What to do when your balance transfer is denied

Transferring a balance from a high-interest credit card to a balance transfer card with an introductory 0 percent interest rate can make it easier to pay off your credit card debt. However, just because you apply for a balance transfer card doesn’t mean the transfer itself will be approved. There are several reasons an issuer may refuse a balance transfer application. It can be unsettling to have your balance transfer request denied after receiving a new balance transfer credit card, but you do have options for bouncing back: You can contact the credit card issuer directly about the denied request, work on improving your credit score so you can apply for another balance transfer card or try an alternative method of paying off your debt. Below, we’ll explore why your balance transfer might be denied and what you should do next.

Why was my balance transfer denied?

When it comes to why a card issuer would deny a balance transfer, there are two main scenarios you may encounter:

• You applied for a new balance transfer credit card and your application wasn’t approved.
• You requested a balance transfer on an already-approved card but the transfer was declined.

Here’s a breakdown of the reasons either of these scenarios might happen to you.

Why the issuer rejects your card application

Issuers may reject your balance transfer credit card application before you can even initiate the transfer process for several reasons.

Your credit score is too low

Most credit card issuers want to see a good to excellent credit score (typically, a score between 670 and 850) when reviewing balance transfer card applications. A good credit score shows you’re a low-risk candidate who is likely to pay off their balance. While it’s possible to get a balance transfer card with bad credit, the best options are typically reserved for people with higher scores.

You have too many recent balance transfers

A series of recent balance transfers on your credit report could indicate that you’re shuffling your debt around, rather than actively paying it off. This may be a red flag for issuers, so it’s best to avoid requesting too many transfers within a short period of time.

Why you’re approved for a card, but denied a balance transfer

On the other hand, there are a number of factors that could cause your balance transfer credit card to be approved, but your actual balance transfer denied.

Your credit limit is too low

Your credit limit is the maximum balance you can have charged on your credit card at any time. The issuer will hold your balance transfer request until they are able to confirm the amount to transfer in relation to your credit limit. If your credit limit is lower than the amount of money you requested to transfer from another card, the issuer will likely reject the request (though you’re likely to have more success if you resubmit your balance transfer request at a lower amount). Even if you’re only able to transfer a portion of your balance, this will help to bring down the total amount of interest you’ll owe.

You waited too long to request a balance transfer

Most balance transfer cards require you to complete a balance transfer within a specific time frame after opening the account in order to qualify for the intro APR offer. Usually, this time frame is within three months of account opening. Make sure to read the fine print before applying for a balance transfer card so you know how long you’ll have to make your request.

You’re attempting to transfer a balance from the same issuer

If you attempt to transfer a balance from one credit card to another card from the same card issuer, your balance transfer will likely be denied. Most issuers have restrictions on transferring balances between accounts.

What to do when your balance transfer is denied

If your balance transfer was denied, there are steps you can take to improve your odds of being approved in the future. It may take some time, but the steps you take today may make a significant impact within a few months.

Continue to pursue the balance transfer

If you still want to go through with the balance transfer, you have options.

Find out why you were denied

If you’re denied for a balance transfer, you should receive a notice in the mail stating the reasons for the rejection. But if you don’t want to wait for this notice, you may be able to reach out to the issuer to ask why your request was rejected, whether for the card itself or the transfer alone. As a part of this conversation, you may be able to provide the issuer with further information that will get you approved to successfully complete your balance transfer (for example, if you made a mistake on your application that led to your denial). Even if you can’t fix the issue immediately, the issuer will help you to determine the steps you need to take to improve your chances for the next time you apply.

Resubmit with a lower dollar amount

If you were approved for a balance transfer credit card but your transfer request was higher than your credit card limit, try submitting a balance transfer request for a lower amount. Some issuers only allow you to transfer a balance up to a certain threshold, such as 75 percent of your credit limit. A transfer request that’s right at your credit limit is more likely to be rejected. In some cases, lowering your transfer amount can help you to get approved and still give you the chance to meet your debt payoff goals.

Pursue an alternative method

Alternatively, if going ahead with the balance transfer no longer makes sense, other options exist to help you pay down your debt.

Ask for a lower interest rate

If your balance transfer with a new issuer hasn’t worked out, you can request that your current credit card issuer lower the interest rate on your existing card. You won’t be paying 0 percent interest as with some introductory offers, but if you’re able to lower your interest rate by even a few percentage points, you may be able to pay down your debt faster and more efficiently. Check out our credit card interest calculator to see how different interest rates could affect your balance.

Consider a personal loan

If you can’t find a balance transfer credit card that meets your debt repayment needs, certain types of personal loans could provide you with similar relief. For example, a debt consolidation loan allows you to wrap up all your debt into one package, often at a lower interest rate.

When to reapply for a balance transfer if you’re denied

Ideally, you should wait at least a few months before attempting another balance transfer request. If you were denied a balance transfer because you’ve made too many balance transfers recently, you should wait a longer period of time — at least six months. However, you may want to check with your issuer(s) to see if they have restrictions related to when you can reapply for a balance transfer.

Build your credit score before reapplying

If you were denied a balance transfer because of a low credit score, you’ll need to make a serious effort to build your credit score before trying a balance transfer again. To do this, try your best to:

• Make debt payments in full and on time.
• Keep your credit utilization as low as possible, ideally below 30 percent of your credit limit.
• Avoid applying for too many loans or credit cards within a short period of time.
• Check your credit score regularly to see how your score is changing over time. You can get a free credit report from the three major credit bureaus once a week on AnnualCreditReport.com, and many credit card issuers also provide free access to either your FICO or VantageScore credit score through your online account.
• Check your credit report for errors. False information in a credit report can impact your score significantly. If you discover an error on your report — such as an account that’s not yours or a debt marked unpaid that you know you’ve paid in full — it’s important to dispute the mistake.

Research cards before applying again

Before you apply for another balance transfer credit card, re-evaluate which balance transfer card may be the best fit for you. For example:

• What credit score is recommended in order to be approved for the card?
• What is the balance transfer fee?
• How long do you have to make a balance transfer request after opening the account?
• What is the transfer limit of the card?
• What is a typical credit limit on the card?

The bottom line

Transferring a balance to a credit card with a 0 percent intro APR offer can make it easier to pay down your credit card debt. But if your balance transfer is denied, you can likely still find a solution that meets your needs. In order to successfully transfer a balance in the future, you may need to improve your credit score or address the specific reasons your transfer was rejected. However, if you need an immediate solution, the best way forward may be to request a lower rate on your existing card or apply for a personal loan.