Canada’s finest stability switch bank cards 2022

How does a stability switch bank card affect my credit score rating?

Once you apply for any bank card, you obtain a tough credit score inquiry that may briefly carry your credit score rating down just a few factors. This consists of stability switch playing cards. Nevertheless, this isn't a motive to keep away from making use of. 

Should you’re wanting right into a stability switch bank card, it’s probably since you’ve obtained some excellent bank card debt. Transferring that debt to be able to scale back it would have a constructive, lasting affect in your credit score rating within the medium to long run. 

The decrease rate of interest means extra of your cash goes to paying down the stability, so you'll be able to scale back your debt load quicker. A smaller debt load can enhance your credit score rating as a result of it lowers your credit score utilization—a significant credit score rating issue that measures the ratio between the stability and the overall credit score restrict. (Say you owe $600 on a bank card with a restrict of $2,000. Your credit score utilization can be 30%. Having a credit score utilization rating of 30% or decrease is taken into account good.)

When you think about every thing, the injury your debt load does to your credit score rating far outweighs the small and short-term impact in your credit score rating brought on by a bank card software. In relation to debt, at all times search for the longer-term resolution.

Our methodology

For the most effective stability switch bank cards 2022 rating, we categorized bank cards based mostly on their limited-time stability switch charges. Our rankings additionally took under consideration mounted annual rates of interest on stability transfers and purchases, buy protections and annual charges.

‡MoneySense.ca and Ratehub.ca are each owned by father or mother firm Ratehub Inc. We could also be partnered with some monetary establishments, however this doesn't affect the “Canada’s Greatest Credit score Card” rankings. You possibly can learn extra about this in our Editorial Code of Conduct.