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Getting a traditional 0% intro APR balance transfer card with bad credit is often difficult. Credit card issuers typically require a good or excellent credit score to qualify, which is a FICO® Score☉ Θ of 670 or higher.
There are other ways to strategically pay down credit card debt, however. You can look into secured credit cards that allow balance transfers, build positive credit habits to improve your score or use payoff methods that don't require a balance transfer.
Balance transfers can be a helpful way to get debt under control. If a traditional balance transfer credit card isn't an option for you, read on for alternatives to consider.
Can You Get a Balance Transfer Card With Bad Credit?
You likely won't qualify for a balance transfer credit card with fair or poor credit (a FICO® Score below 670). Issuers are looking for applicants with good credit, since balance transfers are a way for credit card issuers to take on new customers (typically, you can't transfer a balance between credit cards issued by the same financial institution). It's beneficial for credit card companies to have customers who are statistically more likely to pay off their debt as agreed.
While eligibility for a balance transfer card can feel restrictive, there's an upside: Once approved, you may receive an introductory 0% annual percentage rate (APR). This gives you the opportunity to pay off credit card debt interest-free.
Be aware: You will generally pay a one-time balance transfer fee that's usually 3% to 5% of the transferred amount.
Should You Do a Balance Transfer With Bad Credit?
It's unlikely you'll qualify for a balance transfer card with a poor credit score. You'll have slightly more options with at least fair credit, or a FICO® Score of 580 to 669, but a balance transfer card may not be the best choice for you even if you are able to qualify. That's because you may end up paying fees and interest that an alternative option would help you avoid.
Here's why it's important to consider a balance transfer carefully with bad credit:
- You could pay a higher APR. You may not qualify for an intro 0% APR promotion with fair or poor credit—or your promotional window could be shorter than the typical maximum of 21 months available to those with good credit. Even if you are offered an introductory 0% APR, that will increase to an ongoing APR on purchases when the introductory period is over. With bad credit, you may receive an ongoing APR at the higher end of the range after you've paid off your transferred balance, leading to even more debt if you don't pay off your purchases each month.
- Transferring your balance could free you up to take on more debt. In addition to its intended purpose, a balance transfer card allows you to make purchases that could eliminate the benefits of the balance transfer. Make sure you feel confident in your debt payoff plan and have a sound strategy to get rid of your existing credit card debt for good before going this route. Ideally, plan not to make any new purchases with your balance transfer card (or the cards you used it to pay off). Once your balance is paid off, use the card only sparingly to keep the account open and avoid accruing debt.
- A new credit card will mean a new hard inquiry. Applying for a new credit card can have a negative impact on your credit scores, at least in the short term. A hard inquiry will be added to your credit report, which can take a few points off your credit scores, and the effect can linger for up to 12 months. That may be worth avoiding if you're hoping to repair your credit or you want to strengthen your score to pursue a big goal, like buying a house.
- You may not qualify for a large enough credit limit to transfer your entire balance. Card issuers may consider your credit score when assigning you a credit limit or a balance transfer limit. If you have bad credit, you may receive a credit limit or balance transfer limit that doesn't cover the total amount of debt you want to pay off.
Learn more: What to Do if You're Denied a Balance Transfer Credit Card
Alternatives to Balance Transfer Cards for Bad Credit
You have several additional credit card options if a balance transfer card isn't for you:
- Apply for a secured credit card with a balance transfer offer. Secured credit cards are geared to cardholders with no credit or bad credit. You'll pay a deposit upfront that typically becomes your credit limit, and you'll use the card like you would a traditional credit card. Making payments on a secured card account can help improve your credit score. Some secured cards have balance transfer offers that may offer a lower APR than you're paying now. Secured cards offered through credit unions, for example, may even offer a promotional 0% APR on balance transfers or no balance transfer fee, though you'll need to join the credit union to apply.
- Improve your credit and apply for an unsecured balance transfer card. If you stay consistent with your payments, you'll generally be able to transition a secured credit card to an unsecured version. Once you have a higher credit score, you may also qualify for 0% intro APR offers available from other card issuers to pay off any outstanding credit card balance.
- Transfer a balance to a different existing card. This option lets you avoid applying for new credit. Contact your current card issuers to see if they have any balance transfer offers available. Make sure to ask how much in fees you'll pay, when the promotional period ends and what APR you'll be charged after that point.
How to Pay Down Debt Without a Balance Transfer
You may choose not to transfer a balance to a new credit card. Perhaps you'd like to avoid adding a new card to your wallet, or your credit score disqualifies you. Instead, try these alternatives:
- Get a debt consolidation loan. Using this method, you'll also transfer a credit card balance, but to a personal loan instead of another credit card. If you qualify for a debt consolidation loan at an interest rate that's lower than what you already pay, you could see savings similar to what you'd get with a balance transfer credit card. Make sure you understand how much you'll pay in origination fees, and how much your monthly payment will be, before moving forward.
- Ask for a lower interest rate. When you ask your current credit card issuer for a lower interest rate, it is particularly likely to agree if you've made all your payments on time and you've been a customer for a while. Try again in a few months if you're not successful right away.
- Use a debt payoff strategy. Pay off multiple debts without consolidating or transferring them by concentrating on one debt at a time using the debt snowball or debt avalanche methods. Tackle the lowest balance first with the snowball method, or the one with the highest interest rate first with the avalanche method.
- Increase your income. Add to your income by asking for a raise, selling items or starting a side business, which can jump-start your debt payoff plans.
- Reduce your monthly expenses. You can also cut the amount you pay on recurring expenses like housing, transportation, utilities, memberships and subscriptions and meals out, then send the extra cash to debt payoff.
- Work with a nonprofit credit counseling agency. These organizations can offer a free initial consultation on your debt situation and suggest payoff strategies. Search for a certified credit counselor through the National Foundation for Credit Counseling when you're ready to get started.
Frequently Asked Questions
What Credit Score Do You Need for a Balance Transfer?
To qualify for a traditional, unsecured balance transfer credit card, you'll generally need a FICO® Score of 670 or higher, which equates to good or excellent credit.
Does a Balance Transfer Hurt Your Credit Score?
A balance transfer can cause a brief drop in your credit score since you'll apply for a new credit card, which results in a hard inquiry on your credit report. The average age of your accounts will also decrease, which can have a negative score impact too. Paying down debt and making on-time payments on your new account, however, will positively affect your score over the long term.
How Do You Get a Balance Transfer Credit Card for Bad Credit?
Your balance transfer card options will be limited with bad credit. But your best bet is likely to seek out a secured credit card, typically available from credit unions, that comes with a balance transfer offer of a lower APR or no balance transfer fee. You can then upgrade to an unsecured credit card when your credit score improves, and do a traditional balance transfer if necessary later on.
The Bottom Line
With bad credit, it will be a challenge to get a traditional balance transfer credit card. But you have other options. A secured credit card with a balance transfer deal, for example, can get you a lower rate when paying off an existing balance—and help you improve your credit score at the same time.
You may decide to pay off debt without a balance transfer at all. But however you do it, eliminating debt will help you not only achieve debt freedom, but will likely bring your credit score to a level that gives you more flexibility too.