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BMO Preferred Rate Mastercard Review 2024

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The BMO Preferred Rate Mastercard is a low-interest credit card that would appeal to anyone who typically carries a balance.

Low-interest credit cards are few and far between in Canada. Other than a handful of options, you are stuck with paying at least 19.99% if you do not pay off your balance within the grace period.

This review of the BMO Preferred Rate Mastercard covers its benefits, fees, and application requirements.

BMO Preferred Rate Mastercard Summary

BMO Preferred Rate Mastercard

Rewards: N/A

Welcome offer: 0.99% introductory balance transfer rate for 9 months (2% fee applies).

Interest rates: 12.99% on purchases and 15.99% on cash advances.

Annual fee: $20

BMO Preferred Rate Mastercard Benefits

1. Low 0.99% balance transfer rate. Compared to a 19.99% or higher rate, this card can save you a lot of money in interest fees if you carry a large balance. A 2% balance transfer fee applies.

2. Low-interest 12.99% regular rate for purchases. Compared to the average credit card in Canada, the purchase APR is low. This rate applies to balance transfers as well after the promotional period ends.

3. Purchase protection for 90 days and extended warranty for up to one additional year.

4. A low annual fee of $20. If you have a BMO Performance Chequing account with a Performance Plan, this fee is rebated every year.

BMO Preferred Rate Mastercard Downsides

The BMO Preferred Rate Mastercard does not offer premium perks or cash back rewards.

Also, you will need a good credit score to qualify for this card.

Is The BMO Preferred Rate Card Worth It?

The BMO Preferred Rate Mastercard is easy to apply for.

Its basic eligibility requirement is that you should be a Canadian resident and have a personal income of at least $15,000 per year.

You also have to be the age of the majority in your province.

With a balance transfer rate of 0.99% for 9 months and a regular purchase interest rate of 12.99%, this card makes sense if you carry a credit card balance.

BMO Preferred Rate Mastercard Alternatives

Another card that may interest you in the low-interest category is the Scotiabank Value Visa Card. It offers a regular 12.99% purchase rate and a 0% balance transfer rate for the first 6 months.

Scotiabank Value Visa Card

Rewards: Save up to 25% off car rental rates at AVIS and Budget car rental locations.

Welcome offer: 0% balance transfer for 10 months; the annual fee is waived in the first year.

Interest rates: 12.99% on purchases and cash advances.

Annual fee: $29

For a no-fee cash back credit card that offers a low balance transfer rate of 1.95% for the first 6 months, take a look at the Tangerine World Mastercard.

Tangerine World Mastercard

Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases; VIP perks.

Welcome offer: Get an extra 10% cash back on up to $1,000 in spending in the first 2 months ($100 value).

Interest rates: 19.95% for purchases, balance transfers, and cash advances.

Annual fee: $0

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

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