A new credit card with a low introductory APR on balance transfers can be a great option to help you pay down debt and improve your credit score. This type of card lets you move high-interest debt to a new card with a lower rate, potentially saving you money on interest and helping you pay off debt faster. Keep in mind that eligibility criteria vary, and if you have fair or average credit, you might encounter fewer options compared to those with good or excellent credit.
Let’s explore the likelihood of getting approved for a balance transfer card with a fair or average credit score and how you can use a balance transfer offer to improve your creditworthiness.
What is fair credit?
"Fair credit" refers to a specific range of scores within a credit score model. Credit scores help credit card issuers decide whether to approve a credit card application and determine certain terms on the card if approved, such as the credit limit and interest rates that apply to certain transactions like purchases and balance transfers after any low introductory APR offers expires.
While different issuers may use different credit score models to calculate your credit score, common factors that typically contribute to your score include your payment history, credit mix, credit history and credit utilization.
What is average credit?
“Average credit” is a term that may be used to describe a credit score that falls within the fair range. If your credit score is in this range, it may indicate a mixed credit history, such as occasional late payments or high credit utilization. While not considered poor, average credit may still limit your access to the most competitive balance transfer offers.
That said, having average credit doesn’t guarantee you won’t qualify for a new credit card with a balance transfer offer. Additionally, it may mean you need to look for specific options. Taking steps to improve your credit score before applying can help increase your approval odds and potentially access better terms.
Finding a balance transfer credit card with fair or average credit
Even if you have fair or average credit, finding a balance transfer card that works for you is still possible. While the range of offers might be smaller, there are cards designed specifically for people in your credit range. It's worth exploring the available options and comparing terms to discover a card that can help you manage and consolidate your debt.