"Is MBNA True Line Gold or BMO Preferred Rate Mastercard better?"

"The MBNA True Line Gold Mastercard is better for Canadians carrying a credit card balance. It charges 8.99% purchase interest — significantly lower than BMO Preferred Rate's 12.99%. The annual fee difference: MBNA True Line Gold charges $39/year vs BMO Preferred Rate's $20/year. Despite the higher annual fee, the 4% lower interest rate makes MBNA True Line Gold the better choice for anyone carrying $500 or more monthly — interest savings exceed the $19 annual fee difference almost immediately. If you carry no balance and only want a low-fee backup card, BMO Preferred Rate's $20 fee may make more sense."

"What is the interest rate on the MBNA True Line Gold Mastercard?"

"The MBNA True Line Gold Mastercard charges 8.99% annual interest on purchases — one of the lowest purchase interest rates of any credit card in Canada. The standard rate on most Canadian credit cards is 19.99%. Cash advances on the MBNA True Line Gold are charged at 24.99%. The card earns no rewards but the interest rate savings for balance-carrying Canadians are substantial: carrying $1,000/month saves approximately $110/year compared to a standard 19.99% card."

"What is the interest rate on the BMO Preferred Rate Mastercard?"

"The BMO Preferred Rate Mastercard charges 12.99% annual interest on purchases — lower than the standard 19.99% but higher than MBNA True Line Gold's 8.99%. The annual fee is $20. Cash advances are charged at 15.99%. The BMO Preferred Rate is a basic low-interest card with no rewards program. It is suitable for Canadians who want a simple, low-cost low-interest card from a major Canadian bank and may already bank with BMO."

"How much does carrying a balance cost on each card?"

"On a $3,000 average monthly balance: MBNA True Line Gold at 8.99% costs approximately $270/year in interest. BMO Preferred Rate at 12.99% costs approximately $390/year. Standard card at 19.99% costs approximately $600/year. The MBNA True Line Gold saves $120/year over BMO Preferred Rate and $330/year over a standard card, on a $3,000 balance. Net of the $39 annual fee: savings are $81/year over BMO Preferred Rate and $291 over a standard card at this balance level."

"Should I use a low-interest card or a balance transfer card?"

"If you have an existing high-interest credit card balance, a balance transfer promotional offer (0% or low-rate for 6–12 months) may save more short-term than moving to a permanent low-interest card. However, promotional balance transfer rates expire — and if you carry a balance long-term, a permanent low-rate card like MBNA True Line Gold (8.99%) is more cost-effective year over year. The best strategy: use a balance transfer promotion to pay down principal aggressively, then switch to a permanent low-rate card as a safety net."

MBNA True Line Gold vs BMO Preferred Rate Mastercard (Low Interest) 2026

For Canadians who carry a credit card balance, interest rate beats rewards. The MBNA True Line Gold and BMO Preferred Rate are two of Canada’s lowest-rate credit cards — but one is significantly better.

Quick verdict: MBNA True Line Gold Mastercard — at 8.99% vs BMO’s 12.99%, the interest savings far exceed the $19 annual fee difference for anyone carrying more than ~$475 monthly.

Side-by-Side Comparison

Feature	MBNA True Line Gold Mastercard	BMO Preferred Rate Mastercard
Annual fee	$39	$20
Purchase interest rate	8.99%	12.99%
Cash advance rate	24.99%	15.99%
Balance transfer rate	Promotional (check current)	Promotional (check current)
Network	Mastercard	Mastercard
Income required	None stated	None stated
Rewards programme	None	None
Travel insurance	None	None
Costco acceptance	✓ Yes	✓ Yes

Interest Savings Calculator

The key question: does MBNA’s lower rate save enough to justify the $19 higher annual fee?

Average Monthly Balance	BMO 12.99% Interest/Year	MBNA 8.99% Interest/Year	Annual Savings	Net Saving (vs $19 higher fee)
$200	$26	$18	$8	-$11 (BMO wins)
$400	$52	$36	$16	-$3 (BMO wins, barely)
$500	$65	$45	$20	+$1 (MBNA breaks even)
$1,000	$130	$90	$40	+$21 (MBNA wins)
$2,000	$260	$180	$80	+$61 (MBNA wins)
$3,000	$390	$270	$120	+$101 (MBNA wins)
$5,000	$650	$450	$200	+$181 (MBNA wins)

MBNA True Line Gold wins for anyone carrying over ~$475/month in average balance. Below $475, BMO Preferred Rate’s lower annual fee ($20 vs $39) makes it marginally cheaper.

Cash Advance Rate

One area where BMO Preferred Rate wins: cash advance rate.

MBNA True Line Gold: 24.99% on cash advances
BMO Preferred Rate: 15.99% on cash advances

If you take cash advances from your credit card, BMO Preferred Rate is significantly cheaper. However, cash advances from any credit card are expensive — the better strategy is to avoid them entirely regardless of which card you hold.

BMO Banking Integration

BMO Preferred Rate integrates with BMO banking products. For existing BMO banking clients, the BMO Preferred Rate offers convenient bill payment and account management in one place. MBNA (a subsidiary of TD) also integrates reasonably well but without the same BMO ecosystem convenience.

Who Should Choose MBNA True Line Gold

You carry an average balance of $500+/month on your credit card
You want the lowest purchase interest rate available in Canada (8.99%)
You’re paying down debt and want to minimize interest cost over multiple years

Who Should Choose BMO Preferred Rate

Your average balance is under $475/month (annual fee difference exceeds interest savings)
You take occasional cash advances and want a lower cash advance rate (15.99% vs 24.99%)
You bank with BMO and want integrated account management
You only want a low-fee backup card and rarely carry a balance

A Note on Balance Transfers

Both cards may offer promotional balance transfer rates — typically 0% for a limited period (often 9–12 months) on amounts transferred from other credit cards. If you have high-interest balances to pay down, a promotional balance transfer is worth exploring. After the promotional period ends, the regular purchase rate applies (8.99% for MBNA, 12.99% for BMO).

Verdict

MBNA True Line Gold is the better low-interest card for Canadians who carry a balance — the 8.99% rate saves substantially on interest. BMO Preferred Rate is a viable option for light balance-carriers or BMO banking clients who rarely carry debt and want the lowest annual fee.

Card details current as of June 2026. Interest rates are subject to change and may vary based on creditworthiness. Verify with the issuer before applying. See our Advertiser Disclosure.