Balance Transfer Credit Card Limits: A Complete Guide

A balance transfer limit is the maximum amount of debt you can transfer from one credit card to another. By getting a limit that can cover your debts and moving them from a high-interest card to a card with lower interest, you can potentially save on interest payments.

The credit card issuer may set a balance transfer limit based on certain factors. This limit may be a fixed amount, or it may be a percentage of your total credit limit on the new card.

For example, American Express caps its transfers to $7,500, no matter how high your credit limit is. Or if you have a $7,000 credit limit with your Discover it Balance Transfer card, the amount you can transfer is limited to 97% because you have to account for the 3% balance transfer fee.

The amount you can transfer hinges on the credit limit of your new card and the policy of that card issuer. While there is no universal rule, here are some of the common policies across cards:

The maximum balance you can transfer depends on your chosen card's policy, usually being up to your available credit minus any balance transfer fees. We've outlined the policies of major card issuers to give you an idea of your transfer limit:

Having a good relationship with the bank may also help you get a high credit limit. In terms of issuers, Amex will more likely give you a high credit limit if you have a good credit history with them. But note that there is still no guarantee that you’ll get the credit limit that you want.

If the credit limit on a balance transfer card isn't high enough to cover your entire debt, you can transfer a portion of the amount and pay off the remainder on your old card. Another option is to explore alternatives such as a debt consolidation loan or credit counseling.

Applying for an additional card is also an option but this can lead to multiple hard inquiries that will negatively affect your credit score.

There are a lot of advantages to getting a balance transfer card. But suppose the limit is too low or the period is too short. In that case, you have other tools and strategies to consider for paying off significant debt:

Once you know your credit limit and the maximum amount you can transfer, decide which balances to transfer, focusing on those with the highest credit card interest. This is particularly important if your limit doesn't cover all your debts.

Remember not to transfer disputed charges to preserve your dispute rights. For any remaining balance, consider a debt consolidation or a personal loan with a low interest rate.

Alternatively, debt avalanche is also another way to manage your debt. Continue paying off the balance on your existing card, targeting the highest interest rate first. Then once that’s closed off, pay the debt with the next highest interest rate. Do this until you paid off all your balances.

After transferring your balance, keep your old credit card open, as closing it could affect your credit score.

We've covered a lot on balance transfer limits, but you may still have some questions. We’ve compiled the most common questions to give you a clear, comprehensive understanding of the subject.