Can you secure a balance transfer card with poor credit?

A balance transfer can help consolidate debt by moving balances from multiple credit cards to one card with a special low-interest offer. While these deals are common for those with good credit, what about those with bad credit?

Sadly, balance transfer options for those with bad credit are much rarer, as a low FICO score reflects higher risk due to missed payments, high credit utilization, and other financial red flags.

As a result, finding balance transfer opportunities for bad credit is challenging, whether you’re seeking a new card with a 0% APR promotion or hoping to use the feature on your existing cards.

Consider these key points when searching for a balance transfer option with bad credit.

Can you do a balance transfer with poor credit?

A FICO score below 630 is classified as 'bad credit' and often limits balance transfer opportunities for consolidating debt. The goal of a balance transfer is to secure a lower or 0% interest rate, which helps save on interest and accelerate debt repayment.

While it's possible to get approved for a balance transfer card with bad credit, you might only receive a low credit limit, which can be limiting if you want to transfer large debts. Additionally, balance transfers usually come with a 3% to 5% fee, so transferring $5,000 could cost up to $250 in fees.

Applying for a new card can temporarily lower your FICO score due to a hard inquiry, and maxing out your credit limit could negatively impact your credit utilization ratio over time.

Are there any balance transfer cards available for bad credit?

In the credit card market, there are no cards specifically designed for balance transfers if you have bad credit.

Most issuers approve new cards for those with fair to excellent credit, and lenders like Chase or Discover may offer 0% APR promotions, but these are typically reserved for credit scores above 670.

Instead of seeking new balance transfer cards for bad credit, check your existing cards to see if they already have balance transfer offers available.

Cards like the Chase Slate Edge® sometimes feature low introductory APR and 0% APR offers. If you have an unused card, it may be worth logging into your account to check for any current offers before applying for a new one.

The information for the Chase Slate Edge has been gathered independently by Dinogo. The card details have not been reviewed or endorsed by the card issuer.

Other options besides balance transfers

Searching for balance transfer cards with bad credit can be time-consuming. If you hit a wall, there are other ways to manage your debt.

Debt payoff strategies

If balance transfers aren’t working out due to bad credit, create a debt payoff plan. Focus on clearing the card with the lowest balance first to lower your overall credit utilization and boost your credit score.

Debt consolidation

A debt consolidation loan is another option. These loans combine debts from multiple cards into one, usually at a lower interest rate than credit cards.

Even though those with bad credit may not get the best rates, this approach simplifies your debt by consolidating it into one payment, eliminating multiple due dates and late fees.

Negotiate a lower APR

Consider calling your credit card issuer to ask for a lower APR. While not guaranteed, some companies may reduce your rate, helping you save significantly on interest each month.

Expense management

If balance transfers and debt consolidation loans aren’t viable, a proactive option is managing your expenses better. By tracking spending, budgeting, and cutting unnecessary costs, you can free up more money to tackle your debt. Tools like budgeting apps can help identify areas to save.

Key takeaway

Balance transfer cards for bad credit are hard to find, and keep in mind that balance transfers often come with fees, which can increase your overall debt.

If you can't qualify for a balance transfer card due to bad credit, consider alternatives like checking for offers on your current cards, creating a debt payoff plan, or applying for a debt consolidation loan to accelerate repayment.