E Point Perfect
Finance

Canada’s best balance transfer credit cards 2022



How does a balance transfer credit card impact my credit score?

When you apply for any credit card, you receive a hard credit inquiry that can temporarily bring your credit score down a few points. This includes balance transfer cards. However, this is not a reason to avoid applying. 

If you’re looking into a balance transfer credit card, it’s likely because you’ve got some outstanding credit card debt. Moving that debt in order to reduce it will have a positive, lasting impact on your credit score in the medium to long term. 

The lower interest rate means more of your money goes to paying down the balance, so you can reduce your debt load faster. A smaller debt load can improve your credit score because it lowers your credit utilization—a major credit score factor that measures the ratio between the balance and the total credit limit. (Say you owe $600 on a credit card with a limit of $2,000. Your credit utilization would be 30%. Having a credit utilization score of 30% or lower is considered good.)

When you consider everything, the damage your debt load does to your credit score far outweighs the small and temporary effect on your credit score caused by a credit card application. When it comes to debt, always look for the longer-term solution.


Overview: Canada’s best balance transfer credit cards

*Terms may vary by cardholder. Check with the provider for details.


More on the best credit cards


Our methodology

For the best balance transfer credit cards 2022 ranking, we categorized credit cards based on their limited-time balance transfer rates. Our rankings also took into account fixed annual interest rates on balance transfers and purchases, purchase protections and annual fees.

‡MoneySense.ca and Ratehub.ca are both owned by parent company Ratehub Inc. We may be partnered with some financial institutions, but this does not influence the “Canadas Best Credit Card” rankings. You can read more about this in our Editorial Code of Conduct.



Source link

Related posts

When should you withdraw money from your corporation to invest?

Is the family responsible to pay the mortgage for a loved one who has passed away?

Making sense of the markets this week: August 7

Are you getting the most out of your credit card rewards?

Your guide to buying winter tires in Canada

What’s my RRSP contribution limit for 2021?