The BMO Preferred Rate Mastercard®* is designed for individuals looking for a cost-effective way to manage their credit card balance. With one of the lowest interest rates offered by BMO, this card helps users save on interest charges, making it easier to manage debt and carry balances when necessary.

If you often find yourself paying interest on your credit card or want a lower-cost option for emergencies and large purchases, the BMO Preferred Rate Mastercard®* offers an ideal solution. In addition to its low interest rates, the card comes with a limited-time welcome offer that includes a 0.99% interest rate on balance transfers for the first nine months and no annual fee for the first year.

This combination of low interest and waived fees makes the card attractive for those seeking financial flexibility without breaking the bank.

Key information about the BMO Preferred Rate Mastercard®*

The BMO Preferred Rate Mastercard®* is a straightforward card with minimal frills but plenty of cost-saving potential. It has a low interest rate of 13.99% for purchases and 15.99% for cash advances, which is significantly lower than most standard credit cards.

This makes it easier to manage your finances if you occasionally carry a balance. For those who want to consolidate debt, the card also offers a special balance transfer promotion with an introductory rate of 0.99% for the first nine months, though a 2% transfer fee applies.

How does the annual fee work?

The BMO Preferred Rate Mastercard®* comes with an annual fee of $29, which is already quite low compared to other credit cards that charge fees upwards of $100 or more. However, there’s even better news for BMO customers.

If you have a BMO Performance chequing account, the $29 annual fee is rebated each year, effectively making the card fee-free for those who qualify. This adds significant value for existing BMO customers who use their chequing account for everyday banking.

How is the credit limit determined?

Like most conventional credit cards, the credit limit on the BMO Preferred Rate Mastercard®* is determined based on a variety of factors, including your credit score, income, and overall financial health. When you apply for the card, BMO will assess your creditworthiness and assign a credit limit that fits your financial profile.

Credit card benefits 

• Low interest rate: With a 13.99% interest rate on purchases, you’ll pay significantly less in interest if you carry a balance compared to most other credit cards, which often charge rates closer to 20%.
• Balance transfer offer: The card provides a 0.99% interest rate on balance transfers for the first nine months, allowing you to consolidate and pay down debt more easily.
• Waived annual fee for the first year: For new cardholders, the $29 annual fee is waived for the first year, making it an excellent deal for those who want to try out the card.
• Annual fee rebate for BMO customers: If you have a BMO Performance chequing account, the $29 annual fee is rebated every year, essentially making the card free to use.
• Purchase protection and extended warranty: The card includes purchase protection and extended warranty benefits, offering peace of mind for large purchases.
• Free additional cardholders: You can add additional cardholders at no extra cost, which is ideal for families or partners looking to share a credit card account.

Low interest rate

The standout feature of the BMO Preferred Rate Mastercard®* is its low interest rate of 13.99% for purchases and 15.99% for cash advances. These rates are among the lowest offered by any mainstream credit card, making it a solid choice for individuals who carry a balance from month to month. The lower interest rates mean that you’ll save money in the long run, as less of your payment goes towards interest and more goes towards paying down the principal.

Disadvantages

• Minimal rewards: Unlike some other credit cards that offer cashback or points for every dollar spent, this card does not provide any significant rewards program.
• Balance transfer fee: Although the balance transfer rate is low at 0.99%, a 2% transfer fee applies, which could add up depending on the amount you transfer.
• Limited premium benefits: The card lacks luxury benefits such as travel insurance or airport lounge access that come with higher-end cards.

Lack of rewards

The primary drawback of the BMO Preferred Rate Mastercard®* is its lack of a rewards program. While the card excels in offering low interest rates and cost-saving features, it doesn’t provide any points, miles, or cashback on purchases.

For those who enjoy earning rewards for their spending, this could be a significant downside. Many other credit cards offer rewards that can be redeemed for travel, merchandise, or even statement credits, which adds value to everyday purchases.

Who can apply for this card?

The BMO Preferred Rate Mastercard®* is accessible to a wide range of individuals. To qualify, you must meet the following basic requirements:

• Be at least 18 years old (19 in some provinces).
• Have a valid Canadian address.
• Meet minimum income and credit score requirements (although these are not strictly defined, a fair credit score is typically sufficient).
• Provide proof of identification and income if requested during the application process.

How to apply for the BMO Preferred Rate Mastercard®*

Applying online

The easiest way to apply for the BMO Preferred Rate Mastercard®* is through BMO’s website. Simply navigate to the card’s page and click “Apply Now.” You’ll be prompted to fill out a secure application form with your personal details, including your name, address, income, and employment information.

Once you submit your application, BMO will assess your eligibility, and you’ll typically receive a decision within 60 seconds. If approved, your card will be mailed to you, and you can start taking advantage of its low-interest benefits right away.

By phone

Alternatively, you can apply for the card by calling BMO’s customer service line, where a friendly representative will assist you throughout the entire application process. They will help you fill out the necessary information, answer any questions you may have, and ensure that your details are correctly submitted for approval.

In-person application

If you prefer a more personal approach, you can visit a BMO branch to apply for the BMO Preferred Rate Mastercard®* in person. A bank representative will assist you in filling out the application and answering any questions you might have.

In conclusion, the BMO Preferred Rate Mastercard®* is an excellent option for individuals looking for a credit card that focuses on low costs and interest savings. While it may not offer the rewards and premium perks that some other cards provide, its low interest rates and affordable annual fee make it a solid choice for those who prioritize saving money on interest and managing debt responsibly.

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