BMO Preferred Rate Mastercard
The BMO Preferred Rate Mastercard positions itself as a focused tool for Canadians who want to minimize interest costs above all else. It does not chase flashy rewards or travel perks. Instead, it offers a noticeably lower purchase and balance transfer interest rate than many standard cashback or rewards cards, plus basic protections that help reduce the financial risk of everyday spending.
Key specifications
- Typical purchase and balance transfer rate: around 12.99% (rate may vary based on creditworthiness)
- Annual fee: none
- Foreign transaction fee: typically 2.5%
- Rewards: none—no points, miles, or cashback program
- Protections: purchase protection, extended warranty, and Mastercard Zero Liability coverage
What sets this card apart
The primary selling point is an interest rate that is substantially lower than what many rewards and general-purpose cards charge. Where standard credit cards often carry rates around 19.99% or higher, the BMO Preferred Rate Mastercard can deliver meaningful interest savings for cardholders who carry a balance or plan to finance large purchases over time.
Interest rates and balance transfers
Applicants should confirm their individual rate since it will depend on credit profile. For those who frequently carry a balance or intend to consolidate higher-interest debt via a balance transfer, the lower APR can translate into sizeable savings over months or years. The lower rate also makes the card a practical long-term option for managing revolving credit without incurring an annual fee.
Insurance and protections
- Purchase protection: covers eligible purchases against theft or damage for a limited time after purchase
- Extended warranty: extends manufacturers’ warranties on qualifying items
- Zero Liability: Mastercard protection against unauthorized transactions
Rewards and travel benefits: what you won’t get
This is not a rewards card. There are no points, no travel insurance suites, and no airport lounge access. For customers who reliably pay their balance in full each month and prioritize earning points, miles, or cashback, the absence of a rewards program is a significant drawback. Frequent travelers may also miss travel protections and perks that premium cards provide.
Pros
- Low interest rate: core advantage for anyone carrying a balance or consolidating debt
- No annual fee: keeps long-term ownership inexpensive
- Basic purchase protections: adds security to everyday spending
- Good for balance transfers: offers a lower-cost place to move high-interest debt
Cons
- No rewards: no points, miles, or cashback for everyday spending
- Limited travel benefits: lacks travel insurance and premium travel perks
- Foreign transaction fee: typically 2.5%, making it less attractive for international spending
- Rate variability: advertised rates depend on individual creditworthiness
How to decide
- Compare the actual APR offered based on personal credit with other low-interest cards on the market.
- Estimate interest savings by calculating current interest paid on balances versus the offered rate.
- Consider spending habits: if monthly balances are paid in full, prioritize a rewards card instead.
- Factor in foreign spending: add 2.5% for transactions abroad when comparing total costs.
“This card is purely about minimizing interest costs.”
Final verdict
The BMO Preferred Rate Mastercard is a focused, practical tool for the right user. Its clear advantage is a lower ongoing interest rate combined with no annual fee and basic purchase protections. That makes it an excellent choice for people who routinely carry balances or need to consolidate high-interest debt.
It is not a universal solution. For those who pay in full each month, chase rewards, or travel frequently, other credit cards will likely deliver more value. Before applying, compare personalized rates and weigh financial priorities to determine whether interest savings outweigh missing rewards and travel benefits.
