Just because you’ve hit a few fiscal bumps in the road over the past few years does not mean you are destined to remain trapped in a world of high debt and no better than fair (580-669) credit.
If you are like many Americans, a substantial portion of your debt is tied up in high interest credit cards and you may find yourself stuck in cycle of making minimum monthly payments, while never making a meaningful dent in the balance thanks to high (and rising!) interest rates.
An effective tool to help you break that cycle, pay down your debt and improve your credit score is a credit card with a strong balance transfer offer. These cards allow you to transfer your existing balance from a high-interest card to your new card. The goal, of course, is to move your balance from a card with a high interest rate to one with a significantly lower or even 0% APR for a time.
Lower interest charges mean you can apply more of your monthly payment to knocking out the principal rather than paying charges. Now, 0% balance transfer offers for fair credit scores aren’t common and tend to come from credit unions and smaller banks; however, if the APR is well below what you’re paying on your existing balance, it could still save you a lot of money to move your balance.
When looking for a good balance transfer card, you will also want to consider the annual fee, the balance transfer fee, the introductory APR on purchases and the standard APR.
Take a look at a couple of options for credit cards that offer balance transfers for people with fair credit. You could also explore a personal loan to help you get your credit card debt under control.
Best balance transfer cards for fair credit
Frequently asked questions
Can I get a balance transfer credit card with fair credit?
Yes, it’s possible to get a balance transfer credit card with fair credit, but the offers might not be as generous as those for applicants with good or excellent credit. You might find cards with shorter 0% introductory APR periods or higher balance transfer fees. Some issuers do offer cards specifically designed for fair credit, so it’s worth exploring those options.
What credit score do you need for a balance transfer credit card?
For the best balance transfer credit cards with 0% introductory APRs, you typically need good to excellent credit, meaning a FICO score of 670 or higher. While some cards might be available for those with fair credit (580-669), the terms (like the length of the 0% APR period and the balance transfer fee) may be less favorable.
Will a balance transfer hurt my credit score if I have fair credit?
A balance transfer can have a mixed impact on your credit score, even with fair credit. Initially, you’ll likely see a small, temporary dip due to a hard inquiry on your credit report from the new application and a reduction in your average age of accounts by opening a new card. However, if the transfer helps you significantly lower your credit utilization ratio (by having a higher overall credit limit and paying down debt) and you consistently make on-time payments, it can ultimately improve your credit score in the long run. The key is to use the balance transfer responsibly to pay down debt, rather than accumulating new debt.
Are 0% APR balance transfer offers available for fair credit?
Yes, 0% APR balance transfer offers are available for fair credit, but they are typically harder to come by, and they might have shorter introductory periods or higher balance transfer fees compared to offers for those with good or excellent credit. Look for cards specifically marketed towards “fair” or “average” credit.