Why do we recommend the BMO Preferred Rate Mastercard?
The BMO Preferred Rate Mastercard stands out for its affordability and practical benefits. One of the primary reasons we recommend this card is its low annual fee of $29, which is waived for the first year. This makes it an excellent choice for those looking to minimize their credit card expenses.
Additionally, the card offers a competitive interest rate of 13.99% on purchases, which is significantly lower than the typical 19.99% rate found with many other cards. This lower rate can lead to substantial savings for cardholders who carry a balance.
A standout feature is the introductory balance transfer rate of 0.99% for nine months, with a 2% transfer fee. This offer can be incredibly beneficial for individuals looking to consolidate high-interest debt from other credit cards onto a single card with a much lower rate, potentially saving hundreds in interest charges over the promotional period.
Moreover, the BMO Preferred Rate Mastercard includes purchase protection and extended warranty coverage, adding an extra layer of security for your purchases. This ensures that you are protected against theft, damage, or loss for a certain period after the purchase and extends the manufacturer’s warranty on eligible items.
When can the BMO Preferred Rate Mastercard be useful?
The BMO Preferred Rate Mastercard can be especially useful in several situations. Firstly, it is ideal for individuals who frequently carry a balance on their credit card. The low interest rate of 13.99% means you’ll incur less interest over time, which can make managing and paying off debt more manageable.
Secondly, the card’s 0.99% introductory rate on balance transfers for nine months is perfect for those looking to consolidate higher-interest credit card debt. By transferring balances from other cards, you can significantly reduce the amount of interest you pay, allowing more of your payments to go toward reducing the principal balance.
Additionally, the BMO Preferred Rate Mastercard is beneficial for everyday purchases due to its purchase protection and extended warranty features. This means that if something you buy is stolen, damaged, or lost shortly after purchase, or if the manufacturer’s warranty runs out, you still have coverage. This can save you money and provide peace of mind when making significant purchases.
Finally, for those who prioritize low fees and interest rates over rewards and perks, this card offers a straightforward and cost-effective solution. Its simplicity and affordability make it an attractive option for those who want to avoid the complexities and higher costs associated with many rewards cards.
Benefits of the BMO Preferred Rate Mastercard
The BMO Preferred Rate Mastercard offers several key benefits. One of the most notable is its low interest rate of 13.99% on purchases and 15.99% on cash advances, which can lead to significant savings for those who carry a balance. The card also includes a 0.99% introductory rate on balance transfers for nine months, with a 2% transfer fee, making it a valuable tool for debt consolidation.
Additionally, the card provides purchase protection and extended warranty coverage, ensuring that your purchases are protected against theft, damage, and loss, and extending the manufacturer’s warranty on eligible items. This adds value and security to your purchases without any additional cost. The low annual fee of $29, which is waived for the first year, further enhances the card’s affordability and appeal.
Disadvantages of the BMO Preferred Rate Mastercard
Despite its benefits, the BMO Preferred Rate Mastercard has some drawbacks. It does not offer a rewards program, meaning cardholders won’t earn points, cash back, or travel rewards on their spending.
Additionally, the balance transfer offer includes a 2% transfer fee, which can add up depending on the amount being transferred. Lastly, the card lacks premium benefits such as travel insurance, making it less appealing for frequent travelers or those seeking more comprehensive coverage.
How is the credit analysis done for the BMO Preferred Rate Mastercard?
The credit analysis for the BMO Preferred Rate Mastercard involves evaluating the applicant’s creditworthiness based on several factors.
Applicants need to provide personal information, including their income, employment status, and existing debt levels. A key factor in the approval process is the applicant’s credit score. Typically, a score of 660 or higher is recommended for approval.
BMO assesses the applicant’s ability to manage credit responsibly, looking for a history of on-time payments and low credit utilization. This comprehensive review helps determine the applicant’s risk level and appropriate credit limit.
The bank also considers the applicant’s overall financial health, including income and debt-to-income ratio, to ensure they can manage the credit responsibly.
Is there a maximum and minimum amount for this credit card?
The BMO Preferred Rate Mastercard does not specify a minimum or maximum credit limit publicly, as these amounts can vary based on the applicant’s creditworthiness and financial situation.
The credit limit is determined during the application process, taking into account factors such as the applicant’s credit score, income, and existing debts. Higher credit scores and incomes typically result in higher credit limits, providing more flexibility for cardholders.
Do you want to apply? Learn how to get the BMO Preferred Rate Mastercard here
If you're interested in applying for the BMO Preferred Rate Mastercard, click the button below to be directed to the application page. There, you can fill out the application form with your personal and financial information.
Make sure to review the terms and conditions carefully before submitting your application.