When it comes to credit cards, finding the right one can feel like navigating a maze of fees, interest rates, and benefits. Enter the BMO Preferred Rate Mastercard—a credit card designed to offer a low-interest rate and manageable annual fee, making it ideal for those who want to keep things simple without missing out on essential benefits.
With the welcome offer, including a 0.99% introductory rate on balance transfers for nine months and a waived first-year fee, the BMO Preferred Rate Mastercard provides breathing room from high interest rates and helps make everyday expenses more affordable. Let’s dive into the specifics to find out why the BMO Preferred Rate Mastercard could be the ideal option for budget-savvy Canadians.
Main features of the BMO Preferred Rate Mastercard
Issued by one of Canada’s largest and most reputable banks, the BMO Preferred Rate Mastercard is ideal for anyone seeking a simple, straightforward credit card option with a low interest rate. BMO—short for Bank of Montreal—has crafted this card with budget-conscious individuals in mind.
It’s suited to people who may carry a balance but want to avoid the high costs typically associated with credit card interest. With this card, you don’t have to worry about excessive fees or unnecessary frills. Instead, it offers the essentials: a lower-than-average interest rate, a modest annual fee, and some convenient features that enhance the overall experience.
Whether you’re new to credit cards or looking to simplify your financial life, this card provides a no-nonsense, dependable choice backed by the trusted BMO brand. And for those seeking added financial perks, there’s the option of pairing this card with a BMO Performance chequing account for a complete package of financial benefits.
Understanding the annual fee
The BMO Preferred Rate Mastercard does come with a modest annual fee of $29, which is lower than many comparable cards. This fee covers a range of valuable services and benefits designed to save you money in the long run.
Deciphering credit limits
BMO takes into account various factors, such as your income, employment status, and credit history. When you apply, you’ll provide detailed information, including your income sources and housing expenses. This information helps BMO assess your capacity to manage a line of credit responsibly, which is crucial for determining an appropriate credit limit.
For those with a solid credit score and stable income, higher credit limits are more likely. However, if you’re new to credit or have a limited credit history, your starting limit may be lower as you establish a history of responsible card use. BMO aims to provide each cardholder with a limit that aligns with their financial circumstances, ensuring that it’s manageable and sustainable.
Advantages of the BMO Preferred Rate Mastercard
- Lower Interest Rate: The standout feature, the card’s low interest rate on purchases and cash advances, makes it a prime choice for anyone who might carry a balance.
- Extended Warranty and Purchase Protection: This card offers extended warranty coverage, providing peace of mind when buying items that matter most.
- BMO PaySmart Installment Plans: BMO’s PaySmart program allows users to convert purchases into smaller, interest-free payments with a low fee, giving more control over big expenses.
- Emergency Support Worldwide: In the event of an emergency, BMO provides 24/7 support to cardholders anywhere in the world, offering assistance and protection when you need it most.
- Free Additional Cardholder: You can add a secondary cardholder at no extra cost, allowing you to share the account with a family member while keeping track of spending.
Standout advantage
What truly makes the BMO Preferred Rate Mastercard unique is its exceptional low-interest rate, which offers a substantial reduction in interest charges for users who occasionally carry a balance. With this card, you’re not just getting a low introductory rate but one of the best ongoing interest rates available, meaning it’s not just an initial perk but a lasting benefit.
Addressing potential drawbacks
- Annual Fee: Although low, the annual fee may still be a barrier for those who prefer a completely fee-free option.
- Limited Rewards: Unlike many credit cards, the BMO Preferred Rate Mastercard doesn’t offer a rewards program, meaning no points, cash back, or miles.
- Foreign Transaction Fees: This card includes foreign transaction fees, so it may not be ideal for frequent international travelers.
- Basic Insurance Coverage: While it offers purchase protection and an extended warranty, it lacks the more comprehensive insurance options some premium cards provide.
Standout disadvantage
The primary drawback is the lack of a rewards program. With no points, miles, or cash-back opportunities, this card is primarily suited to those who prioritize low interest over perks. While its low interest rate offers substantial savings, users looking for travel rewards, cash-back, or other perks may find the card lacks the additional value offered by some competitors.
Eligibility criteria
Applying for the BMO Preferred Rate Mastercard is straightforward, but there are some requirements. Applicants must be Canadian residents and of the age of majority in their province. Additionally, applicants should provide a Social Insurance Number (SIN), employment details, and information on their housing situation and income.
A reasonable credit score is also recommended, as it plays a role in the application process and influences the credit limit assigned upon approval. BMO also requires details on monthly housing expenses, such as rent or mortgage payments, which help to assess the overall financial picture.
How to apply for the BMO Preferred Rate Mastercard
Applying for the BMO Preferred Rate Mastercard is a streamlined process designed to provide a quick response, typically within 60 seconds. With multiple application options, BMO makes it easy for potential cardholders to apply in a way that’s most convenient for them, ensuring a smooth experience.
Via website
By navigating to the credit card section, you can complete an online application in minutes. You’ll be prompted to input essential information such as your name, date of birth, income details, and financial history. Once completed, BMO typically provides an instant decision. This online application is available 24/7, allowing you to apply at any time and from anywhere with internet access.
Through the mobile application
The BMO mobile app offers a seamless way to apply directly from your smartphone. Users can log in, navigate to the credit card section, and select the BMO Preferred Rate Mastercard to start their application. The app’s built-in security and ease of use make it an excellent option for those who prefer a digital approach to banking.
Through the store/branch
For those who prefer face-to-face interactions, BMO offers the option to apply for the Preferred Rate Mastercard at any local branch. You can book an appointment or simply walk in, where a BMO representative will guide you through the process. This approach is ideal for anyone who has specific questions or would like personalized advice on how the card can meet their needs.
