With purchase interest rates averaging around 20% in Canada, having a balance and not paying it off quickly will send your financial state plummeting like a skydiver that left that "backpack-looking-thing" on the plane.
But with the
It's the best balance transfer credit card in Canada right now, so it's definitely worth giving it a deep-dive review. Let's see what it can do for you.
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$20 GeniusCash + 0% on balance transfers for 12 months (3% fee) + No annual fee.*
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MBNA True Line Mastercard details
So what does this Mastercard have to offer?
It offers a lower interest rate of 12.99% on purchases and balance transfers made outside of the promotion period – a savings of around 8% compared to the usual APR of most credit cards.
Sadly, the cash advances rate is still 24.99%, so you don’t really get any savings there.
However, the introductory balance transfer offer is terrific. You’ll get a low rate of 0% for 12 months – a whole year of not having to pay interest.
To top it off, it’s all for no annual fee. Even more savings to help you get a grip on your debt.
And while this card offers no rewards, that’s not what it’s for. Its sole purpose is to get your finances in order, and help eliminate your credit card debt. Once you have that sorted out, you can start focusing on rewards again.
Free $40 GeniusCash
To top it off, for a limited time, when you apply for the MBNA True Line Mastercard using our link, you’ll receive $40 in GeniusCash when you’re approved.
All you have to do is go to our offers page, select the credit card you’re interested in, and apply through our link. If you’re approved, you’ll get your GeniusCash either through PayPal or an Interac e-Transfer within 12 weeks.
Here’s how much you could save on interest
So with the ultimate goal of saving money on interest, how much could you save?
Fortunately, our interest calculator is here to save you from doing the math yourself:
Credit Card Interest Calculator
Find out how much you could save with your new rate, plus how long it’ll take to pay off your debt. Simply enter in your current rate, your new rate, and how much you pay per month.
For more details on how it works, head here.
The do’s and don’ts of a balance transfer credit card
While this card is great and will give you a big helping hand with your debt, there are a few rules to remember when taking advantage of its balance transfer offer.
Related: Balance Transfer Credit Cards 101
Do – Transfer all your balances to this card
Transfer all your balances to this card to take advantage of the low 12.99% transfer rate.
Also note – you won’t be able to transfer balances from existing MBNA OR TD cards. You can only transfer balances from other Canadian banks.
Don’t – Use this card to make purchases
Once you’ve made a balance transfer, don’t make any purchases with this card. And it’s not just because it doesn’t offer rewards.
When you make payments on a credit card, most of them will apply your payments to the balance that has the lowest interest rate. So unless you pay off the whole balance, you’ll be making payments towards your balance transfers at 12.99%, and your new purchases will start accruing interest with a rate of 12.99%, defeating the purpose of what you’re trying to accomplish.
So basically, make your transfer, and put the card away somewhere you won’t use it.
Do – Make your minimum monthly payment on time
It should go without saying – you may be paying less interest, but you still need to make at least the minimum payment that’s listed on your credit card statement.
But it’s even more important that you make your payments on time when you make a balance transfer.
Miss any 2 payments within 12 months, and your interest rate shoots up to 21.99%. Ouch.
Always remember to make your minimum payment, and make it on time.
Don’t – Use this card once your balance is paid off
Unless your credit score won’t allow it, don’t use this card once your balance has been paid off. You’ll be missing out on valuable rewards you could earn with another card, which can help you save money in other parts of your life.
And even though it does have a lower interest rate, you just got out of credit card debt hell, and you don’t want to be tempted by having a lower interest rate card kicking around.
If you have a poor score and can’t replace your card, then keep using it to help rebuild your credit.
Credit card debt doesn’t have to be scary
So while credit card debt is obviously something we want to avoid in the first place, it doesn’t have to be the end of the world.
The right credit card can help you make a serious dent in what you owe, and help get you back on the right financial path.
And the
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