Best Balance Transfer Cards for Bad Credit for 2024

If you have bad credit, it can be challenging to find credit cards that you qualify for. But if you're looking to transfer high-interest balances to a new card with a lower rate, you may have options.

Balance transfer offers are a popular way to pay off credit card debt. With this type of offer, you transfer your debt to a new credit card with a lower interest rate. You can save quite a bit of money this way, but the tricky part is finding balance transfer cards for bad credit.

It takes a high credit score to qualify for most balance transfer credit cards. If you're working on your credit, you've probably found there aren't many offers you can get. You're not entirely out of luck, though, as there are a few card options open to applicants with low credit scores.

How balance transfers work

A balance transfer is when you move existing debt onto a credit card. It's usually done with credit card debt by transferring one or more high interest balances to another card. There are also some balance transfer cards that accept other types of balances, such as loan debt. Most cards charge a small balance transfer fee (normally 3% to 5%) for receiving a balance transfer.

The point of doing a balance transfer is to get a lower interest rate. Let's say you have a $5,000 balance on a card with a 29.99% APR (annual percentage rate, or the annual interest rate the card charges). If you transfer that to a balance transfer credit card with a 14.99% APR, you're paying about half as much interest going forward.

Many credit cards accept balance transfers, but that alone doesn't make them good balance transfer cards. For a balance transfer to be worth it, the new card needs to have a lower interest rate than the old one.

It's easy to find this when you have good credit or excellent credit, because the best balance transfer cards offer an intro 0% APR for an intro period after account opening. With a lower credit score, your options are much more limited.

LEARN MORE: A Complete Guide to Balance Transfers

Is a balance transfer card for bad credit right for you?

In most cases, a balance transfer card for bad credit isn't worth it. There aren't many of them available to begin with, and hardly any have a low intro APR offer.

That also brings us to another problem -- balance transfer cards for bad credit are typically secured credit cards. To get a secured card, you need to pay a security deposit upfront. The deposit amount is usually equal to the card's starting credit limit.

So, if you want a balance transfer card for bad credit, you're probably going to need to pay a deposit. But if you have the money for a security deposit, it'd make more sense to put that money toward your debt.

Balance transfers are great for consumers with credit card debt and high credit scores, meaning a FICO® Score of 670 or above. For those with poor credit or lower credit scores, it won't work nearly as well because there are so few balance transfer options.

How can a secured balance transfer card help your credit?

For those looking to build or establish credit, a secured card can be a helpful tool. However, not all secured cards are created equal. When searching for the right one, it's important to look for a card that reports your activity to all three major credit bureaus on a monthly basis.

Some cards only report to one, which may hinder your progress in building a solid credit history. By choosing a secured card with monthly reporting to all three bureaus, you can take a proactive step towards reaching your credit goals and improving your overall financial health.

While balance transfer cards for bad credit may come with certain limitations, strategically using these cards can help you get your finances back on track.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

Our highest-rated credit cards have:

• A rewards rate above 2% (or 2x points or miles) with average spending, or competitive 0% intro APR balance transfer and purchase offers
• Attainable welcome bonuses that make up for any annual fees
• Low annual fees or a balance transfer fee of 3%
• Top perks such as purchase and travel protections, no foreign transaction fees, travel credits, and status upgrades

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.