BMO Preferred Rate Mastercard
Editorial Score
Compare rates and apply
Compare & Apply →Top pick
BMO Preferred Rate Mastercard
Pros
- Low interest rate
- Low annual fee
- Purchase protection
- Extended warranty
Cons
- No rewards program
- No travel insurance
- Foreign transaction fees apply
Key Features
The BMO Preferred Rate Mastercard is designed for individuals looking for a credit card that offers a lower interest rate compared to typical credit cards. Below are the key features of this product:
- Welcome Bonus: Check the current offer for potential rewards upon signing up. These can vary, so it's essential to stay updated on the latest promotions.
- Annual Fee: The fee associated with the BMO Preferred Rate Mastercard varies based on specific offers and can be waived in the first year. Always verify current terms directly with BMO.
- Interest Rates: The card features a lower standard interest rate, which can provide significant savings if you carry a balance. Given the current prime rate of approximately 7.20%, this card is beneficial for those who may not pay off their balance in full each month.
- Earning Rates: The BMO Preferred Rate Mastercard doesn't typically offer rewards points, but it focuses on providing a lower interest rate instead. This makes it a practical choice for those prioritizing interest savings over reward accumulation.
- Additional Benefits: Cardholders may also enjoy features such as purchase protection, extended warranty, and travel insurance, but these benefits can vary based on the specific product version.
Pros & Cons
As with any financial product, the BMO Preferred Rate Mastercard has its strengths and weaknesses. Understanding these can help you make an informed decision.
Pros:
- Lower interest rate compared to many standard credit cards, making it ideal for those who may carry a balance.
- Potential for a welcome bonus that can provide immediate value.
- No annual fee in the first year can be financially beneficial.
- Access to BMO’s customer service and online banking features.
Cons:
- Limited rewards program, which may not appeal to those looking to earn points or cashback.
- The variable interest rate may increase if the prime rate rises, impacting your repayment costs.
- Eligibility may be strict, requiring a higher credit score for the best rates.
- Fees and terms can vary; it’s important to read the fine print to avoid surprises.
How It Compares
When considering the BMO Preferred Rate Mastercard, it’s helpful to compare it with other similar credit cards in Canada. Here are two noteworthy alternatives:
1. Scotiabank Value Visa Card
- Annual Fee: $0 for the first year, then $29.
- Interest Rate: Generally around 13.99% to 19.99%, depending on creditworthiness.
- Rewards: Unlike the BMO card, it offers a basic rewards program.
2. RBC RateAdvantage Visa Credit Card
- Annual Fee: $0.
- Interest Rate: Starts at 12.99% and can go higher based on credit score.
- Rewards: Offers cashback on eligible purchases, making it appealing for those who spend frequently.
| Feature | BMO Preferred Rate Mastercard | Scotiabank Value Visa Card | RBC RateAdvantage Visa Credit Card |
|---|---|---|---|
| Annual Fee | Varies, waived first year | $0 first year, $29 thereafter | $0 |
| Interest Rate | Lower than average (check current rate) | 13.99% to 19.99% | Starts at 12.99% |
| Rewards | None | Basic rewards program | Cashback on purchases |
Who It's For
The BMO Preferred Rate Mastercard is well-suited for individuals who:
- Frequently carry a balance on their credit cards and want to minimize interest charges.
- Prefer a straightforward credit card option without the complexities of rewards programs.
- Are looking for a product with a potential welcome bonus and an introductory fee waiver.
- Have a solid credit score (generally above 650) to secure favorable rates.
How to Apply
Applying for the BMO Preferred Rate Mastercard is a straightforward process. Here are actionable steps to follow:
- Check Your Credit Score: Before applying, ensure your credit score is within the acceptable range. This can help you secure better terms.
- Visit the BMO Website: Go to the official BMO website to find the latest information on the Preferred Rate Mastercard and current offers.
- Gather Required Documents: Typically, you will need to provide identification, proof of income, and details of your financial history.
- Complete the Application: Fill out the online application form carefully, ensuring all information is accurate.
- Submit Your Application: Once completed, submit your application and await a response from BMO.
- Activate Your Card: If approved, you will receive your card via mail. Remember to activate it as soon as possible.
FAQ
What is the interest rate for the BMO Preferred Rate Mastercard?
The interest rate is variable and generally lower than most standard credit cards. Check BMO's website for the most current rate.
Is this card suitable for newcomers to Canada?
Yes, newcomers can apply, but they may need to provide additional documentation. Having a good credit history from another country can help.
Can I earn rewards with this card?
No, the BMO Preferred Rate Mastercard does not typically offer a rewards program. It focuses on providing a lower interest rate instead.
What happens if I miss a payment?
Missing a payment can result in late fees and potentially higher interest rates. It may also negatively impact your credit score.
How do I manage my credit responsibly with this card?
To manage your credit responsibly, try to pay your balance in full each month, keep your credit utilization low, and regularly monitor your credit report for any discrepancies.
Can I increase my credit limit?
Yes, you can request a credit limit increase after demonstrating responsible credit usage. BMO may review your account after a certain period.
Not financial advice. Rates and offers change. Read provider terms.
Ready to apply?
Compare & Apply →Our Methodology
BGR's editorial team evaluates every Canadian credit card using a 7-factor scoring model aligned with FCAC guidelines.
Data sources: FCAC, CMHC, issuer websites, Equifax Canada, TransUnion Canada. Last audit: June 2026.