1. DEBT SOLUTIONS

Is a Balance Transfer Card Harder to Get Right Now?

Is a Balance Transfer Card Harder to Get Right Now?
 Updated 
Jun 28, 2025
Key Takeaways:
  • During a recession, it can be harder to get a balance transfer card.
  • Debt consolidation loans can be an alternative to balance transfers.
  • If your debt is truly serious, consider debt relief for a fresh start.

In April and May, credit card lenders drastically reduced the number of balance transfer offers they sent out, down by about 77% compared to the same time last year, according to a report by Mintel Comperemedia.

Due to loss of income from the coronavirus financial crisis, consumers may be relying more on credit cards. But now, lenders appear increasingly concerned about extending credit to people they believe may not be able to pay what they owe. For consumers, this means it could be harder to get a balance transfer card now than it was just a few months ago.

If you’ve been considering using a balance transfer to help you manage your debt, here’s what you need to know.

How does a balance transfer card work?

In general, balance transfer credit cards can be a useful tool to help manage debt. The cards offer a low or 0% interest rate for a limited amount of time (called a promotional period), which can help save on interest charges if you pay down the balance you transfer over during the promotional period. There’s typically a balance transfer fee of around 3%-5% of the amount you transfer.

Can I qualify for a balance transfer card even during the recession?

While the usual balance transfer terms are still available from most credit card companies, lenders are being more selective about who they give offers to. Normally, you’d need a good credit score (around 700+) and sufficient income relative to the amount of debt to qualify. However, every lender sets their own qualification criteria, and it can change as credit card companies re-evaluate the risk of these types of loans.

The important questions to ask yourself are:

  1. Is a balance transfer the best strategy for managing my debt?

  2. What other alternatives are there, and how do they compare?

If you’re going through a short-term hardship due to COVID-19, but are confident you can get back on track paying down debt once your income situation stabilizes, one alternative to a balance transfer would be to ask your lenders for forbearance.

If you were already struggling with heavy debt before the current recession, then a balance transfer may or may not help you. In fact, it could even make your debt situation worse.

Balance transfers make the most sense if you can pay all or most of the debt before the promotional period ends and if you’re transferring a relatively small amount of debt. It’s also important to calculate how much you’d save in interest charges compared to your current card and make sure it’s more than what the balance transfer fee on the new card would be.

Alternatives for managing personal debt

If a balance transfer doesn’t make sense in your situation, or you’re not able to qualify for one in the current environment, the good news is that you have other options, including:

Asking your credit card company for a forbearance could be the easiest way to get immediate relief from payments and collection calls, but it could also prolong your debt if interest continues to build up while you’re not making payments. A consolidation loan, credit counseling, and debt settlement all require that you have income so you can pay down your debt.

If you don’t have a job at the moment, ask your lenders for a forbearance. Once you’re employed again, consider the other options on the list. If your debt is so overwhelming that you can’t manage the payments even with an income, then bankruptcy may be your best option.

Wondering how to best manage your debt right now?

The good news is, there are several options available to help you manage your personal debt. To figure out what makes the most sense in your particular situation, it can help to talk to a Certified Debt Consultant who is trained and certified by the IAPDA to help consumers understand their debt resolution options. To get a free consultation with one of our Certified Debt Consultants, get started here.

Learn More:

We looked at a sample of data from Freedom Debt Relief of people seeking a debt relief program during May 2025. The data uncovers various trends and statistics about people seeking debt help.

Credit Card Usage by Age Group

No matter your age, navigating debt can be daunting. These insights into the credit profiles of debt relief seekers shed light on common financial struggles and paths to recovery.

Here's a snapshot of credit behaviors for May 2025 by age groups among debt relief seekers:

Age groupNumber of open credit cardsAverage (total) BalanceAverage monthly payment
18-253$8,864$274
26-355$12,615$380
35-506$16,479$431
51-658$17,240$528
Over 658$17,811$498
All7$15,142$424

Whether you're starting your financial journey or planning for retirement, these insights can empower you to make informed decisions and work towards a more secure financial future

Personal loan balances – average debt by selected states

Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.

In May 2025, 44% of the debt relief seekers had a personal loan. The average personal loan was $10,718, and the average monthly payment was $362.

Here's a quick look at the top five states by average personal loan balance.

State% with personal loanAvg personal loan balanceAverage personal loan original amountAvg personal loan monthly payment
Massachusetts42%$14,653$21,431$474
Connecticut44%$13,546$21,163$475
New York37%$13,499$20,464$447
New Hampshire49%$13,206$18,625$410
Minnesota44%$12,944$18,836$470

Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.

Tackle Financial Challenges

Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.

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Author Information

Sara Korn

Written by

Sara Korn

Sara Korn is a freelance writer who enjoys guiding people to helpful solutions and new and better ways of reaching their goals. She loves stories both on screen and on the page, and is passionate about learning, growing, and teaching.