Balance transfer costs: look beyond the introductory rate

FCAC notes that balance transfers may involve fees and a temporary promotional interest rate. Record the exact start and end dates, any deadline for initiating the transfer and the conditions that can end the promotion. Compare the written offer you receive, not a rate from an older review.

Illustrative arithmetic: transferring $3,000 with a hypothetical 3% fee adds $90. If no interest or other charges applied for 12 months and the fee were added to the balance, clearing $3,090 over that period would require an average $257.50 monthly. Actual billing dates, required payments and fee treatment may differ. If that target does not fit, calculate what would remain when the promotion ends.

Ask how new purchases would accrue interest and how payments would be allocated across balance types. Using the same account for everyday spending can make the plan harder to track. A transfer confirmation also matters: continue following the original account’s payment obligations until you verify what has actually been paid.

A longer promotion is not automatically a solution to a recurring shortfall. Compare a repayment plan and other appropriate options without assuming you need another credit application. You can choose a borrowing enquiry or ask about repayment support; one does not silently authorize the other.