What to do if your balance transfer is denied

A balance transfer can be a great way to pay off credit card debt quickly and save money on interest. Generally, you will transfer your high-interest credit card debt to a card with a 0% annual percentage rate introductory offer, giving you time to pay off the debt without incurring interest charges.

But just because you apply doesn’t mean you will be approved for a balance transfer. It certainly helps to have good to excellent credit. Let’s investigate what you should do if your balance transfer is denied.

• Low credit score. Your balance transfer request will likely be denied if you have a low credit score. Getting approved with a low score is possible, but those with higher credit scores are much more likely to get approved.
• Too many recent inquiries. If you have applied for multiple credit products within a short period of time, your balance transfer request may not be approved. Excessive credit inquiries can also contribute to a lower credit score.
• Too many recent balance transfers. If you have recently applied or been approved for balance transfers, it can indicate that you are not financially stable and are moving debt around too frequently.
• Waiting too long to apply for the balance transfer. You can be approved for a new credit card with 0% APR and not get approved for the balance transfer simply because you waited too long. Issuers usually want you to apply for a balance transfer within the first three months of opening the card.
• Trying to transfer from the same card issuer. Issuers tend to reject balance transfers between their own card families. For example, Chase states that “balance transfers may not be used to pay other credit cards or loans issued by JPMorgan Chase Bank, N.A. or any of our affiliates.”
• Trying to transfer too much money from another card. Sometimes, you can be denied a balance transfer because the requested amount is too high. Issuers tend to limit the amount of your available credit that can be used for a balance transfer to around 75% of your credit limit.

If you are denied a balance transfer, regardless of the reason, you should receive a letter from the issuer explaining why you were denied. If you believe you should have been approved, you can call the issuer’s reconsideration line.

Sometimes, just calling the issuer and asking to transfer a smaller amount can get you approved, as issuers usually only let you transfer a certain percentage of your credit limit.

Related: How to do a balance transfer

• Ask for an interest rate reduction. Simply calling your credit card issuer and asking to have your interest rate reduced can help you save money. Depending on your situation and other financial factors, interest rate reductions can be permanent or temporary.
• Consider a personal loan. A personal loan can be another useful option if you are denied a balance transfer. Although personal loans can charge high APRs, they are typically lower than credit card interest rates.

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You can always try to reapply for a balance transfer later. Before doing so, ensure your credit score is in the recommended range for the card you are applying for. Improving your credit score helps issuers know you are a less risky borrower, making you more likely to get approved for your balance transfer.

You can improve your chances by making timely payments, keeping your credit utilization low and not applying for too many credit products within a short time frame. Furthermore, you should check your credit score frequently to ensure no discrepancies are making your score lower than it should be.

Related: How to use a 0% APR credit card as an interest-free loan

Balance transfers to a 0% APR credit card are a great way to save money on interest and pay off high-interest credit card debt. However, if you are denied, you still have options to help you save on interest fees.

You can try to improve your credit score and reapply in a couple of months, but if you need an immediate solution, consider calling your issuer and asking for an interest rate reduction or getting a personal loan.