We are living in unusual and extraordinary times. What do you do if your balance transfer request is denied? An era of coronavirus, Covid-19, a global pandemic, social distancing, and …zero interest rate! The Federal Reserve cut interest rates to zero as part of an emergency response.
The world may be turned upside down, but there is a once-in-a-lifetime opportunity for debt relief if you have been denied a balance transfer request from your credit card provider. The important thing is not to get too desperate and fall for some of those “too good to be true” offers that will continually arrive in your mailbox. For years, companies like Credit 9 and Americor funotding have peddled low-interest offers that don’t always work as expected.
It is much easier to pay off a debt if you manage to get a lower interest rate, usually by requesting a balance transfer with another creditor. The only problem is that you can be refused, which can be disturbing for many applicants. Note that you still have options to bounce back from this ordeal; the important thing is to look for alternatives.
This guide will help you understand some of the main reasons your balance transfer request is denied.
What you need to know about balance transfers
Most people look for balance transfers because their new creditor offers them introductory 0% interest rate periods, which allows them to apply their payments to the actual principal amount held instead of the fees. interest. When looking for balance transfer options, look for a card that offers 0% interest and is fully compatible with your financial situation. The zero percent interest period typically ranges from 12 to 21 months, which is more than enough for most people to resolve their payment issues.
It’s worth noting that some creditors charge a balance transfer fee, which starts at around 3% of your total transfer. The balance transfer fees could hit you hard depending on your financial situation and end up making matters worse. Be sure to weigh the cost of the balance transfer against the potential interest rate savings to see if it’s the right choice for you.
In most cases, it is easy to secure the balance transfer if you have good or excellent credit above 660. This shows that you are a low risk candidate and that you are more likely to pay off your balance. In totality.
Of course, it would be of no use to you if your balance transfer is declined. Issuers can reject balance transfer requests for a number of reasons.
How and why a balance transfer request is refused
There are two different ways that credit card companies refuse balance transfers.
A) You can request a balance transfer to your pre-existing card but have it refused, or
B) You can request a new balance transfer credit card only to have the request declined.
The credit card company rejects your request
- Your credit score is not high enough. Most credit card companies will only approve an application if your credit rating is good to excellent. This is how they minimize non-payment problems and maximize their return on investment.
- You have demonstrated a long history of credit balance transfers. This leaves a bad impression on your claim and the issuers assume that you are not serious about paying down the debt. So try to avoid too many transfers in quick succession.
You have been approved for a new card but the balance transfer is refused
- This usually happens because of low credit limits. This is the maximum amount that can be charged to your card at any time. If your credit limit is lower than your balance transfer, your request will likely be rejected. In this case, you must reduce the amount of the balance to be transferred. This will go a long way in reducing your interest rates.
- Some balance transfer cards have a short period of time from opening the account before you can request a balance transfer. Most people have about three months to request a balance transfer. Try asking your credit card issuer how long you have before you can file a balance transfer request.
- You are trying to get a balance transfer from the same credit card company. Attempting to transfer the debt from your old card to a new one with the same company will likely be rejected. Be sure to read the fine print on the restrictions on transferring balances between cards.
What are my options?
Even if your balance transfer is declined, all hope is not lost and there are always options available.
Ask for help
Understanding your problem is half the solution, and you won’t be able to fix the problem unless it can be broken down into specific components. Therefore, you should immediately contact the issuer for more detailed information. Even if you fail to resolve the described problem immediately, you will know how to avoid rejection in the future.
Resubmit the request with a lower amount
In some cases, your balance transfer credit card will be approved, but the actual transfer amount may be declined due to your card limit. In this case, you can request a transfer request that is lower than your credit limit.
Consider debt consolidation
You can consolidate all of your existing debts into one package, and in some cases, you may even get a lower interest rate. This is the next best option if your balance transfer request is denied. It’s an effective option that works. Learn the truth about debt consolidation.
Consider a personal loan without a credit check
Being rejected for a balance transfer can be a blessing in disguise. You may be able to find a low interest personal loan no credit check on websites like Crixeo. exam that’s right for you. Remember to avoid personal loan companies and financial advisers with bad reviews.
Ask your issuer for a lower interest rate
You can always ask your credit card company to offer lower interest rates. They will accept your request in most cases, as this increases your chances of paying off your debt. You will not get zero interest rate but lowering your interest rate even slightly can help you pay off your debt faster and more efficiently.
Improve Your Credit Score
Request a credit report and look for errors that you can correct yourself. False information on the credit report can affect your score significantly, so while some issues may take time to resolve, your priority should be to improve your credit score. Make sure you check your credit score at least 3 times a year.
You can improve your credit score by making payments on time, keeping a low balance, and not asking for too many credit cards or loans in a short period of time.
Evaluate the card before applying
Before requesting a balance transfer credit card, it is important to take the time to understand the benefits of each.
- What are the balance transfer fees?
- How long do I have to request a balance transfer?
- What is the credit limit on the card?
- What is the typical transfer limit for the card?