What To Do When Your Balance Transfer Is Denied

Transferring a stability from a high-interest bank card to a stability 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 stability switch card doesn’t imply the switch itself shall be accredited. There are a number of causes an issuer could refuse a stability switch software.

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

Beneath, we’ll discover why your stability switch could be denied and what you need to do subsequent.

Why would a stability switch be denied?

In terms of why a card issuer would deny a stability switch, there are two important eventualities it’s possible you’ll encounter:

• You apply for a brand new stability switch bank card and your software isn’t accredited
• You request a stability switch on an already-approved card however the switch is declined

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

Why the issuer rejects your card software

Issuers could reject your stability switch bank card software earlier than you’ll be able to 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 to glorious credit score rating (usually, a rating between 670 and 850) when reviewing stability switch card functions. A great credit score rating exhibits you’re a low-risk candidate who’s more likely to repay their stability. Whereas it’s attainable to get a stability switch card with low credit, the most effective choices are usually reserved for individuals with larger scores.

You could have too many latest stability transfers

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

Why you’re accredited for a card, however denied a stability switch

Then again, there are a variety of things that would trigger you to be accredited for a stability switch bank card, however have your precise stability switch denied.

Your credit score restrict is simply too low

Your credit score restrict is the utmost stability you’ll be able to have charged in your bank card at any time. The issuer will maintain your stability switch request till they’re able to verify the quantity to switch in relation to your credit score restrict. In case your credit score restrict is decrease than the sum of money you requested to switch from one other card, the issuer will doubtless reject the request (although you’re more likely to have extra success should you resubmit your stability switch request at a decrease quantity). Even should you’re solely in a position to switch a portion of your stability, this can assist to deliver down the quantity of curiosity you’ll owe.

You waited too lengthy to request a stability switch

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

You’re making an attempt to switch a stability from the identical issuer

For those who try to switch a stability from one bank card to a different card from the identical card issuer, your stability switch will doubtless be denied. Most issuers have restrictions on transferring balances between accounts.

What to do after your stability switch is denied

In case your stability switch was denied, there are steps you’ll be able to take to enhance your odds of being accredited sooner or later. It could take a while, however the steps you’re taking as we speak could make a major influence inside just a few months.

Proceed to pursue the stability switch

For those who nonetheless need to undergo with the stability switch, you may have choices for persevering with to pursue it.

Discover out why you had been denied

For those who’re denied for a stability switch, you need to obtain a discover within the mail stating the explanations for the rejection. However should you don’t need to watch for this discover, you could possibly attain out to the issuer to ask why it rejected your request, whether or not for the cardboard itself or the switch alone.

As part of this dialog, you could possibly present the issuer with additional data that can get you accredited to efficiently full your stability switch (for instance, should you made a mistake in your software that led to your denial). Even should you can’t repair the problem instantly, the issuer will provide help to to find out the steps it’s essential to take to enhance your possibilities for the following time you apply.

Resubmit with a decrease greenback quantity

For those who had been accredited for a stability switch bank card however your switch request was larger than your bank card restrict, attempt submitting a stability switch request for a decrease quantity. Some issuers solely help you switch a stability as much as a sure threshold, reminiscent of 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, decreasing your switch quantity can assist you to get accredited and nonetheless provide the likelihood to satisfy your debt payoff objectives.

Pursue another technique

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

Ask for a decrease rate of interest

In case your stability switch with a brand new issuer hasn’t labored out, you’ll be able to request that your present bank card issuer decrease the rate of interest in your current card. You gained’t be paying 0 % curiosity as with some introductory presents, however should you’re in a position to decrease your rate of interest by even just a few share factors, you could possibly pay down your debt sooner and extra effectively. Try our bank card curiosity calculator to see how completely different rates of interest may have an effect on your stability.

Contemplate a private mortgage

For those who can’t discover a stability switch bank card that meets your debt reimbursement wants, sure varieties of private loans may give you related aid. For instance, a debt consolidation mortgage means that you can wrap up your entire debt into one bundle, typically at a decrease rate of interest.

When to reapply for a stability switch should you’re denied

Ideally, you need to wait at the least just a few months earlier than making an attempt one other stability switch request. For those who had been denied a stability switch since you’ve made too many stability transfers lately, you need to wait an extended time period — at the least six months. Nonetheless, it’s possible you’ll need to examine along with your issuer(s) to see if they’ve restrictions associated to when you’ll be able to reapply for a stability switch.

Construct your credit score rating earlier than reapplying

For those who had been denied a stability switch due to a low credit score rating, you’ll have to make a critical effort to construct your credit score rating earlier than attempting a stability switch once more. To do that, attempt your finest to:

• Make funds in full and on time.
• Hold your credit score utilization as little as attainable, 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 period.
• Verify your credit score rating repeatedly to see how your rating is altering over time. You may get a free credit score report from every main credit score bureau annually on AnnualCreditReport.com, and plenty of bank card issuers additionally present free entry to both your FICO or VantageScore credit score rating via your on-line account.
• Verify your credit score report for errors. False data in a credit score report can influence your rating considerably. For those who uncover an error in your report — reminiscent of an account that’s not yours or a debt marked unpaid that you recognize you’ve paid in full — it’s vital to dispute the error.

Analysis playing cards earlier than making use of once more

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

• What credit score rating is advisable with the intention to be accredited for this card?
• What’s the stability switch charge?
• How lengthy do you must make a stability 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 stability to a bank card with a 0 % intro APR provide could make it simpler to pay down your bank card debt. But when your stability switch is denied, you’ll be able to doubtless nonetheless work along with your bank card issuer to discover a resolution that meets your wants.

As a way to efficiently switch a stability sooner or later, it’s possible you’ll want to enhance your credit score rating or handle the particular causes your switch was rejected. Nonetheless, should you want a right away resolution, the easiest way ahead could also be to request a decrease charge in your current card or apply for a private mortgage.