Bad Credit, Better Choices: 4 Balance Transfer Cards Worth Considering

It can be quite difficult to pay off high-interest debt and maintain a good credit score. So one of the easiest and most popular ways you can pay your debt and improve your credit is to do a balance transfer. Transferring your balance to a new credit card that has lower interest and other features should definitely help you.

Although balance transferring is easier said than done, there are certain criteria, like having good or excellent credit, to make you eligible to get a new credit card to do a balance transfer. But don’t worry if you don’t have good credit. Mentioned here are some of the ideal balance transfer cards for bad credit.

In this article, we’re going to talk about…

1. What is a balance transfer?
2. What do Balance Transfer Cards for Bad Credit do?
3. Capital One Platinum Secured Credit Card
4. Bank of America Secured Credit Card
5. Citi Diamond Preferred Credit Card
6. Citi Double Cash Card

What Is a Balance Transfer? 

When you move the debt you owe from one credit card to another card – most likely a new one that has a lower interest – it is known as a Balance transfer. So, the credit card you decide to transfer your balance to is what we generally call the balance transfer card for bad credit. You can transfer a balance from one bank to another or within the same bank if their conditions allow you to. 

What Do Balance Transfer Cards for Bad Credit Do?

Usually, credit card balance transfers can be useful to consumers who have credit card debt that has high interest to save money by transferring the amount of money they owe to a new credit card with a low rate of interest. Credit cards that allow balance transfers can help you take control of your credit ratings by offering low interest, no intro APR, and other rewards for transferring of balance. 

Not all banks and credit card companies allow you to balance transfer your debts, so choosing a balance transfer card that accepts balance transfers with bad credit can be very challenging.

Best Balance Transfer Cards for Bad Credit

1. Capital One Platinum Secured Credit Card

You can go for a Capital One platinum secured credit card if you want a secured credit card that has a low deposit amount. With Capital One, you can make improvements in your credit score for sure.

Not only do they have a lower initial security deposit, but they also do not collect an annual fee. It does not have a monthly maintenance fee either, which makes Captial One the best among the other balance transfer cards for bad credit since most of the other secured credit cards have both fees.

Card Specifications

APR at the start: 0%
Regular APR: 29.74%

Fees

Annual Fee: 0%
Membership Fee: None
Foreign transaction Fee: None

Pros

• Capital One credit card does not collect an annual fee or any other hidden fee. 
• The initial deposit for a secured card is very low. 
• You can become eligible for an unsecured credit card by paying on-time payments for five months. This also increases your credit limit to $200 and greater. 
• With the CreditWise app offered by CapitalOne themselves, you can check your credit score on a specific time interval for free. 
• You have 24×7 access to your credit card account with the Capital One online mobile app. 
• 0% Fraud Liability – You are not liable for any unauthorized charges.

Cons

• There are no rewards.

2. Bank of America Secured Credit Card

Bank of America secured credit cards are great for flexible cashback. With a $200 minimum initial security deposit and no annual fee, the Bank of America credit card comes next in the competitive secured credit cards list. It is also one of the best balance transfer cards for bad credit since you have a higher chance of increasing your credit scores with all the cash-back features it offers.

Most importantly, Bank of America credit card accepts balance transfers from other credit cards, although they don’t accept balance transfers between two credit cards belonging to Bank of America.

Card Specifications

APR at the start: 0%
Regular APR: 26.99%
Rewards: cashback of 1% – 3%

Fees

Annual Fee: 0%
Membership Fee: None
Foreign Transaction Fee: Yes

Pros

• The card offers many cash-back rewards.
• You are not charged an annual fee.
• You are not required to have a minimum credit.
• On-time payments can make you eligible for an upgrade to an unsecured credit card.

Cons

• You have to pay a minimum deposit.
• You’ll be charged a foreign fee, too.

3. Citi Diamond Preferred Credit Card

If you had a 0% intro APR on the balance transfer for the first 21 months, the low interest would allow you to quickly redeem your credit score just by paying on time.

There is a fee of $5 or 5%, or whichever is greater, for the balance transfer. All you need to do is apply for a Citi Diamond Preferred card and transfer your unpaid debt from another high-interest credit card to Citi Diamond Preferred card within 4 months of the opening of the account.

Card Specifications

Intro APR: 0%
APR: 17.24% – 27.99%

Fees

Annual Fee: $0
Payment Return Fee: Up to $41
Foreign transaction Fee: 3%

Pros

• You don’t have to pay an annual fee, late fees, or penalty fees.
• 0% APR on balance transfers for 21 months, and variable APR after that will be from 18.24% – 28.99% based on your creditworthiness.
• Quick Lock facility offers complete protection and 0% liability for unauthorized charges.
• Only 3% of the transfer fee is charged if the balance transfer is done within the first 4 months.

Cons

• $5 to 5% fee on balance transfer transaction.
• If not balance transferred within 4 months of buying the credit card, you will be charged 5% on each transfer.

4. Citi Double Cash Credit Card 

Citi Double Cash card is a good option if you want to transfer your balance with low credit. Not only does Citi accept balance debt transfers, but it also allows you to be free of APR for the first 18 months. You have several cash-back rewards available, too, but you can acquire them only if you make the payments on time. 

You will be charged a fee of $3 for each transfer completed within 4 months of account opening and 5% for each transfer after that. If you make the payments on or before the due date, within no time, you can pay back the debt since you have low interest with the Citi Double Cash card. 

Card Specifications

Intro APR : 0%
Regular APR: 18.24% – 28.24% (variable)
Rewards: 2% cashback

Fees

Annual Fee: $0
Late Fee: Up to $41
Foreign transaction Fee: 3%
Return Payment: Up to $41

Pros

• 0% APR only on the first 18 months of the balance transfer.
• If the minimum due is paid on time, you can get cash-back rewards.
• Intro fee for balance transfer of $3 for each transfer if done within 4 months of opening an account.

Cons

• You cannot earn cash back through a balance transfer.
• Unless you pay the full amount due, including balance transfers by the due date, you will be charged interest for purchases.

Frequently Asked Questions

1. What credit score is needed for balance transfer cards?

A typical balance transfer card expects you to have a good credit score of 650 and above. But, if you have poor credit, you can use the above-mentioned balance transfer cards for bad credit scores.

2. Do balance transfers hurt your credit?

There are a few factors in which the balance transfer can negatively affect your credit score. Like:

1. If you constantly transfer your debt balances to new credit cards.
2. If you do not take any action after the balance transfer to reduce the debt.

3. Can you be denied a balance transfer?

Yes, there are a few scenarios where there is a chance of your balance transfer getting rejected. For instance:

• If you do not have a fair credit score.
• If the amount of debt you request to transfer exceeds the credit limit.
• If you request a balance transfer with the same credit card issuer as the debt.

Wrapping Up

Finding the perfect balance transfer card for bad credit can be challenging but not impossible. You always have to remember that improving your credit and paying off your debt depends on the card you choose to do a balance transfer with.

Choose a credit card that has a low balance transfer APR, preferably no fee collected annually, and has no balance transfer fees, as well as with a minimum security deposit and balance transfer offers. So, you can reduce your burden with low-interest credit cards by balance transferring even with bad credit. 

Most importantly, if you need help increasing your credit score, or anything related to your credit, reach out to The Credit Pros immediately for quick solutions.