BMO Preferred Rate MasterCard Review -2025

Why we like the BMO Preferred Rate Mastercard

Credit cards usually fall into two camps: rewards cards that encourage spending, and low-interest cards that quietly prioritize cost control. The BMO Preferred Rate Mastercard is firmly in the second camp — and it doesn’t pretend otherwise.

What we like most is its honesty. There’s no teaser rate that jumps dramatically after a few months, and no confusing rewards math. Instead, you get a consistently lower interest rate year after year. If you’ve ever earned $40 in cash back but paid $200 in interest, you already understand why this matters.

This card works particularly well as a “pressure-relief valve” in a household. Big expense month? Emergency repair? Temporary cash flow crunch? Carrying that balance at a lower rate can meaningfully reduce stress — and cost — compared with a standard 20%+ interest card.

Why there are no rewards

It’s important to frame this correctly: the absence of rewards is not a flaw — it’s the trade-off. Rewards cards bake their costs into higher interest rates and merchant fees. Low-interest cards remove those incentives and pass the savings back to you in the form of lower borrowing costs.

If you pay your balance in full every single month, rewards cards almost always win. But if you carry balances even occasionally, a card like this can outperform rewards cards quietly, simply by charging you less for the privilege of borrowing.

How to use it smartly

1. Use it strategically, not emotionally.
   This is not the card for impulse purchases or lifestyle spending. Use it when you need flexibility.
2. Pair it with a rewards card.
   Many people keep this as a secondary card — rewards card for everyday spending, Preferred Rate for months when balances carry.
3. Avoid minimum-payment traps.
   Lower interest doesn’t mean “cheap debt.” Pay down balances aggressively whenever possible.
4. Use cash advances carefully.
   The reduced rate helps, but interest still starts immediately.

Insurance & protections

• Basic purchase protection against theft or damage for a limited period.
• Standard extended warranty coverage.
• Mastercard Zero Liability for unauthorized transactions.

Rates & fees

Best for

• 💳 Canadians who occasionally carry balances.
• 📉 Anyone prioritizing low interest over rewards.
• 🧾 People consolidating spending or managing cash flow.
• 🔄 A secondary card to complement a rewards card.

Where it falls short

• No upside for people who always pay in full.
• No premium travel or lifestyle benefits.
• Limited long-term “feel-good” value.

Community insights

Among Canadian cardholders, the BMO Preferred Rate Mastercard is often described as a “grown-up” card. It’s rarely anyone’s first credit card, but it’s often a card people keep for years as a safety net. Many users pair it with a high-earning rewards card and switch spending when they need flexibility.

AI review (straight talk)

This card won’t excite you — and that’s intentional. Its value shows up quietly, month by month, when interest charges don’t spiral out of control. If you’ve ever been burned by a high-interest balance, the Preferred Rate Mastercard feels less like a perk and more like a financial tool.

Alternatives & comparison

FAQ

Does this card earn rewards?

No. The value comes from lower interest rates, not rewards.

Is the interest rate promotional?

No. The reduced rate is ongoing, not a short-term teaser.

Is this card good for emergencies?

Yes. Many people keep it specifically as an emergency or backup card.

Final verdict & ratings

Our take The BMO Preferred Rate Mastercard is a practical, no-nonsense card for Canadians who value lower interest costs over rewards. It’s not glamorous, but it can quietly save you hundreds of dollars over time if you ever carry a balance.

Used responsibly — ideally alongside a rewards card — it becomes a powerful financial safety tool. If you never carry balances, skip it. If you sometimes do, this card can be one of the smartest additions to your wallet.