Low-interest credit cards can be a smarter choice than cash-back or rewards cards for anyone who regularly carries a balance. At the typical interest rate many cards charge on unpaid balances, interest can quickly erode the value of any rewards you earn. The BMO Preferred Rate Mastercard appeals to cardholders seeking lower ongoing finance charges: it advertises a regular purchase rate of 13.99%, which helps reduce interest costs compared with many standard cards. In addition, the card’s balance transfer promotion and the issuer’s bank network can make it a practical tool for consolidating and paying down higher-interest debt.
Because it is issued by BMO, the Preferred Rate Mastercard is especially well suited to people who prefer keeping their banking and credit products with a single major financial institution. That convenience can make account management and customer service simpler for many users.
BMO Preferred Rate Mastercard
BMO Preferred Rate Mastercard
Annual fee: $29 (first year waived for some offers)
Regular purchase rate: 13.99% on purchases
Balance transfer promotion: Promotional balance transfer terms are available; typical offers may include an introductory rate for a set period with a transfer fee. Always confirm the current promotion with the issuer before applying.
Card details
| Interest rates | Purchases: 13.99% (regular); Cash advances and balance transfers: 15.99% (regular) — promotional balance transfer rates may apply |
| Income required | $15,000 (personal or household) |
| Credit score | 700+ |
4 things to know about the BMO Preferred Rate Mastercard
1. It offers a lower purchase rate than many cards
The main selling point of this card is its lower-than-average regular purchase interest rate. If you carry a balance from month to month, even a few percentage points in savings can reduce the total interest you pay over time. Lower ongoing interest may help you free up cash to pay down principal more quickly, which is the most effective way to reduce the overall cost of revolving debt.
2. Balance transfers can help simplify and reduce interest costs
A balance transfer promotion is often included with this type of card to help cardholders move debt from higher-rate accounts. Promotional terms vary and can include an introductory low or 0% rate for a limited time in exchange for a transfer fee. When evaluating such an offer, factor in the transfer fee, the promotional duration, and the regular rate that applies after the promotion ends. Done correctly, a balance transfer can lower monthly interest charges and speed up debt repayment.
3. Few extra perks, focused on price
Low-interest cards generally trade away rich rewards programs in favor of lower rates. The BMO Preferred Rate Mastercard follows that model: it is not designed for large cash-back or travel rewards, but it typically includes practical protections such as purchase protection and an extended warranty, which can be useful for everyday purchases.
4. The convenience of a major bank issuer
Because BMO is a major bank, cardholders often benefit from integrated account management, a broad branch and ATM network, and established customer-service channels. If you already bank with BMO, adding this card may simplify billing, transfers and account oversight.
Are there any drawbacks to the BMO Preferred Rate Mastercard?
While the card’s lower purchase rate is attractive, other issuers—particularly smaller banks or specialized credit card providers—sometimes offer competitive or better products in the low-interest category. When choosing a card, compare the regular purchase rate, the cash-advance and balance-transfer rates, promotional balance transfer terms, transfer fees, and the annual fee. Those factors together determine whether a card is the most cost-effective fit for your situation.
Should you apply for the BMO Preferred Rate Mastercard?
If you want a low-interest credit card from an established bank and you prioritize keeping your accounts in one place, the BMO Preferred Rate Mastercard is worth considering. If your primary goal is to get the absolute lowest promotional balance transfer terms or the lowest ongoing rates available on the market, it’s prudent to compare several offers and review current promotional packages from different issuers. Always read the full terms and conditions for interest rates, fees and promotional details before applying.
RBC Cash Back Preferred World Elite Mastercard
Annual fee: $99
Rewards: 1.5% cash back on purchases (product features may vary)
Welcome offer: Promotional cash-back offers may be available for new cardholders; confirm current terms with the issuer.
Card details
| Interest rates | Purchases and cash advances vary by product; check issuer disclosures for current rates |
| Income required | Varies by card |
| Credit score | Varies by card |
More about credit cards:
- Canada’s best credit cards
- Best no-fee credit cards in Canada
- The best BMO credit cards