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.
    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 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 June 26th, 2017.

NAB Low Fee Card

BT period has been changed to 16 months, and is valid until 1 October 2017.

June 1st, 2017

NAB Velocity Rewards Card

A new balance transfer offer of 0% p.a. for 6 months which is valid until 1 October 2017.

June 1st, 2017

NAB Qantas Rewards Card

A new balance transfer offer of 0% p.a. for 6 months which is valid until 1 October 2017.

June 1st, 2017

View latest updates

Jonathan Choi Jonathan
$
% p.a.

Your search criteria didn't return any products. Click to reset your filter options and search again
Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Interest Saved
Virgin Australia Velocity Flyer Card - Exclusive Offer
Earn 2 Velocity Points on top of the standard earn rate per $1 spent in the first 3 months, plus a $129 Virgin Australia Gift Voucher each year.
0% p.a. for 18 months 20.74% p.a. $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
HSBC Platinum Credit Card
Earn 1 Reward Point per $1 of eligible spend and receive complimentary travel and purchase protection insurances.
0% p.a. for 22 months with 2% balance transfer fee 19.99% p.a. $99 p.a. Go to site More info
ANZ Platinum Credit Card - Exclusive Offer
Receive a low introductory offer of 0% p.a. on purchases for 3 months and 0% p.a. on balance transfers for 12 months.
0% p.a. for 12 months 0% p.a. for 3 months (reverts to 19.74% p.a.) $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
St.George Vertigo Visa
Receive up to 55 days interest-free on purchases and the ability to make contactless payments with Visa payWave technology.
0% p.a. for 14 months 13.24% p.a. $0 p.a. annual fee for the first year ($55 p.a. thereafter) Go to site More info
HSBC Low Rate Credit Card
Receive up to 55 days interest-free on purchases. Also enjoy exclusive offers with the home&Away Privilege Program.
0% p.a. for 15 months with 2% balance transfer fee 13.25% p.a. $55 p.a. Go to site More info
NAB Low Rate Credit Card
Receive up to 55 days interest-free on purchases, special offers from Visa Entertainment and Tap and Pay capabilities.
0% p.a. for 16 months with 2% balance transfer fee 13.99% p.a. $59 p.a. Go to site More info
Citi Rewards Platinum Credit Card
A long-term balance transfer offer with the Citi Rewards Platinum Card. Earn extra points on eligible international spend, plus complimentary travel insurance.
0% p.a. for 24 months with 1.5% balance transfer fee 20.99% p.a. $49 p.a. annual fee for the first year ($149 p.a. thereafter) Go to site More info
NAB Premium Card
Benefit from premium credit card advantages including travel insurance, Platinum Concierge Service plus 0% p.a. for 20 months on balance transfers.
0% p.a. for 20 months with 2% balance transfer fee 19.74% p.a. $90 p.a. Go to site More info
American Express Essential®  Credit Card
Get Smartphone Screen Insurance of up to $500 when you pay for your phone or contract with your Essential Credit Card.
0% p.a. for 12 months with 1% balance transfer fee 14.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Platinum
Offers complimentary travel insurance, complimentary purchase insurance and access to a 24/7 personal concierge service.
0% p.a. for 20 months 12.74% p.a. $99 p.a. Go to site More info
ANZ Low Rate Platinum
Enjoy platinum benefits with exclusive discounts, complimentary travel and purchase insurances and a 24/7 personal concierge.
0% p.a. for 16 months with 2% balance transfer fee 11.49% p.a. $99 p.a. Go to site More info
NAB Low Fee Card
Receive complimentary purchase protection insurance, special offers from Visa Entertainment and up to 44 days interest-free on purchases.
0% p.a. for 16 months with 2% balance transfer fee 19.74% p.a. $30 p.a. Go to site More info
NAB Velocity Rewards Premium Card
Offers up to 1 Velocity point per $1 on purchases, combined with complimentary insurance covers and a concierge service.
0% p.a. for 6 months 19.99% p.a. $150 p.a. Go to site More info
NAB Velocity Rewards Card
This dual Amex and Visa card offers up to 0.75 Velocity Points per $1 spent on eligible purchases and special Visa Entertainment offers.
0% p.a. for 6 months 19.99% p.a. $95 p.a. Go to site More info
NAB Qantas Rewards Card
A dual Amex and Visa card that allows you to earn up to 0.75 Qantas Points per $1 spent, plus complimentary purchase protection insurance.
0% p.a. for 6 months 19.99% p.a. $95 p.a. Go to site More info
NAB Rewards Classic Card
Earn 0.75 NAB Rewards Points per $1 spent and receive complimentary purchase protection insurance.
0% p.a. for 6 months 19.99% p.a. $95 p.a. Go to site More info
NAB Rewards Platinum Card
Collect 50,000 bonus points when you spend $2,500 on everyday purchases within 60 days of account opening.
0% p.a. for 6 months 19.99% p.a. $195 p.a. Go to site More info
Woolworths Everyday Platinum Credit Card
Receive a $100 eGift Card when you apply by 30 June 2017 and make an eligible purchase by 31 July 2017.
0% p.a. for 14 months 19.99% p.a. $0 p.a. annual fee for the first year ($49 p.a. thereafter) Go to site More info

Frequently asked questions from our users

Go through your credit card statement. Alternatively, you can get in touch with your credit card provider and get the required information.

Different banks have different minimum limits and you can expect to transfer as little as $500. When it comes to the maximum amount you can transfer, you normally cannot transfer more than the credit limit of the card.

Credit cards come with their share of fees and charges. When you undertake a balance transfer, the credit card provider tends to charge you a fee that is a fixed percentage of the amount you transfer.

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

Related Posts

American Express Velocity Platinum Card
American Express Velocity Platinum Card

Interest rate

20.74

Annual fee

375
ANZ Platinum Credit Card - Exclusive Offer
ANZ Platinum Credit Card - Exclusive Offer

Interest rate

19.74

Annual fee

87
St.George Vertigo Platinum
St.George Vertigo Platinum

Interest rate

12.74

Annual fee

99

Ask a Question

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

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback