If you have bad credit, finding the best credit card for bad credit balance transfer can seem like a daunting task. But don’t worry – we’re here to help!
In this article, we’ll discuss what a balance transfer is, and then we’ll show you our top picks for the best credit card for bad credit balance transfers.
Keep reading to learn more!
Credit card balance transfers can be a helpful tool if you’re trying to pay down debt. By transferring your balance to a card with a lower APR, you can save money on interest and pay off your debt more quickly.
However, it’s important to understand the potential downsides of a balance transfer before you apply.
For one, most balance transfer cards require good or excellent credit for approval. And even if you do qualify, you probably won’t receive an interest-free introductory period on your transferred balance.
But if you’re careful and disciplined about paying off your debt, a balance transfer can be a helpful way to get out of debt sooner.
Let’s look at balance transfer alternatives for people with bad credit, as well as some credit card suggestions.
Best credit card for bad credit balance transfer
Here are our top picks for the best balance transfer credit card for bad credit:
#1. Discover it Secured Credit Card
The Discover it Secured Credit Card is a great option for people with bad credit who are looking for a balance transfer credit card. This card offers a 10.99% intro APR for 6 months from the date of your first transfer, which is one of the longest intro periods available. And there’s no annual fee, which is another bonus.
However, after the intro period ends, your APR will be 23.24%. So if you’re not able to pay off your balance within the intro period, you’ll start accruing interest at a pretty high rate.
One downside of this card is that it requires a security deposit, which can be difficult to come up with if you’re already struggling with debt. But if you can swing it, the Discover it Secured Credit Card is a great option for a balance transfer credit card.
Here are the features that make this card a good choice for a balance transfer.
- 10.99% intro APR for 6 months from the date of first transfer
- No annual fee
- 3% balance transfer fee (intro fee)
- 23.24% variable APR after the intro period
The above offer is available for balance transfers that post to your account by August 10, 2022.
Read More: Best Unsecured Credit Cards for poor credit
#2. Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card is one of the best balance transfer credit cards for bad credit. It offers a non-introductory APR of 24.9% on transfers, which is lower than many other cards.
There is also no balance transfer fee, making it a great option for those looking to reduce their debt.
Additionally, there is no annual fee, making it a very affordable option for those with bad credit.
Finally, the card requires a security deposit of just $49, $99, or $200, which is much lower than many other cards. This makes Capital One Platinum Secured Credit Card an excellent choice for those with bad credit who are looking to reduce their debt.
Here are the features that make this card a good choice for a balance transfer.
- No annual fee
- No balance transfer fee
- 3% foreign transaction fee
- 24.9% variable for a balance transfer
Should you do a balance transfer if you have bad credit?
Opting for a money transfer credit card is often thought to be a good idea for those with bad credit. However, this may not always be the case.
A money transfer credit card can help to improve your credit score if used correctly, but there are a few things to keep in mind before you make the transfer.
First of all, it is important to remember that money transfer credit cards typically have high-interest rates. This means that if you are not able to pay off your balance within the introductory period, you will end up paying more in interest than you would have without the transfer.
Additionally, money transfer credit cards usually come with balance transfer fees. These fees can range from 3-5% of the total amount being transferred, so it is important to calculate whether or not the money saved by doing a balance transfer will be worth the fees charged.
Ultimately, whether or not a money transfer credit card is a good option for you depends on your financial situation.
If you are confident that you will be able to pay off your balance within the introductory period and you are aware of the potential fees involved, then a money transfer credit card could help you improve your credit score.
However, if you are unsure about your ability to repay the debt or you are not comfortable with the fees associated with a balance transfer, it may be better to look into other options.
How to use a balance transfer credit card
If you decide that a balance transfer credit card is the right option for you, there are a few things to keep in mind in order to make the most of your new card.
First of all, it is important to make sure that you are aware of the interest rate on your balance transfer credit card. Many cards offer a 0% intro APR period, but after that, the interest rate can be quite high.
Make sure that you are aware of the interest rate and calculate how long it will take you to pay off your balance before the intro APR period ends.
Secondly, it is important to be aware of the balance transfer fee that is associated with your card. This fee is typically a percentage of the total amount being transferred, so it is important to calculate whether or not the money saved by doing a balance transfer will be worth the fees charged.
Finally, once you have transferred your balance to your new card, it is important to make sure that you are making payments on time and in full each month. This will help you to avoid accruing interest and will also help you to improve your credit score.
By following these tips, you can make the most of your balance transfer credit card and use it to improve your financial situation.
How to Choose a Balance Transfer Card
Balance transfer credit cards are a great way to consolidate your debt and save money on interest. But with so many balance transfer cards on the market, it can be hard to know which one is right for you.
Here are a few things to consider when choosing a balance transfer card:
The interest rate: Look for a balance transfer card with a low-interest rate. This will help you save money on interest charges and pay off your debt more quickly.
The balance transfer fee: Many balance transfer cards charge a fee for the balance transfer itself. This fee is usually between 3% and 5% of the total amount being transferred. Make sure you know what the fee is before you apply for the card.
The credit limit: Make sure the balance transfer credit card you choose has a high enough credit limit to cover your balance transfers. If not, you may end up being charged interest on the balance that remains after the transfer.
The introductory period: Many balance transfer cards offer an introductory 0% APR period. This could be anywhere from 6 to 18 months. During this time, you will not be charged any interest on your balance transfers. This can help you save a lot of money on interest charges.
Remember, the key to using a balance transfer credit card successfully is to pay off your debt before the introductory period ends. If you still have a balance when the intro period expires, you will be charged interest on that balance at the regular APR.
So, make sure you choose a balance transfer card with an intro period that gives you enough time to pay off your debt.
By keeping these things in mind, you can choose the best balance transfer credit card for your needs and save money on interest charges.
If you have bad credit, there are alternatives to a balance transfer.
If you’re looking to consolidate your debt but have bad credit, you may be thinking about a balance transfer. However, there are a few things to consider before you decide if a balance transfer is a right move for you.
First, balance transfers typically have a fee of 3-5% of the balance being transferred. This can add up to a significant amount of money, particularly if you’re transferring a large balance.
Second, your credit card issuer may require that you maintain a certain balance on your new card to qualify for the introductory rate. If you’re unable to meet this requirement, you could end up paying more in interest than you would have with your old card.
So what are some alternatives to a balance transfer if you have bad credit?
Take a Personal loan
One option is to take out a personal loan. Personal loans can be used for any purpose, including consolidating debt. And while personal loans typically have higher interest rates than balance transfers, they may still be lower than the interest rate you’re currently paying on your credit card.
Another advantage of personal loans is that they usually have fixed interest rates, so you’ll know exactly how much your monthly payments will be. Finally, personal loans typically don’t have any fees associated with them.
So if you’re looking for a way to consolidate your debt without paying a balance transfer fee, a personal loan may be a good option for you.
Earn extra money to pay off debt.
If you have bad credit, a balance transfer may not be an option for you. However, there are other ways to get out of debt. One option is to earn extra money to pay off your debt.
This can be done by getting a part-time job or picking up some freelance work. You can also look for ways to increase your income, such as asking for a raise at work or finding a better-paying job.
Another option is to cut back on your expenses and use the extra money to pay off your debt. This can be done by eating out less, cutting back on unnecessary purchases, and finding ways to save money on your monthly bills. By taking action and making some changes in your spending habits, you can get out of debt and improve your financial situation.
Work on improving your credit scores by paying off debts and limiting credit usage.
One option is to work on paying off your debts. This can help to improve your credit utilization ratio, which is one of the key factors that determine your credit score. Another option is to limit your credit usage.
This means using less than 30% of your credit limit on each of your cards. By doing this, you’ll show creditors that you’re able to manage your finances responsibly.
Finally, you can also try to get a secured credit card. These cards require a deposit, but they can help you to rebuild your credit by showing that you’re able to make timely payments.
Whatever route you choose, remember that the goal is to improve your credit score so that you can get access to better financial products in the future.
Work on improving by paying off debts and limiting credit usage. Doing this will help show creditors that you’re able to manage your finances responsibly and help improve your chances of getting approved for future loans and lines of credit.
Work with a Debt Settlement Company
Another alternative to a balance transfer is to work with a debt settlement company. Debt settlement companies negotiate with your creditors to try to get them to agree to a lower payoff amount.
If they are successful, you would then pay off your debt in one lump sum. This can be a good option if you’re struggling to make your monthly payments and are at risk of defaulting on your debt.
However, there are a few things to consider before you decide to work with a debt settlement company. First, debt settlement can hurt your credit score. Second, your creditors may not agree to settle your debt for less than what you owe.
And finally, debt settlement companies typically charge a fee for their services. This fee is typically a percentage of the total debt being settled.
So if you’re considering working with a debt settlement company, be sure to do your research and understand the potential risks and fees involved.
So there you have it, our top two picks for the best credit card for a bad credit balance transfer. Both of these cards offer great features and benefits, so be sure to check them out if you’re looking to improve your credit score.
We hope this article has helped you understand how secured cards work for balance transfer and which one might be the best option for you.
Have you ever used a secured credit card work for a balance transfer? If so, we want to hear from you! Share your experiences in the comments below.