Can You Do a Balance Transfer With Bad Credit?

Updated: November 6, 2024

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You can still transfer balances if your credit score is between 300 and 579, but your options will be limited. Unfortunately, the best balance transfer offers are reserved for those with good-to-excellent credit ratings.

Getting a balance transfer 0% offer is difficult for individuals with bad credit due to their perceived high risk. You are likely to be limited to cards with high interest rates, low credit limits and high fees. If you’re hard-pressed to find a credit card that could give you a decent offer, try personal or debt consolidation loans. These loans offer lower interest rates than your standard credit card.

If neither a loan nor a credit card fits your situation, consider consulting with a credit counselor or exploring debt management plans as direct, actionable alternatives.

KEY TAKEAWAYS
  • Even with bad or limited credit, you can still transfer your credit card balance, although you won’t qualify for the best balance transfer offers.
  • You can also transfer a balance via debt consolidation. Some lenders accept applicants with credit scores as low as 300.
  • If balance transfer is not an option, consider alternatives such as credit counseling or other debt payoff strategies

How to Do a Credit Card Balance Transfer With Bad Credit

Getting approved for a balance transfer card when you have bad credit is difficult. Credit card companies are hesitant to offer balance transfer alternatives to consumers with poor credit scores because they view low credit scores as a sign of financial risk.

However, you may still be able to get approved for a balance transfer card if you have an excellent relationship with one of your banks. The real challenge is securing a credit card with good balance transfer offers. The process is the same whether you’re applying for a credit card through a new bank or your existing one.

  1. 1

    Identify Potential Cards

    While your options may be limited, some credit card companies offer balance transfer cards to individuals with poor credit. Unfortunately, you’re usually limited to secured credit cards, like the Discover it Secured Credit Card and Navy Federal Credit Union nRewards Secured Credit Card, which require a deposit upfront. In addition to putting up a deposit, these cards offer high interest rates, lower credit limits, and no intro period. In this case, doing a balance transfer would be pointless.

    If your credit score exceeds 580, you may qualify for some of the best balance transfer credit cards we’ve reviewed and ranked.

  2. 2

    Apply for the Card

    Apply for the credit card through the credit card company's website once you've chosen one that works for your situation. You will need to supply your financial and personal details for this. When applying for a credit card with your bank, make sure to update your financial information. It might help your chances of getting approved.

  3. 3

    Request the Balance Transfer

    If your application is successful, you can formally request the balance transfer by providing the details of the credit card debt you wish to transfer.

How to Do a Loan Balance Transfer With Bad Credit

Personal loans generally offer lower interest rates than regular credit cards, along with extended repayment terms and higher borrowing limits. They're effective for settling high-interest debts or consolidating several balances into one. Unlike credit cards, which apply an initial interest rate and then switch to a standard rate, personal loans calculate the total interest upfront and distribute it across the loan term.

Once you know your credit score and you’ve done crunching the numbers, you can kickstart your loan application process by doing the following:

  1. 1

    Gather Information on Current Debts and Make a Debt Consolidation Plan

    List all debts, noting interest rates, remaining terms and any early repayment fees. This helps determine if consolidation is financially beneficial and the total amount to borrow. Once you have the whole picture, create a budget and a timeline to pay off your balance. Also, include a line item in your budget for unexpected costs.

  2. 2

    Shop for Lenders

    Don’t be afraid to shop for lenders to find the best option for your credit score. Unlike credit cards, where each application equals one hard inquiry, multiple loan applications within a 45-day span are treated as a single inquiry.

  3. 3

    Review Loan Terms

    Carefully examine the terms of any loan offer, focusing on interest rates, repayment terms, origination fees and any penalty terms in case you missed your payments.

  4. 4

    Complete Your Application

    Prepare necessary documents, such as proof of identity, income and residence. Choose between applying online for convenience or in person for a tailored experience.

  5. 5

    Receive Your Funds

    The loan can be paid directly to creditors or deposited into your account. Use the funds to pay off high-interest debts first or save any excess for emergencies or additional payments.

Remember, a balance transfer is a short-term strategy for debt management. To ensure long-term financial stability, improve your credit score and cultivate good financial habits.

Alternatives to Balance Transfer for Bad Credit

If bad credit is holding you back and you can’t still qualify for a balance transfer card or a debt consolidation loan, consider these debt management alternatives:

    shakingHands icon

    Credit Counseling

    A certified credit counselor can offer tailored advice and strategies to manage your debts effectively. They can provide budgeting assistance, offer resources and even negotiate with creditors to lower your interest rates or waive late fees.

    preferences icon

    Debt Payoff Strategies

    Adopting a well-structured debt payoff strategy, such as the debt snowball or avalanche method, can provide a roadmap toward debt elimination. These methods focus on paying off debts in a specific order to maintain motivation and momentum.

    lowInterestAPR icon

    Negotiate a Lower APR

    Though it might sound impossible, try to negotiate for a lower APR with your credit card issuer. Although it's not always successful, it's worth a try as a lower APR can lead to significant interest savings.

Improving Your Bad Credit Score for Future Balance Transfers

Having bad credit isn’t permanent. With focused effort and good financial habits, you can improve your credit score over time. Some of these strategies include:

  • Paying Your Bills On Time: Consistent, on-time bill payment is one of the most influential factors in determining your credit score.
  • Reducing Your Debt: Work on lowering the amount of debt you owe. This may mean creating a realistic budget or cutting back on non-essential expenses.
  • Maintaining Low Credit Card Balances: Aim to use no more than 30% of your credit limit. Keeping your balances low shows that you can manage your credit responsibly.
  • Reviewing Your Credit Report Regularly: Regularly checking your credit report can help you catch inaccuracies or fraudulent activities that could be hurting your score.

Improving your credit score can expand your financial options in the future, including access to balance transfer cards with more favorable terms.

FAQ: Balance Transfers With Bad Credit

Paying off debt can be difficult, especially if you have bad credit. MoneyGeek responded to some frequently asked questions about balance transfers with bad credit to help you make an informed decision.

Is it possible to obtain a balance transfer card with bad credit?

What are the alternatives to balance transfer cards if I have bad credit?

How can I improve my credit score to be eligible for balance transfer cards in the future?

Is it a good idea to use my secured credit card for a balance transfer?

About Doug Milnes, CFA

Doug Milnes, CFA headshot

Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.

Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.

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