Compare balance transfer credit cards for fair credit

A balance transfer card can be useful if you’re overwhelmed by high interest rates or need to consolidate debt. However, to get a good card, you usually need a good credit score as proof you can repay it.

Your credit score is one of the ways credit card companies determine your creditworthiness. If you have a fair credit score between 580 and 669, you might qualify for a balance transfer card, but you’ll likely pay more in fees.

Fair credit explained

If you’re new to credit, or working to get your credit back on track, you may find your score falls within the fair range of 580 and 669. You can still be approved for a credit card for fair credit, but it may have a high APR and low spending limit.

If your score is creeping up to the good range, work on building your score before making a big transfer. You could get better interest rates on loans, credit cards and even better insurance rates in some states.

Credit cards award good credit with offers of cash back, rewards, higher limits and low interest rates. Credit bureaus consider the following when determining your credit score:

What to expect from balance transfer cards if you have fair credit

If you have fair credit, you won’t qualify for the best balance transfer card and could see high APRs and transfer fees. Consider the following when applying for a card:

• Ongoing APR. If you see APR terms advertised as, for example, 13.24% to 23.24%, based on your creditworthiness, realize that lower rates are reserved for those with good or excellent credit. If you have fair credit, expect to pay an APR on the higher end of the range. Try to pay off your transferred balance fully before your 0% intro APR period on balance transfers runs out.
• More than just your credit score is considered. Credit card companies consider factors such as your income and outstanding debt along with your credit score.
• Your credit limit may be lower than you expect. A credit card provider’s profits depend on its customers’ ability to repay debt. Setting credit limits to manage their risk is part of this.

Who is a balance transfer card for fair credit good for?

If you’re considering balance transfer credit cards for fair credit, you could be looking for financial fresh start. Consider a balance transfer card if:

• Your debt matches your potential credit limit. Because your credit limit may be low, it’s important to consider how much you can move — and if you’ll save enough to make it worth it.
• The fees won’t outweigh the intro APR. Low interest allows you to pay down your debt more quickly, but a balance transfer fee can cut into that.
• Your intro APR is long enough. Paying off your balance before the intro APR ends can save you a lot in the long run. But if the revert rate is too high and you don’t pay it off, it could end up costing you more.

How to compare cards balance transfer cards for fair credit

When you’re comparing balance transfer credit cards you want to consider the following:

• Length of intro period. The low or 0% intro period offered may range from six to 21 months. But with a lower credit score, it’s not likely you’ll qualify for a card with a longer intro period.
• Reports to credit bureaus. If you have fair credit, look for a balance transfer card that reports to the big three credit bureaus — Equifax, Experian and TransUnion. If you make regular on-time payments, you could reap rewards that come with a higher score.
• Fees. Consider what you’ll pay in fees. Some charge a balance transfer fee between 3% and 5%, or high annual fees.

What makes the best balance transfer card for fair credit?

• 0% intro APR period. With a fair credit score, you’ll likely get cards with six months of 0% intro APR period. This isn’t bad, considering the alternatives. Treat this as a six-month interest-free loan and use it to pay off or lower your debt.
• Low ongoing APR. Once the intro APR period ends, you’ll pay the standard APR. The best cards will have lower ongoing interest rates compared to similar cards. This is important, especially if you know you can’t pay off your debt during the 0% promotional period.
• Balance transfer fees. When you make a balance transfer, you’ll pay a fee. Typically, the fee is either 3% or 5% of the amount with a minimum of $5 or $10. Getting a card with a lower fee will help you save even more money on your balance transfer.
• No annual fee. Finding a card for fair credit with 0% intro APR period and no annual fee is hard. It’s likely that this type of cards are either secured cards or student cards. But even if you can’t find such card with no annual fee, try to get the one with the lowest annual fee you can get.

Should you improve your credit score before applying for a balance transfer?

Whether you should wait to apply and improve your credit first depends on your individual situation. What type of limit, intro APR and fees are associated with the new card will determine whether it’s worth it.

For those with fair credit, those factors may not add up to something that can save a substantial amount of money. In which case, it would be better to avoid the hit to your credit and simply keep building until you can get a better deal.

Applying for a balance transfer card with fair credit

Before you apply, be sure to compare your options. Look closely at the fees, revert rate and intro period before making a selection right for you.

To apply for a balance transfer card, you typically have to be at least 18 years old, or 19 in some states. While you’re applying, have the following information on hand:

• Your name, residential status and residential address
• Your Social Security number
• Your email address, phone number and date of birth
• Financial information like your annual salary and wages

What to do if your application is denied

If you’re denied, the credit card provider will likely include a note explaining why your application didn’t make the cut. From there, you can work on whatever factors were outlined.

There are a few steps you can take to improve your credit. Paying down your balances on time every month, not using your cards, not opening any more cards or applying for additional credit and not closing any accounts that you pay off will help boost that score.

Keep track of your score, and after a few months, you may want to apply again. If you can wait a little longer and boost your creditworthiness, you may be able to apply for an even better balance transfer card.

How to make the most out of a fair-credit balance transfer card

• Pay your balance in full. Make sure to pay off your balance before the introductory period is up to avoid a high revert rate. The higher APR could significantly cut into whatever money you saved during the intro period.
• Low APR. If you don’t qualify for a 0% intro APR period, make sure the APR, annual fees and transfer fees are lower than what you’re already paying.
• Don’t use the credit card. It may be tempting to use your credit card for new purchases. But if your goal is to pay down debt, put your balance transfer card away and focus on paying the balance.
• Make more than the minimum payment. It’s likely you won’t be able to pay off your balance before the end of the 0% intro transfer offer if you’re only making minimum payments. Divide your balance by the number of months the offer is good for to get what your monthly payments should be.

Bottom line

Getting a balance transfer card is a good place to start cleaning up your finances. Getting the best balance transfer rates — even for as little as six months — can save you hundreds of dollars to put towards debt. Consider your credit and financial situation before you decide on a balance transfer credit card.

Frequently asked questions

• How do I find out my credit limit?

  Credit card providers have their own formulas for determining your credit limit, which typically includes analyzing your credit score and income. It’s hard to know what your limit will be until you are approved. Look for cards that offer preapproval so your credit score isn’t affected by too many credit checks.

• What are the typical fine print details of a 0% intro APR promotion?

  Look out for balance transfer fees that are added on to any money you transfer to the card. Pay attention to things like when the 0% intro APR expires and what the revert APR will be if you can’t pay off the whole balance.

  Also check for conditions that may cause your promotion to end early, such as making a late payment.

• How long does it take for a balance transfer to go through?

  The amount of time a balance transfer takes varies by card, but it can take 10 or more days from the time you get your credit card agreement after approval.