Can You Do Multiple Balance Transfers?

What happens when one balance transfer isn't enough? Can you — and, more importantly — should you consider multiple balance transfers?

We found that:

1. Doing another balance transfer on your remaining balance can save you interest.
2. You can transfer multiple balances to one card, but there are some limitations.
3. You can do another transfer to an existing balance transfer card, depending on your card's policy.

You can save tons in interest costs with any of these three balance transfer options. Just remember to consider the potential repercussions.

Multiple balance transfers are possible and can be a strategic move for managing credit card debt.

The principle is straightforward: if you've done a balance transfer once, you can do it again. In fact, if you continue struggling with high interest rates on an existing card, transferring that balance to a new card with a more favorable rate can be a smart decision.

While multiple balance transfers can temporarily relieve high interest, they don't negate your accumulated debt. Consider them more as band-aid solutions in managing interest rates and payments while you're focused on paying down your debt.

If you still have a balance after the introductory period and can’t pay it off in three months or less, you can transfer it to a new credit card to save on interest payments.

Ideally, you should get approved for another 0% introductory credit card to maximize savings. But if the previous balance transfer card application hurt your credit score, you might find yourself qualifying for a low-interest APR, not 0%. This is still better than paying standard interest charges on your existing balance transfer card.

You may not qualify for a balance transfer card with great offers if you have a bad credit score. In this case, you can consider other debt management strategies.

You can transfer multiple high-interest debts to one balance transfer credit card. Some cards even allow debts other than credit card debts, like personal loans.

Card issuers have different policies regarding balance transfers. During the application, ask the card issuer if you can transfer specific debts to your card. Issuers have the discretion on what types of debts to accept.

If you have less common debts, you might want to see if your issuer provides balance transfer checks. This works like balance transfer cards, but instead of the card issuer doing the balance transfer themselves, they’ll issue the check on your behalf. You can cash it and use the proceeds to pay your debtors. The amount will reflect on your card as a balance transfer subject to the card’s terms and conditions.

How many balances you can transfer also depends on your new card’s credit limit and your issuer’s policies. Some card issuers allow partial balance transfers, while others deny requests completely, especially if the balance exceeds the limit.

Ideally, you can do another transfer onto the credit card you already used for a balance transfer. However, card issuers have different policies regarding this.

A good example is American Express. After reviewing 20 credit cards for balance transfers, we found that only American Express explicitly limits the number of times you can transfer balances. According to its policy, you’re only allowed up to two balance transfers, with up to four accounts per balance transfer request.

Most cards allow another balance transfer as long as you don’t exceed your limit and you initiate the transfer within the given period. It’s also worth noting that you can’t transfer a balance from the same card issuer or within the same affiliate.

Multiple balance transfers aren’t necessarily bad, especially if they help you pay off your debt faster. However, this strategy may have a more lasting effect on your credit score.

First, maxing out your balance transfer credit card can lower your credit score, even if your overall credit utilization is low. Additionally, applying for another balance transfer card and making repeated transfers can shave points off your credit score. It shows debt dependency, especially if you’re not making much of a dent in your balance. Using balance transfers can give you a temporary break from high interest rates, but it doesn't make your original debt disappear.

However, if you’re zeroed in on clearing your debts, multiple balance transfers can help, and it’s easier to rebuild your credit once you're debt-free.

Multiple balance transfers have the same benefits and disadvantages as a single balance transfer. While it's possible to continue transferring balances, it does have some long-term implications. Continually transferring balances without making significant repayments can lead to a cycle of perpetual debt, potentially worsening your financial situation.

You should consider multiple balance transfers if:

• You’ll have significant interest savings. You can use this balance transfer calculator to compute potential savings.
• You have multiple high-interest debts that you need to consolidate.
• You can’t pay off your remaining balance within three months or less.
• You can qualify for another 0% or lower interest rate card. This is usually attainable if you have at least a fair credit score (580+).
• You don’t plan on taking or applying for a major loan, like a mortgage or auto loan.

The key to successfully leveraging multiple balance transfers is to remain mindful of your financial habits, ensuring that balance transfers do not encourage further debt accumulation. When considering a balance transfer, consider your ability to repay the balance within the promotional period.

The goal of balance transfers is to be debt-free, not just to shift balances around. Breaking the balance transfer cycle may require major changes to your financial habits. Stay committed and disciplined in following your budget plan. Consistency is critical for achieving financial stability, and the key to this lies in making your plan part of your routine.

Since doing multiple balance transfers hurts your credit score, you’ll need to put in some work to improve it. You can take the following steps to start improving your credit:

• Aggressively pay off your debts before the balance transfer period ends: This will improve your overall credit history and improve your credit score. If you’re considering upgrading your credit card after fully paying it off, you can qualify for a better one.

• Keep your credit utilization low: As you start paying off your credit card, you’ll see your total credit utilization decrease. Aim to keep your credit utilization below 30%.

• Don’t cancel your credit card: This is especially important if it won’t cost much to maintain. Canceling your credit card lowers your credit utilization ratio, which can hurt your credit score.

• Use your credit card to pay for utilities: Account inactivity may cause your card company to close your account. Keep it active by using it to pay for small items and essentials. Pay in full and on time on every due date to avoid interest.

• Check your credit report for any errors: A recent study suggested almost half of people have incorrect marks on their credit reports. You can get your free credit report from each agency every year.

With some time and effort, you can increase your credit score and minimize the impact of completing multiple balance transfers.

If you’re managing credit card debt, you have other options beyond balance transfers that could help you effectively manage your financial situation.

To further guide you in navigating the complex world of balance transfers, here are answers to some of the most commonly asked questions on the topic.