Can you get a balance transfer card with bad credit?

A balance transfer credit card can be a great tool for consolidating debt. A lengthy 0 percent introductory annual percentage rate (APR) offer can help you save money and pay down debt more quickly. But before looking at transferring a balance, you should check your credit score. Unfortunately, balance transfer credit cards for bad credit aren’t easy to come by.

Even if you can qualify for a balance transfer card with poor credit, it’s important to set realistic expectations before applying for one. Consumers with poor credit — a credit score of 579 or below — can’t often qualify for the best 0 percent APR cards. With this score, you probably won’t receive an interest-free window, but you might gain access to a lower APR than you’re currently paying.

Ultimately, a balance transfer can still help you save money on interest if you don’t have great credit, but you should also consider whether another form of debt consolidation might be a better option for you.

Should you do a balance transfer with bad credit?

You might find a balance transfer credit card to approve you even if your credit score is poor, but that doesn’t necessarily mean it’s your best option.

People with poor credit find most of their credit card options are secured credit cards, but these cards aren’t ideal for balance transfers — and many don’t even allow balance transfers. Secured credit cards require a cash deposit, or security deposit, as collateral, and your credit limit is usually equal or close to your deposit amount. That means the credit limits — and, therefore, the amount you could even transfer to the card — are typically quite low.

Plus, if you have the cash to use as collateral for a secured credit card, you’d likely be better off putting it toward the debt you’re trying to consolidate instead. This means that having a low credit score can sometimes make a balance transfer a bad idea.

While there are some unsecured credit cards for bad credit that offer balance transfer options, you’ll still want to carefully read the fine print to understand whether it’s the right move for you.

Pros and cons of a balance transfer card when you have bad credit

If you’re trying to pay down debt while building credit, a balance transfer is a solid option to consider. However, if you currently have bad credit, it can be difficult to qualify for a balance transfer card with terms that actually benefit you. Should you transfer a balance, or should you focus on repairing your credit? Consider some pros and cons of a balance transfer.

Pros

• If you have a solid payoff plan and can get a card with a lower interest rate, you might be able to better pay down your debt. But you’ll need to be disciplined in your payoff plan.

• If your balance transfer card offers rewards, you can take advantage of any rewards even after your transferred balance is paid off.

• With the right card, you can build your credit and graduate to a card with better rewards and perks.

Cons

• Most credit cards for bad credit don’t offer intro APR offers on new purchases, so you’ll want to avoid putting new purchases on your card if you open one for the balance transfer offer.

• You’ll likely have to pay balance transfer fees that will add to your debt amount right away (though you may still save money in the long run by paying lower interest).

• Transferring balances may not help you accomplish anything other than moving debt from one place to another. If you keep spending as usual on the new card, transferring balances could leave you with more debt.

Alternatives to a balance transfer if you have bad credit

If you can’t find a balance transfer card for bad credit, or if your balance transfer application is denied, there are some alternatives worth considering. These options might not be perfect, but they can help you to pay off debt more quickly.

Debt consolidation loans

A personal loan can help you consolidate high-interest debt with a fixed interest rate, a fixed monthly payment and a fixed repayment period. Having a set payment each month can make your debt repayment plan easier, and even though you will still pay interest, personal loans for bad credit often come with much lower rates than credit cards for bad credit.

Get a co-signer

If you can’t qualify for a personal loan on your own, you can also consider applying with a co-signer. When you have a co-signer, a family member or friend lends you their good credit to help you qualify. There is risk involved with this option since co-signers are jointly responsible for repaying the amount owed. If you default on the loan, they will be on the hook for making payments or risk damaging their credit score.

Improve your credit score

Don’t lose sight of working to improve your credit score even as you focus on paying down your debt. Improving your credit score should help you qualify for better credit cards with lower rates in the future, even setting you up to qualify for one of the best 0 percent intro APR credit cards.

Keep chipping away at your debt balance in the meantime, but continue to pay bills on time, live within your means and otherwise do your best to make responsible financial decisions.

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.

If it seems like that would barely make a dent, consider other ways to consolidate. Focus on managing your debt with on-time monthly payments and work on improving your credit so you can qualify for an unsecured balance transfer card with superior rates and terms.