badcredit

What if I have bad credit and can’t balance transfer?

Unable to do a balance transfer because of bad credit? Discover what you can do next to get your finances on track and apply for a balance transfer credit card

Balance transfer credit cards can be a great way to consolidate your debt and take control of your finances. However, you'll need to have good credit and a steady income to apply and receive approval. If you have bad credit and are unable to apply for a balance transfer, we've summarised four easy steps you can follow to improve your credit file and start consolidating your debts.

How does a balance transfer credit card work?

Balance transfer credit cards are used to move a debt that's collecting a high level of interest to a card with a low or 0% promotional interest rate. This low promotional rate will then revert to the standard interest or cash advance rate when the introductory offer ends. Before you go looking for a balance transfer credit card, take into account the amount you wish to transfer, your ability to repay and how you else you intend to use the card. Not all balance transfer credit cards work in the same way, so it's important to compare your options to find the one that'll offer you the most value.

Understanding balance transfer credit cards and bad credit

Most people decide to transfer their outstanding debts to such cards in order to enjoy reduced interest rates. However, credit card providers often don't approve balance transfer credit card applications from people who suffer from tainted credit files. Not all hope is lost though. There are other ways people with bad credit can work to consolidate their debts and improve their credit file.

Credit information can stay on your consumer credit account for up to (but not limited to) 5-7 years depending on the severity of a credit infringement. However, even if one payment has been received for overdue debts, the mark may remain on your credit report. Former overdue debts and late payments can have a negative impact on your ability to gain credit, which stresses the importance of keeping your payments and finances in order and paying your bills on time. Your chances of approval can be increased by repaying your outstanding debts and improving your credit file.

Repairing your credit file

If you're looking to apply for a credit card or balance transfer in the future, make sure you've spent the time repaying your debts and repairing your credit file before applying. Rejected applications can have a negative impact on your credit file, so you'll only want to apply for a balance transfer credit card when you meet the eligibility requirements and are likely to receive approval.

How to increase the chances of balance transfer approval

Four things you can do if you're unable to get a balance transfer

  1. Get your finances and debt in order

    The first step to consolidating your debt is understanding exactly how much you owe. Whether you use a pen, paper and calculator or an app such as the Pocketbook app, begin listing each debt you owe and include the interest it attracts to give you a full overview of how much you owe. You can then reorder the list and place priority on high-interest debts first. Now it's time to look at all of your expenses and start eliminating the ones you don't need. Examples of expenses to cut back on include magazine subscriptions, expensive internet plans, cable TV and gym memberships. Once you have an idea of how much you owe and how much you need to repay, you can start looking at your debt consolidation options. Learn how to use the Pocketbook app to take control of your money and expenses.

  1. Compare and enquire about debt consolidation loans

    If you're unable to apply for a balance transfer, a personal loan is probably your next best option. Most leading banks in Australia offer debt consolidation loans and these can help you combine your debts under the single account. You can then repay your entire debt with a single loan, meaning you'll only have to worry about a single payment each month. A debt consolidation loan can be a worthwhile way to repair bad credit because unlike a credit card, you won't have the temptation to spend.

  1. Payday loan

    A payday loan is another option for applicants with bad credit. The requirements for a payday loan are generally quite lenient and are less strict than credit cards. However, though the funds are generally quicker to access it should be noted that there are heavy fees involved and you need to pay it back in a much shorter period. Before applying, consider the fees and the period in which you'll need to repay your balance to calculate whether you can afford the loan.

  1. Consider a credit repair service

    While there is no guarantee that a credit repair service can completely fix your file, it still may help the overall status of your file. If you’ve filed for bankruptcy or something similar, these tend to stay on your file for a period of up to 5-7 years. Credit repair services can help you repair your credit file to get your finances back on track.

Credit repair services

Balance transfer credit card comparison

Rates last updated May 21st, 2018
$
% p.a.

Your search criteria didn't return any products. Click to reset your filter options and search again
Name Product Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Amount Saved Product Description
Westpac Low Rate - Online Offer
0% p.a. for 26 months with 2% balance transfer fee
13.49% p.a.
$0 p.a. annual fee for the first year ($59 p.a. thereafter)
Take advantage of 0% p.a. for 26 months on balance transfers with a one-time 2% balance transfer fee and a $0 first year annual fee.
HSBC Platinum Credit Card
0% p.a. for 22 months with 2% balance transfer fee
19.99% p.a.
$0 p.a. annual fee for the first year ($129 p.a. thereafter)
Offers a 0% p.a. for 22 months balance transfer, $0 annual fee for the first year and an annual fee refund each year when you spend $6,000.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
0% p.a. for 18 months
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Take advantage of 0% p.a. on balance transfers for up to 18 months. $64 in the first year ($129 p.a. thereafter), plus, bonus Velocity Points.
NAB Low Fee Card
0% p.a. for 18 months with 2% balance transfer fee
19.74% p.a.
$30 p.a.
Receive complimentary purchase protection insurance, a 18 month balance transfer offer and special offers from Visa Entertainment.
St.George Vertigo Platinum - Online Offer
0% p.a. for 24 months with 1% balance transfer fee
12.74% p.a.
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Platinum card benefits including complimentary insurance, plus first year annual fee waiver and 0% p.a. for 24 months on balance transfers.
BankSA Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Receive a 3% p.a. for 36 months balance transfer and earn Qantas or Amplify Points per $1 spent. Plus, enjoy a $0 annual fee for the first year.
Citi Platinum Credit Card - 100k Bonus Points
0% p.a. for 15 months with 1% balance transfer fee
20.99% p.a.
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Earn 100,000 reward Points, enjoy a long-term balance transfer offer, a discounted first year annual fee and complimentary travel insurance.
BankSA Vertigo Visa
0% p.a. for 18 months with 1% balance transfer fee
13.74% p.a.
$55 p.a.
Enjoy a 0% p.a. for 18 months balance transfer offer. Plus, up to 55 days interest-free on purchases.
NAB Low Fee Platinum Card
0% p.a. for 24 months with 2% balance transfer fee
19.74% p.a.
$90 p.a.
Offers 7 complimentary insurance covers, a 0% p.a. for 24 month balance transfer and access to a 24/7 concierge service for a $90 p.a. annual fee.
St.George Vertigo Visa
0% p.a. for 18 months with 1% balance transfer fee
13.74% p.a.
$55 p.a.
Enjoy a 0% p.a. for 18 months balance transfer offer. Plus, up to 55 days interest-free on purchases.
Virgin Money Low Rate Credit Card
0% p.a. for 14 months
11.99% p.a.
$49 p.a.
Offers a discounted annual fee, $100 cashback when you meet the spend requirement and up to 14 months on balance transfers.
St.George Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Take advantage of 3% p.a. interest on balance transfers for 36 months. Plus, a $0 first year annual fee and Amplify or Qantas Points per $1 spent.
Citi Simplicity Card
0% p.a. for 15 months with 1.5% balance transfer fee
19.99% p.a.
$0 p.a.
Save with 5% cashback on eligible purchases (capped at $50 per month) for the first 90 days from approval. Plus, a 15 month balance transfer offer.
NAB Low Rate Platinum Card
0% p.a. for 6 months with 2% balance transfer fee
0% p.a. for 9 months (reverts to 13.99% p.a.)
$100 p.a.
Enjoy a 0% p.a. interest rate offer on purchases for 9 months and the protection of 7 complimentary insurances including overseas travel insurance.
American Express Velocity Escape Card
0% p.a. for 12 months with 1% balance transfer fee
20.74% p.a.
$0 p.a.
Earn uncapped Velocity Points on purchases, pay $0 annual fee for life and take advantage of a 0% p.a. for 12 months balance transfer offer.
American Express Explorer Credit Card
0% p.a. for 12 months with 1% balance transfer fee
20.74% p.a.
$395 p.a.
Receive 50,000 bonus Membership Rewards points, a yearly $400 Travel Credit and 2 entries per year to the American Express Lounge.
Citi Rewards Platinum Credit Card
0% p.a. for 26 months with 2.5% balance transfer fee
20.99% p.a.
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Earn reward Points per $1 spent, take advantage of a 0% p.a. for 26 month balance transfer offer, plus complimentary international travel insurance.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
0% p.a. for 18 months
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Earn up to 60,000 bonus Velocity Points in the first 3 months and enjoy a discounted annual fee of $64 for the first year.
HSBC Low Rate Credit Card
0% p.a. for 20 months with 2% balance transfer fee
13.25% p.a.
$79 p.a.
Receive up to 20 months interest-free on balance transfers with a 2% BT fee. Also enjoy exclusive offers with the home&Away Privilege Program.
Bank of Melbourne Amplify Card
3% p.a. for 36 months
19.49% p.a.
$0 p.a. annual fee for the first year ($79 p.a. thereafter)
Take advantage of a 3% p.a. for 36 months balance transfer offer, Amplify or Qantas points per $1 spent and enjoy a $0 annual fee for the first year.

Compare up to 4 providers

Frequently asked questions from our users

Back to top
Was this content helpful to you? No  Yes

Related Posts

Credit Card Offers

Important Information*
Westpac Low Rate - Online Offer
Westpac Low Rate - Online Offer

Interest rate

13.49

Annual fee

59
HSBC Platinum Credit Card
HSBC Platinum Credit Card

Interest rate

19.99

Annual fee

129
NAB Low Fee Platinum Card
NAB Low Fee Platinum Card

Interest rate

19.74

Annual fee

90
Citi Platinum Credit Card - 100k Bonus Points
Citi Platinum Credit Card - 100k Bonus Points

Interest rate

20.99

Annual fee

149

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

2 Responses

  1. Default Gravatar
    IanOctober 29, 2017

    I have a credit card debt with Coles and I wish to balance transfer to allow me to get on top off it and it off what institute can I approach? Thanks

    • Staff
      RenchOctober 29, 2017Staff

      Hi Ian,

      Thanks for your inquiry. Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice.

      You can also have a look on this page for helpful information and compare your options.

      You may click the name of your preferred card to know more details and you may click the green “Go to site” button to submit an online application through their official site.

      Best regards,
      Rench

Ask a question
Go to site