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A short answer is yes. Your balance transfer request can be denied for several reasons. Here are some of those reasons:
- You try to transfer a balance from the same issuer. Issuers usually reject balance transfers between their own credit cards. So, make sure you know the issuer of your credit card before you look for a new balance transfer credit card or request a balance transfer to one of your active cards.
- Your credit limit is too low. Your balance transfer request can be rejected if you do not have enough available credit to cover the amount you have requested to transfer. When deciding how much to transfer, remember to account for balance transfer fees (3% - 5% of each transferred amount) that will be added to your balance.
- Your credit score is low. Since 0% intro APRs are usually offered on newly opened cards, you will need to have a good to excellent credit score to get approved for a balance transfer credit card.
- Your account is in poor standing. It is possible to request a balance transfer to an existing credit card, but your request may be denied if your account is not in good standing. Though, issuers may have different criteria for "good standing."
- You have too many recent balance transfers. A series of recent balance transfers on your report may indicate that you're shuffling your debt around, rather than actively paying it off, which may be a sign that you're struggling with debt. This may be a red flag for issuers, so it's best to avoid requesting too many transfers within a short period of time.
- You waited too long to request a balance transfer. Many balance transfer credit cards with 0% APR will require you to request a balance transfer within the first several months of opening the card. Usually, issuers allow up to four months to perform a balance transfer, and you may get denied the balance transfer simply because you waited too long.
What to do when your balance transfer is denied
If your balance transfer was denied, find out why it was denied. You should receive a notification or email from the issuer explaining why you were denied. If you do not want to wait, you can call the issuer and ask why your request was rejected.
Thus, if your balance transfer was denied because the transferred amount was higher than your credit card limit, try resubmitting a balance transfer request for a lower amount. Some issuers only allow you to transfer a balance up to a certain threshold, such as 75% of your credit limit. So, in some cases, lowering your transfer amount can help you to get approved.
If you have recent late payments on your account, try to pay on time at least the minimum due on all your accounts for several months in a row. Plus, try to minimize the use of your credit cards to avoid new debt. This will have a positive effect on your credit scores and may increase your chances of qualifying for a balance transfer.
Alternatively, if you can't get approved for a balance transfer, consider a personal loan or ask for an interest rate reduction.
Personal loans can be a good option if you are denied a balance transfer. Although personal loans can charge high APRs, they are typically lower than credit card interest rates.
Another good option is to simply call your credit card issuer and ask to reduce your interest rate. Depending on your situation and financial factors, interest rate reduction can be temporary or permanent.
