What To Do When Your Balance Transfer Is Denied

Transferring a steadiness from a high-interest bank card to a steadiness switch card with an introductory 0 % rate of interest could make it simpler to repay your bank card debt. Nonetheless, simply since you apply for a steadiness switch card doesn’t imply the switch itself shall be accepted. There are a number of causes an issuer could refuse a steadiness switch utility.

It may be unsettling to have your steadiness switch request denied after receiving a brand new steadiness switch bank card, however you do have choices for bouncing again: You’ll be able to contact the bank card issuer instantly concerning the denied request, work on enhancing your credit score rating so you possibly can apply for an additional steadiness switch card or attempt another technique of paying off your debt.

Under, we’ll discover why your steadiness switch may be denied and what you must do subsequent.

Why was my steadiness switch denied?

In relation to why a card issuer would deny a steadiness switch, there are two fundamental eventualities you could encounter:

• You utilized for a brand new steadiness switch bank card and your utility wasn’t accepted.
• You requested a steadiness switch on an already-approved card however the switch was declined.

Right here’s a breakdown of the explanations both of those eventualities would possibly occur to you.

Why the issuer rejects your card utility

Issuers could reject your steadiness switch bank card utility earlier than you possibly can even provoke the switch course of for a number of causes.

Your credit score rating is simply too low

Most bank card issuers need to see an excellent to glorious credit score rating (sometimes, a rating between 670 and 850) when reviewing steadiness switch card purposes. A great credit score rating reveals you’re a low-risk candidate who’s more likely to repay their steadiness. Whereas it’s doable to get a steadiness switch card with very bad credit, the most effective choices are sometimes reserved for individuals with greater scores.

You’ve too many latest steadiness transfers

A collection of latest steadiness transfers in your credit score report might point out that you simply’re shuffling your debt round, moderately than actively paying it off. This can be a purple flag for issuers, so it’s finest to keep away from requesting too many transfers inside a brief time frame.

Why you’re accepted for a card, however denied a steadiness switch

Then again, there are a variety of things that would trigger your steadiness switch bank card to be accepted, however your precise steadiness switch denied.

Your credit score restrict is simply too low

Your credit score restrict is the utmost steadiness you possibly can have charged in your bank card at any time. The issuer will maintain your steadiness switch request till they’re able to affirm the quantity to switch in relation to your credit score restrict. In case your credit score restrict is decrease than the amount of cash you requested to switch from one other card, the issuer will possible reject the request (although you’re more likely to have extra success if you happen to resubmit your steadiness switch request at a decrease quantity). Even if you happen to’re solely capable of switch a portion of your steadiness, this can assist to carry down the overall quantity of curiosity you’ll owe.

You waited too lengthy to request a steadiness switch

Most steadiness switch playing cards require you to finish a steadiness switch inside a particular time-frame after opening the account so as to qualify for the intro APR supply. Often, this time-frame is inside three months of account opening. Make sure that to learn the advantageous print earlier than making use of for a steadiness switch card so you understand how lengthy you’ll must make your request.

You’re trying to switch a steadiness from the identical issuer

When you try and switch a steadiness from one bank card to a different card from the identical card issuer, your steadiness switch will possible be denied. Most issuers have restrictions on transferring balances between accounts.

What to do when your steadiness switch is denied

In case your steadiness switch was denied, there are steps you possibly can take to enhance your odds of being accepted sooner or later. It could take a while, however the steps you are taking at the moment could make a major influence inside a number of months.

Proceed to pursue the steadiness switch

When you nonetheless need to undergo with the steadiness switch, you’ve got choices.

Discover out why you have been denied

When you’re denied for a steadiness switch, you must obtain a discover within the mail stating the explanations for the rejection. However if you happen to don’t need to watch for this discover, you might be able to attain out to the issuer to ask why your request was rejected, whether or not for the cardboard itself or the switch alone.

As part of this dialog, you might be able to present the issuer with additional info that can get you accepted to efficiently full your steadiness switch (for instance, if you happen to made a mistake in your utility that led to your denial). Even if you happen to can’t repair the problem instantly, the issuer will assist you to find out the steps you must take to enhance your possibilities for the subsequent time you apply.

Resubmit with a decrease greenback quantity

When you have been accepted for a steadiness switch bank card however your switch request was greater than your bank card restrict, attempt submitting a steadiness switch request for a decrease quantity. Some issuers solely assist you to switch a steadiness as much as a sure threshold, resembling 75 % of your credit score restrict. A switch request that’s proper at your credit score restrict is extra more likely to be rejected. In some circumstances, reducing your switch quantity may help you to get accepted and nonetheless provide the likelihood to satisfy your debt payoff targets.

Pursue another technique

Alternatively, if going forward with the steadiness switch now not is sensible, different choices exist that will help you pay down your debt.

Ask for a decrease rate of interest

In case your steadiness switch with a brand new issuer hasn’t labored out, you possibly can request that your present bank card issuer decrease the rate of interest in your current card. You received’t be paying 0 % curiosity as with some introductory provides, however if you happen to’re capable of decrease your rate of interest by even a number of share factors, you might be able to pay down your debt quicker and extra effectively. Try our bank card curiosity calculator to see how completely different rates of interest might have an effect on your steadiness.

Contemplate a private mortgage

When you can’t discover a steadiness switch bank card that meets your debt compensation wants, sure varieties of private loans might offer you comparable reduction. For instance, a debt consolidation mortgage lets you wrap up all of your debt into one bundle, usually at a decrease rate of interest.

When to reapply for a steadiness switch if you happen to’re denied

Ideally, you must wait a minimum of a number of months earlier than trying one other steadiness switch request. When you have been denied a steadiness switch since you’ve made too many steadiness transfers not too long ago, you must wait an extended time frame — a minimum of six months. Nonetheless, you could need to verify together with your issuer(s) to see if they’ve restrictions associated to when you possibly can reapply for a steadiness switch.

Construct your credit score rating earlier than reapplying

When you have been denied a steadiness switch due to a low credit score rating, you’ll have to make a severe effort to construct your credit score rating earlier than attempting a steadiness switch once more. To do that, attempt your finest to:

• Make debt funds in full and on time.
• Maintain your credit score utilization as little as doable, ideally under 30 % of your credit score restrict.
• Keep away from making use of for too many loans or bank cards inside a brief time frame.
• Test your credit score rating often to see how your rating is altering over time. You may get a free credit score report from the three main credit score bureaus as soon as every week on AnnualCreditReport.com, and lots of bank card issuers additionally present free entry to both your FICO or VantageScore credit score rating via your on-line account.
• Test your credit score report for errors. False info in a credit score report can influence your rating considerably. When you uncover an error in your report — resembling an account that’s not yours or a debt marked unpaid that you understand you’ve paid in full — it’s essential to dispute the error.

Analysis playing cards earlier than making use of once more

Earlier than you apply for an additional steadiness switch bank card, re-evaluate which steadiness switch card could also be the most effective match for you. For instance:

• What credit score rating is really useful so as to be accepted for the cardboard?
• What’s the steadiness switch price?
• How lengthy do it’s a must to make a steadiness switch request after opening the account?
• What’s the switch restrict of the cardboard?
• What’s a typical credit score restrict on the cardboard?

The underside line

Transferring a steadiness to a bank card with a 0 % intro APR supply could make it simpler to pay down your bank card debt. But when your steadiness switch is denied, you possibly can possible nonetheless discover a resolution that meets your wants.

With a purpose to efficiently switch a steadiness sooner or later, you could want to enhance your credit score rating or deal with the precise causes your switch was rejected. Nonetheless, if you happen to want a right away resolution, one of the best ways ahead could also be to request a decrease price in your current card or apply for a private mortgage.