other good options including the Scotiabank Value Visa, and, while not a 0% APR, I liked the free night’s stay in a hotel that comes with the Best Western MasterCard.

My Final Choice

In the end, I went with MBNA Platinum Plus MasterCard for one simple reason: it had the features I was looking for without any of the drawbacks.

Of course, needs vary from user to user, and what’s important to me may not be as significant to you. Other factors—such as your interest in frequent flyer miles, need for travel insurance, or strength of your credit score—may factor in more heavily for you than my own criteria. So, anyone in search of their own ideal card should ask themselves before making a choice: ‘What qualities are most important to me personally in a balance transfer card?’ Your answers to that question will help you decide which is the top balance transfer card for you.

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