Balance transfer options shrink as fewer consumers qualify for promotional rates

Fewer credit cardholders are qualifying for low-interest balance transfer offers in 2025, complicating debt relief efforts for borrowers with weaker credit, despite ongoing appeal of the strategy.

Balance transfers can still help borrowers escape punishing card debt, but the option is becoming harder to rely on as a broad fix. Data from the Federal Reserve Bank of Philadelphia shows that in 2025 fewer than 12% of large-bank credit card accounts carried promotional APRs, the lowest share since 2021, while the average purchase APR on general-purpose cards stood at 24.1%.

That matters because the cheapest offers usually go to the strongest applicants. Skyla Federal Credit Union says the best balance transfer deals tend to be reserved for borrowers with solid credit and relatively low balances compared with their credit limits. The Federal Reserve Bank of Philadelphia also says promotional rates depend on factors such as credit scores, income and credit history.

For many consumers, that creates a frustrating mismatch: the people most in need of relief are often least likely to qualify. NerdWallet notes that balance transfer cards can be out of reach for borrowers with weaker credit or higher debt loads, while Chase says issuers can decline transfer requests if the amount, including fees, exceeds the new card’s limit. Capital One also points out that some transfers are restricted by issuer rules, including limits on moving balances within the same company.

Even when approval comes through, the credit line may be too small to solve the problem. A partial transfer can still reduce interest costs, but it may leave the borrower with debt on both cards and a more complicated repayment schedule. Balance transfer fees, usually 3% to 5% of the amount moved, also need to be weighed carefully. For a $5,000 balance, a 5% fee adds $250, which can still be worthwhile if the borrower pays the debt off during the introductory period, but only if the monthly budget can support that plan.

Financial planners say the key is to do the maths before acting and to avoid assuming another promotional offer will be available later. Regina McCann Hess, a certified financial planner and president of Forge Wealth Management, says borrowers should work out the monthly payment needed to clear the debt before the introductory period ends and stick to it. If a balance transfer is not the right fit, alternatives include asking the card issuer for hardship help, speaking with a non-profit credit counsellor, considering a fixed-rate consolidation loan or using a repayment method such as the snowball or avalanche approach.