What is the limit for a balance transfer card?

According to Bankrate’s 2024 Chasing Rewards in Debt Survey, more than 2 in 5 (44 percent) of American credit cardholders carry a credit card balance from one month to the next. And with average credit card interest rates at more than 20 percent, it’s easy to see why transferring the most credit card debt possible to a low- or zero-interest card is critical.

But, balance transfers can get complicated — especially if you need a card with a high enough limit to transfer all of your high-interest debt. There are also some issuer-specific cardholder rules to know about when it comes to balance transfers, including the fact most issuers don’t let you transfer a balance between their individual card products.

That said, credit cards with a zero percent introductory APR can still help you get out of debt and save money along the way. How much you can transfer depends on the credit limit on your new card, which your card issuer determines using factors like your credit score and income. You won’t know what your balance transfer credit card limit is for certain until you get approved, but you can still implement some tools and tips to make the most of it.

How much debt can you transfer?

The exact amount you’re able to transfer depends on your card, your issuer and the credit limit you receive. Card issuers typically have rules surrounding the amount of debt you can transfer in relation to your credit limit, but they may or may not publish those rules where you can find them.

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. Some card issuers also have internal rules for balance transfers. Chase, for example, only lets cardholders transfer up to $15,000 to their cards within a 30-day period.

It’s important to note that a balance transfer fee is typically considered a part of your transferable balance, making your “true” limit slightly lower than you may have expected unless you have one of the best cards with no balance transfer fee.

If you have a card with a $5,000 balance transfer limit and a 3 percent balance transfer fee, the most you’ll be able to transfer is about $4,850. That transfer amount plus the 3 percent fee brings your total to $4,495.50 and keeps you under the limit.

Be sure to read through your credit card agreement or talk to your issuer to determine if and how the balance transfer fee affects your limit.

How many credit card accounts can you consolidate?

You can consolidate as many accounts and balances as your credit limits and card issuers allow. However, juggling balances between multiple credit cards can make the process more difficult — especially if you have considerable amounts of debt.

If you have widespread debt that exceeds your credit limit, for example, don’t try to open up multiple balance transfer cards to circumvent the issue. Doing so leads to multiple hard inquiries on your credit report and will likely hurt your credit score. Instead, you should consolidate as much debt as you can while working diligently to pay down the rest.

Also, be aware of the types of debt you can transfer. In addition to credit card balances, most major issuers allow you to transfer various loan balances, including personal loans, auto loans and even home equity loans. However, select issuers — such as American Express and Chase — reserve balance transfers for credit card debt only.

How to find out your card’s balance transfer limit

You might find your potential credit limit for a new balance transfer credit card by pre-qualifying before submitting a full application. That way you know whether it’s worth your time to apply.

Certain credit issuers have pre-qualification which tells you whether you’re likely to be approved for their card without a hard credit check and sometimes provides your potential credit limit.

You’ll still have to submit an application once you land on a final decision, but pre-qualifying could save you some hard inquiries in the process. Instead of pre-qualifying through multiple credit card sites, you could use Bankrate’s CardMatch tool to get the best card offers delivered directly to you. This can give you a good idea of where you stand without having to officially apply.

You can also check the card’s terms and conditions to find information on the credit limit minimum or range. If you’re looking for the balance transfer limit on a card you already own, you’ll need to know the following information:

• Your card’s overall credit limit
• The balance transfer fee

Your card’s overall credit limit is the maximum amount you can put on the card. That includes everyday purchases, balance transfers or a combination of both. If you scour through the fine print and find no additional balance transfer restrictions, then you can safely assume you can transfer a balance up to your full credit limit — minus the balance transfer fee, of course.

You’ll find this information online in your issuer’s account portal and in your card agreement. If you can’t find it there, you can always contact your card issuer and have an associate provide you with more information.

Use your income to get a high credit limit

One of the biggest factors used to determine your credit limit is your income. With this in mind, it’s important to declare the entire income amount you are legally able to state on your credit card application.

Fortunately, the CARD Act of 2009 makes it legal to use your household income when applying for a credit card instead of just your own. This means you can list your own income and that of other household members, like your spouse, in order to qualify for a higher credit limit.

You can also consider applying for a high-limit credit card for your balance transfer, but remember that many of the best high-limit credit cards don’t have intro APR offers. Ideally, you’ll find a credit card with a high limit that also offers 0 percent APR on balance transfers for a limited time, plus other perks you can benefit from.

What to do when your credit limit is too low

Improving your credit score can help incentivize issuers to increase your credit limit. A better credit history gives issuers more confidence that you’re going to pay back what you borrow and allows them to loosen the reins on your credit limit. The following tips can help guide you through the process of increasing your credit limit:

• Call your issuer

  It may be as simple as asking. Many credit card issuers allow their cardholders to ask for a credit limit increase online. You can also call the customer service line to ask a representative if you’re eligible for a credit limit increase. You will most likely have to update your income information, so if your income has dipped recently, it’s likely not a good time to ask. You’ll also want to ask whether your issuer will have to perform a hard credit inquiry before processing your request. Doing so could hurt your credit score.

• Keep an eye out for automatic increases

  Some credit card issuers give automatic credit limit increases after cardholders have established a history of responsible behavior. Paying your bill on time each month and managing your credit responsibly might lead your card issuer to raise your credit limit unprompted. Reporting an increased income or reaching certain cardholder anniversaries could also trigger this.

• Apply for a new card

  If your credit is in good shape and you have a strong payment history, you could be approved for a new credit card with a higher limit. This is especially important when considering a balance transfer credit card because it gives you more space to transfer debt. However, applying for another new card soon after getting approved for a card could signal added risk for card issuers and requires a new hard inquiry on your credit report.

Alternatives to a balance transfer

If you’re considering a balance transfer because you have high-interest debt to pay down, there are some alternatives that help accomplish the same goal. The following moves can help you reduce your debt burden without a balance transfer credit card:

• Debt avalanche: The debt avalanche has debtors pay as much as they can toward their highest interest debt each month while paying the minimum amount on the rest. Over time, they pay off their highest interest debts and “avalanche” those payments to the debt with the next highest interest rates until all debts are gone.
• Debt snowball: The debt snowball has debtors pay as much as they can toward their smallest debt each month while paying the minimum payment on the rest. Over time, they pay off their smallest debts and “snowball” those payments to the next-smallest debt until all debts are gone.
• Debt management plan: Debt management plans are offered through third-party companies and help people out of debt over time. These plans have participants make a single monthly payment to an account in their name, and the funds are used to pay debts on their behalf. Agencies also help people out of debt by negotiating lower interest rates and waived fees with creditors.
• Home equity loan: If you have considerable home equity, you may be able to borrow against it with a home equity loan and use the funds to pay off existing debt. These loans let you access cash (typically up to 90 percent of your home’s value), then repay the funds with a fixed interest rate and fixed monthly payment.
• Personal loan: Personal loans let you borrow a lump sum of money you can use for debt consolidation. Like home equity loans, these loans also come with fixed interest rates and fixed monthly payments. However, personal loans typically aren’t secured with collateral.

The bottom line

Your balance transfer limit can vary depending on factors like your income, your credit score and how much debt you currently have. Your best bet is to make sure your credit score is in good shape before you apply and that you’re including all of your applicable household income in your application.

The best balance transfer credit cards offer introductory 0 percent APR periods of 15 months or longer. With thorough research and planning, you can up your chances of being approved for the card transfer limit you require.