How Can I Transfer Balances When My Credit Is Limited?

Credit card issuers make it easy for consumers to transfer a balance from one credit card to another. If you own multiple high balance lines of credit, consider options for transferring the greatest balance and at the best rate. The process is moderate, but you must create a plan of action and stick to it. Following a custom fit balance transfer and repayment plan, you can achieve the greatest benefits from your credit cards as possible.

• 1

  Organize your credit cards from highest to lowest annual interest rate (APR). Look for a toll free customer support telephone number on the back of your credit card. Have a paper and pen ready so you can quickly note the company representative's name as well as any verbal promises made during the conversation, which you must confirm against your billing statement or online account later.

• 2

  Request a credit line extension. Emphasize your favorable payment history or number of years as a card holder to increase your potential for approval. Express a desire to transfer other card balances onto the card. Such transfers promise more earnings for your creditor, especially if you typically carry a card balance, and may encourage a favorable response.

• 3

  Transfer the card with the highest interest first. Transferring a higher interest balance to a lower interest card reduces your monthly fees, allowing you to pay a greater percentage of your card balances at the end of each month.

• 4

  Restrict your transfers to one or two cards. Balance transfers can be costly; in some cases, a transfer fee or percentage of the transfer amount up to a specified amount. Incurring such fees may not be beneficial if transferring multiple low balances.

• 5

  Create a plan for paying off the debt. Pay off your new card balance to within 30 percent of your credit limit to boost your credit score, which may have slightly dropped because of your previous high utilization rate (low gap between your balance and credit limit).