CIBC Select Visa Card review

What the Select Visa is designed to do

The Select Visa is a debt tool, not a rewards card. It earns nothing on purchases, but it charges 13.99% interest on purchases, cash advances and balance transfers alike. Many cards charge more for cash advances than for purchases, including CIBC’s own Dividend Platinum Visa at 22.99%, so a single low rate across all three is a real advantage.

To put the rate in context, carrying a $2,500 balance for a year at 13.99% would cost about $350 in interest, compared with about $550 at the 21.99% purchase rate on the CIBC Dividend Platinum Visa. That’s a simple estimate that ignores compounding, but the $200 gap is close to seven times the card’s annual fee.

The balance transfer offer

New cardholders get 0% interest on balance transfers for the first 10 months, with a 1% transfer fee. Moving a $5,000 balance would cost a $50 fee, and paying $505 a month would clear both the balance and the fee just as the promotional rate ends.

Once the 10 months are up, any remaining transferred balance is charged the card’s 13.99% rate, which keeps the cost down if you need a little longer. The key is to set a monthly payment that clears the balance inside the window and to avoid adding new purchases you can’t pay off right away.

Before transferring, list each balance you carry and its rate, and move the most expensive one first. The 1% fee is charged on the amount you move, so a $3,000 transfer costs $30.

Fees, interest and the fine print

The annual fee is $29, rebated in the first year under the current offer, and additional cards are free. After year one, the fee works out to about $2.42 a month.

Foreign currency purchases carry a 2.5% fee, about $25 per $1,000 spent abroad. Journie Rewards saves up to 10 cents per litre on gas, which can help offset the annual fee for regular drivers. As with any card, you avoid purchase interest entirely by paying the full statement balance by the due date.

Insurance coverage

Insurance is minimal, which fits the card’s narrow purpose. Check the certificate for the terms before relying on it.

• Common carrier accident insurance up to $100,000

Who it suits, and who should look elsewhere

The Select Visa suits anyone carrying a balance on a higher-rate card who wants a cheap way to pay it down, and people who occasionally need a cash advance and don’t want to pay a premium rate for it.

If you pay your statement in full every month, the low rate won’t help you. A no-fee rewards card would give you something back for your spending instead.

How it compares

The BMO Preferred Rate Mastercard also costs $29 with a first-year waiver and charges 13.99% on purchases, but its cash advance rate is 15.99% and its introductory balance transfer rate is 0.99% for 9 months.

The MBNA True Line Mastercard has no annual fee, a 12.99% purchase rate and 0% promotional interest on balance transfers for 12 months, though a transfer fee applies and cash advances are charged 24.99%. It has the longer promotion and no fee, while the Select Visa has the much lower cash advance rate.

Before you apply

The recommended credit score is 690 or higher, and CIBC makes the final decision based on your full credit profile. The balance transfer offer and fee rebate can change, so confirm the current terms on CIBC’s website before you apply.