You probably receive low APR balance transfer credit card offer on a weekly basis in your mail. However, while the low interest rate on your balance transfer seems very interesting, is it really worth it?

The good news is that there is a clear answer to know how much you save by doing a balance transfer. You just have to carefully read the balance transfer credit card pamphlet and do some calculation.

Looking at how much you do save in interest with a balance transfer.

My calculation will be based on the Platinum Plus MasterCard since it has a balance transfer rate of 1.99% for the first 10 months. It is probably one of the best balance transfer card for Canadians on the market.

So let’s assume you have a $10,000 debt at a regular credit card rate of 15% and you want to do a balance transfer over to the Platinum Plus MasterCard at 1.99% for 10 months.

Scenario #1: No Balance Transfer:

If you keep you 10K balance at 15% and you pay interest only during the next 10 months, you will have to pay $1,250 in interest ($10,000*15%/12*10 months).

Scenario #2: Do a Balance Transfer at 1.99%:

So if you don’t pay your credit card balance but you switch it to a 1.99% interest rate for 10 months, you will only have to pay $165 in interest ($10,000*15%/12*10 months).

So, you save about $1,100 buy doing a balance transfer…. Wait… I told you to read carefully the balance transfer credit card pamphlet. There is a balance transfer fee…

The Balance transfer fee for the Platinum Plus MasterCard is $7.50 or 1% of the amount transferred. Therefore, you will have to pay an extra $100 to proceed with the credit card balance transfer.

Therefore, you will almost save $1,000 over the span of 10 months with the balance transfer to the new credit card. However, you didn’t solve your problem completely as your credit card still needs to get paid.

In addition to this, be careful with the rate after the low APR balance transfer promotion is over. In the case of the Platinum Plus MasterCard, the interest rate after 10 months is 17.99%. You can surely find a low fixed credit card rate after this period to switch it back and start paying it down.

If you have a car and you live in Canada, you know what being stuck in a snowstorm means. Is there anything more unpleasant than stalling in the middle of the snow while it is -30°C? This is why everybody should be a member of CAA Quebec.

CAA Quebec is actually a not-for-profit organization that provides its members (there are more than 1 millions members of CAA Quebec!) with security and peace of mind by offering them very high quality automotive, travel and residential products.

CAA Quebec is mostly known for its famous emergency road service and maintenance. This means that where you are, what ever happened to you, you simply have to call CAA Quebec and they will solve your car problem.

CAA Quebec MasterCard Offer

But there is more! CAA Quebec is now extending is offer towards financial services with his CAA Quebec MasterCard. This free credit cards offer you the opportunity to get CAA Quebec dollars on each purchase. With a 3.99% introductory rate for 6 months, the CAA Quebec MasterCard is really appealing.

Here how it works to get CAA Quebec Dollars from your credit card:

On each purchase, you earn 0.5% of the amount in CAA Quebec Dollars. In addition to this rebate, you can also earn 2¢ for every dollar spent at Couche-Tard outlets including gasoline. Therefore, when you shop at Couche-Tard, you get a 2.5% cash back reward.

So if you don’t want to get stuck this winter with your car, become a CAA Quebec member and register to the CAA Quebec MasterCard.

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Several financial advisors talk about how important is to keep a good credit score and how it could make you save money on credit cards. In fact, there are a lot of advantages available through credit cards when you have a good credit score.

What is a good credit score?

Before we start with the advantages of having a good credit score, let’s take a look at the definition of a good credit score.

Your credit score can go from 300 to 900. A good credit score is considered to be over 700. Actually, 75% of the Canadian population has a credit score over 700.

How to get a good credit score?

While this is it not the purpose of this article, here are a few guidelines to a good credit score:

- Pay your bills on times.

- Use your credit on a monthly basis.

- Do not max your credit cards or line of credits.

- Do not apply to more than 2 credit accounts per year (number of recent credit inquiries affect your credit score).

- Diversify your credit usage (loans, leases, mortgages, credit cards, lines of credit are different credit products that can help getting a good credit score).

Main advantages of getting a good credit score when looking for credit cards.

- Being approved for low interest rate balance transfer credit cards (as the MBNA Platinum MasterCard with a 1.99% interest rate on balance transfer for 10 months).

- Being approved for higher limits (useful for traveling and business purposes).

- Being approved for low fixed interest rate credit cards (such as the Capital One Platinum MasterCard with a 9.99% interest rate).

- Benefit from the best cash reward credit cards (like the PremierRewards Mastercard).

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