Pay off credit card debt more easily by moving your balance from a high-yield credit card to a balance transfer card with an initial interest rate of 0%. However, just because you're applying for a balance transfer card doesn't mean the transfer itself will go to the new card. There are several reasons why an issuer may decline a balance transfer request.
It can be disconcerting if your balance transfer request is declined after you receive a new balance transfer credit card, but you have the option to fight back: you can help improve your Credit score You can apply for a different balance transfer card or try other ways to pay off your debt.
Below we'll look at why your balance transfer might have been declined and what you should do next. Why decline a balance transfer.
As for why the card issuer would reject the balance transfer, there are two main situations:
You applied for a new balance transfer credit card, but your application was disapproved. You requested a balance transfer to an approved card, but the transfer was declined.
Here's a breakdown of why one of these conditions might be happening to you: Why card issuers reject your card application. Your credit rating is too low
Most credit card issuers want to see a good to excellent credit score (670 to 850) when reviewing a balance transfer card application. A good credit score indicates that you are a low-risk candidate who will likely pay off the full balance.
You have had too many recent balance transfers A series of balance transfers on your credit report may indicate that you are reallocating funds rather than actively paying them. This can be a red flag for issuers, so you should avoid requesting too many transfers in a short period of time.
Why You Are Approved for a Card but Declined for a Balance Transfer. Your credit limit is too low. Your credit limit is the maximum balance you can have on your credit card. The issuer will hold your transfer request until they can confirm the transfer amount associated with your line of credit.
If your credit limit is lower than the amount you are requesting to transfer from another card, the card issuer may deny the request. You may have better success if you resubmit your balance transfer request with a lower amount. Even if you can only transfer part of your balance, it can help reduce the amount of interest you owe.
You waited too long to request credit transfer Most balance transfer cards require you to complete the balance transfer within a certain time of account opening to be eligible for the Intro APR offer. Usually, this period is within three months of account opening. Be sure to read the fine print before applying for a card so you know how long it takes to complete a balance transfer request.
You are attempting to transfer a balance from the same issuer If you attempt to transfer a balance from one credit card to another from the same issuer, your balance transfer may be declined. Most issuers have restrictions on the transfer of funds between accounts.
What to do if your balance transfer is declined
If your balance transfer is declined, there are steps you can take to improve your chances of getting approved in the future. It may take time, but the steps you take today could make a big difference in months.
Stay tuned for balance transfers
Find out why you were rejected
First, ask the card issuer why they declined your request, whether it's the card itself or the transfer. You can provide additional information to the issuer to help you complete a successful funds transfer. Even if you can't fix the problem right away, the issuer will help you identify the steps you need to take to improve your chances of applying next time.
Resubmit with a lower dollar amount
If you are approved for a credit card balance transfer, but your transfer request is higher than your credit card limit, please try submitting a balance transfer request for a lower amount. Some issuers only allow you to transfer funds up to a certain threshold, eg B. 75% of your credit limit. Transfer requests that match your credit limit are more likely to be declined. In some cases, lowering your transfer amount can help you get approved and still give you a chance to meet your debt payment goals.
follow the alternative
demand lower interest rates
If your balance transfer doesn't work with your new card issuer, you can ask your current card issuer to lower the interest rate on your existing card. You don't pay 0% interest like some introductory offers, but if you can lower your rate by a few percentage points, you may be able to pay off your debt faster and more efficiently. Check out our credit card interest rate calculator to see how different interest rates can 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 can offer you a similar solution. For example, a debt consolidation loan allows you to combine all your debts into one package, usually at a lower interest rate. If a balance transfer isn't enough, a debt consolidation loan could be a solid option for you.
When to Reapply for a Balance Transfer If You've Been Declined
Ideally, you should wait at least a few months before trying to request another balance transfer. If you've been denied a balance transfer because you've made too many balance transfers recently, you should wait longer -- at least six months. However, you should check with your issuer to see if they have any restrictions on when you can reapply for a balance transfer.
Build your credit before applying again
If you are denied a balance transfer due to bad credit, you must make a serious effort to build your credit before attempting a balance transfer. To do this, make sure the following conditions are met:
Pay in full and on time.
Keep your credit utilization ratio as low as possible, ideally below 30% of your credit limit.
Avoid applying for too many loans or credit cards in a short period of time.
Check your credit score regularly to see how your credit score has changed over time. AnnualCreditReport.com provides you with a free annual credit report from any major credit bureau, and many credit card issuers also provide your FICO or VantageScore credit score for free through your online account.
Check your credit report for errors. Incorrect information on your credit report can seriously affect your score. If you find an error on a report -- such as an account you don't own or a debt marked as unpaid but you know you paid in full -- it's important to dispute the error.
Study the map before reapplying
Before applying for another balance transfer card, make sure you understand the details and benefits of each card you apply for so that you can make an informed decision about which balance transfer card is best for you. For example:
What credit rating do you need to be approved for this card?
How much is the transfer fee?
After opening an account, how soon do you have to request a balance transfer?
What is the transfer limit for the card?
What is the typical credit limit on the card?
final result
Transferring your balance to a credit card with a 0% introductory APR offer can make it easier to pay off your credit card debt. However, if your balance transfer is declined, you can work with your credit card issuer to find a solution.
In order to transfer money successfully within a few months, you may need to improve your credit score or address specific reasons why the transfer was declined. However, if you need an immediate solution, it's best to apply for a lower interest rate on your existing card, or get one to apply for a personal loan.