What To Do if Your Balance Transfer Request Is Denied: Your Essential Guide (2024)

FAQs

What To Do if Your Balance Transfer Request Is Denied: Your Essential Guide? ›

If your balance transfer request is denied, contact the credit card issuer directly to find out why you were denied. From there, you may need to improve your credit score before reapplying or try an alternative method of paying off your debt.

The bottom line

Qualifying for a balance transfer card for bad credit can be challenging. There's a good chance you'll only be eligible for secured credit cards, which require a cash deposit, so you may be better off simply putting that cash toward paying off your debt.

A failed balance transfer, can end up costing you money. For example, if your balance transfer is declined, then you may have to continue to pay the higher standard interest rates on your current card, for longer.

If your credit score is above 670, and you have debt you could manage to pay off over a 0 percent introductory interest period, a balance transfer may be a great tool to help you pay down high-interest debt.

Balance transfers won't hurt or help your credit alone; you should still commit to best practices when paying off credit card debt. Balance transfers require an approval process, which means your balance transfer request can be denied if you have a high credit utilization.

You may be approved for a card but denied a balance transfer if your credit limit is too low, you waited too long to request a balance transfer after opening your account or you're trying to transfer a balance from one card to another with the same issuer.

The easiest balance transfer credit card to get approved for is the Citi Double Cash Card because you only need fair credit to qualify. The Citi Double Cash Card also offers an introductory balance transfer APR of 0% for 18 months.

Yes, a bank can reject a wire transfer. This could happen for a several reasons, including inaccurate information, suspicious account activity, or insufficient funds.

Card issuers typically have rules surrounding the amount of debt you can transfer in relation to your credit limit. Many issuers are generous, giving cardholders the ability to transfer their full credit limit, but in some cases, your transfer limit may be capped at 75 percent of your overall credit limit.

“While it may provide some short-term relief and savings, the low promotional rate on your new credit card will eventually expire,” Maliga says. “If you haven't paid off the balance transfer by the time it does, you will be back to paying higher interest rates.”

Do they run your credit for a balance transfer? ›

Applying for a new credit card to transfer your balance will result in a hard inquiry on your credit report. A hard inquiry will shave a few points off your score initially, and it will stay on your credit report for up to two years.

Card issuers can determine who is eligible for a balance transfer, based on things like income and credit scores. Generally, the higher your credit score the better your odds are for getting approved. While it's possible to get approved for a balance transfer offer with bad credit, you might pay a much higher APR.

Yes, a 0% interest balance card may benefit you for a short time, but that 0% APR does not last forever. When the 0% introductory rate period is over, and it always ends, the credit card will revert to its regular APR. This rate might not be low at all. It may actually be higher than you are currently paying.

You probably stopped getting balance transfer offers because your credit score decreased, you've opted out, or issuers have reduced the number of offers available. The best balance transfer credit cards usually require at least good credit, so if your score drops, you may no longer be eligible for offers.

You need a credit score of at least 700 to qualify for the Discover it Balance Transfer credit card. That's good credit, but they'll also look at other details from your credit report that may influence your approval odds, such as debt-to-income ratio and recent hard inquiries.

How to track your balance transfer's progress. If you want to know whether your balance transfer is complete, check your credit card account. Some lenders provide an option for you to track your balance transfer's status online, which makes it easy to track its progress.

A balance transfer can improve your credit over time as you work toward paying off your debt. But it can hurt your credit if you open several new cards, transfer your balance multiple times or add to your debt.

It's quick, it's easy and it won't affect your ability to apply elsewhere. 3. Request the balance transfer – you can do this during your application or after you've been accepted. You'll have 60 days to transfer your old balance to your new account.

Transferring your debt has its drawbacks. Balance transfer credit cards often have a host of pitfalls that can potentially offset the benefits, including: Fees: Most credit cards have a 3% or 5% balance transfer fee. Temporary 0% APR: The 0% intro offer will eventually expire, and your regular APR may be 20% or higher.