Most banks stopped offering balance transfers in 2020 because of the economic crisis triggered by the coronavirus outbreak. Balance transfers began to return to the market by 2021, and the 10 largest credit card companies all have 0% intro APR balance transfer offers now.
You can check out WalletHub’s editors’ picks for the best balance transfer credit cards to learn more about the leading offers currently on the market. But remember that just because balance transfers are being offered does not guarantee you will be approved for one. There are plenty of instances where your request may be denied.
Why Balance Transfer Requests Get Denied
One reason why an issuer will reject a balance transfer request is that your approved credit limit is lower than the amount you wanted to transfer. Issuers may either reject the balance transfer entirely or approve your request for a lesser amount, up to the card’s allowed credit limit.
Other common reasons for balance transfer denial include having a low credit score or limited disposable income, missing the balance transfer offer’s deadlines, and attempting to transfer a balance to another card from the same issuer. Some balance transfer offers with an intro APR are only good for a certain number of days after you open the account, so be sure to familiarize yourself with the offer’s terms before you transfer a balance.
Finally, remember that while banks offer balance transfers as a service to their customers, they can just as easily suspend or discontinue offers based on the state of the economy or their own financial interests.
This answer was first published on 05/22/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
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.
Why can't I get a balance transfer? ›
Your request for a balance transfer might be declined if the transfer amount is above your credit limit, your account is in poor standing or you're trying to transfer a balance to a card from the same credit card issuer.
What is the problem with balance transfer? ›
“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 balance transfers hurt your credit? ›
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.
Why wont Chase let me do a balance transfer? ›
Like most issuers, Chase doesn't allow cardmembers to transfer a balance from one Chase credit card account to another Chase credit card account. If you have debt on a Chase card that you want to transfer, you should choose a balance transfer card from another issuer.
Did Discover stop offering balance transfers? ›
Does Discover allow balance transfers? Yes, potential new cardmembers can apply for a Discover it® Cash Back Card and take advantage of a balance transfer offer.
Is it bad to keep doing balance transfers? ›
In some cases, a balance transfer can positively impact your credit scores and help you pay less interest on your debts in the long run. However, repeatedly opening new credit cards and transferring balances to them can damage your credit scores in the long run.
Why won t Capital One let me transfer balance? ›
Transfer terms: Most credit card issuers only allow cardholders to transfer external credit card balances. This means you typically can't transfer balances between two cards from the same issuer.
What is the catch to a balance transfer? ›
The problem is that transferring a balance means carrying a monthly balance. Carrying a monthly balance by not paying off the minimum amount due each month—even one with a 0% interest rate—can mean losing the card's introductory APR, its grace period and paying surprise interest on new purchases.
When should I not do a balance transfer? ›
You Have Bad Credit
And if you do qualify, the balance transfer offer may only offer an intro 0% APR for a few months or give you a low APR instead. Instead of applying for a balance transfer credit card with bad credit, take some actions to improve your credit score first.
Cons of Balance Transfers
The balance transfer credit cards charge a fee typically between 3% to 5% of the transferred amount. This upfront cost can cancel out some of the savings from the lower interest rate.
How much is too much for a balance transfer? ›
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.
Is it better to close a credit card or transfer balance? ›
Closing a credit card after transferring the balance can negatively impact your credit scores by increasing your credit utilization rate. It's best to leave the account open, even if you don't use it very often. At Experian, one of our priorities is consumer credit and finance education.
Is it worth getting a balance transfer? ›
A balance transfer can be a great way to save money on interest and get out of debt. But it can also be a slippery slope into more debt if you're not careful.
What happens to an old credit card after a balance transfer? ›
Your old credit card will remain open after the balance transfer is complete, and you can decide whether you want to keep using it, stop spending on it, or close your account.
What triggers a balance transfer offer? ›
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.
How do you qualify for a balance transfer offer? ›
Qualifying for a top-rated balance transfer credit card is generally easier if you have a good credit score, which means a FICO score of at least 670. You might still be able to open a balance transfer credit card with a credit score below 670, but it may come with a shorter intro APR period.
Did Amex stop balance transfers? ›
Can you transfer a balance from one Amex card to another? No, American Express doesn't allow card members to transfer a balance from one Amex credit card account to another.
Why hasn't my balance transfer gone through? ›
But balance transfers take time that depends on the issuer, and you'll want to keep a close eye on your balance transfer credit card account to track the process. If your balance transfer is not completed within 21 days, contact your credit card issuer's customer service department to learn what might be holding it up.
