If you’re trying to climb out of debt, transferring what you owe to a low-interest credit card or balance transfer card can be a good solution.
The good news is that many different types of debts can be transferred to your credit card. A personal loan balance transfer can be done, along with auto loans, student loans and even other credit cards.
The tricky part is that which types of debts can be transferred vary by issuer. For a personal loan balance transfer, for example, you can use Citi, Bank of America®, Barclays, Capital One or Discover, but not American Express.
Here are the debt transfer policies from eight of the largest credit card issuers.
Credit card issuers won’t allow debt transfer among their own products
One thing is universal among credit card issuers: You can’t transfer within their own families. And the “family” can extend to a long reach of affiliates.
You can't transfer a balance from one Citi card to another, for example, or from a Wells Fargo personal loan to a Wells Fargo credit card. Additionally, many banks issue credit cards on behalf of other brands, such as airlines, hotels and stores, and the same restrictions apply to accounts with issuers' affiliates. For example, Chase is the issuing bank for the United℠ Explorer Card. If you had a balance on that card, you couldn't transfer it to a different Chase card.
Before choosing a card for balance transfers, make sure you know the affiliate relationships involved. For example, Citi, through its Department Store National Bank subsidiary, issues cards for scores of retailers. If you want to transfer a balance from, say, a high-interest Best Buy® card, you shouldn't bother looking at a Citibank credit card.
In most cases you won’t earn rewards on the balances that you transfer, either.
Rules for debt transfers by issuer
American Express
Can you balance transfer a loan? No. Balances from loans, like auto, student or home loans are not accepted.
Transfer restrictions: Balance transfers are available for new accounts on select consumer card products within the first 60 days of opening. Only balance transfers from cards that were not issued by American Express are eligible. Customers' balance transfer requests may be declined if any of their American Express accounts are not in good standing.
Transfer restrictions: Balance transfers are available for new accounts on select consumer card products within the first 60 days of opening. Only balance transfers from cards that were not issued by American Express are eligible. Customers' balance transfer requests may be declined if any of their American Express accounts are not in good standing.
Bank of America®
Can you balance transfer a loan? Yes. Customers can transfer balances from any credit cards, personal loans, student loans, auto loans or home equity loans from lenders other than Bank of America®, as well as gas cards, retail and department store cards.
Transfer restrictions: Affiliate credit cards issued by Bank of America® are not eligible for balance transfer.
Transfer restrictions: Affiliate credit cards issued by Bank of America® are not eligible for balance transfer.
Barclays
Can you balance transfer a loan? Yes. Eligible card members can transfer any loan, including credit card, personal, home equity, student and auto.
Transfer restrictions: Eligible card members can transfer any credit card debt from cards in the Visa, Mastercard, American Express and Discover networks. Customers cannot transfer balances on cards issued by Barclays to another Barclays account.
Transfer restrictions: Eligible card members can transfer any credit card debt from cards in the Visa, Mastercard, American Express and Discover networks. Customers cannot transfer balances on cards issued by Barclays to another Barclays account.
Capital One
Can you balance transfer a loan? Yes. Customers can transfer balances from other credit cards, personal loans, student loans and auto loans.
Transfer restrictions: Customers can't transfer a balance from another account issued or acquired by Capital One or any of its affiliates or subsidiaries. The total amount of the balance transfer, including any applicable fees, cannot exceed the amount for which cardholders are eligible.
Transfer restrictions: Customers can't transfer a balance from another account issued or acquired by Capital One or any of its affiliates or subsidiaries. The total amount of the balance transfer, including any applicable fees, cannot exceed the amount for which cardholders are eligible.
Chase
Can you balance transfer a loan? Yes. A customer can use a balance transfer check to pay a loan as long as the loan is not issued by Chase Bank USA, N.A. or its affiliates.
Transfer restrictions: Customers can't transfer balances from any other account or loan issued by Chase or its affiliates. Customers can't transfer more than $15,000, including fees and interest, within any 30-day period or transfer more than their available credit, including fees and interest.
Citi
Can you balance transfer a loan? Yes. Customers can transfer credit card debt, personal loans, student loans, auto loans and home equity loans.
Transfer restrictions: Customers can't transfer balances from other accounts issued by Citibank, N.A., or its affiliates. Additionally, customers can't transfer to the IRS. Balance transfer payments will process after the account is open for at least 14 days.
Transfer restrictions: Customers can't transfer balances from other accounts issued by Citibank, N.A., or its affiliates. Additionally, customers can't transfer to the IRS. Balance transfer payments will process after the account is open for at least 14 days.
Discover
Can you balance transfer a loan? Yes. Cardholders can transfer debts including credit and store cards, student loans, medical bills, gas cards, and auto loans.
Transfer restrictions: Customers can't use balance transfers to pay any Discover accounts. Customers can transfer any amount, up to their credit available for transfers, which may be less than their total credit line.
Transfer restrictions: Customers can't use balance transfers to pay any Discover accounts. Customers can transfer any amount, up to their credit available for transfers, which may be less than their total credit line.
Wells Fargo
Can you balance transfer a loan? Yes. Customers can request balance transfers from various creditors and loan types. Terms and conditions apply.
Transfer restrictions: Balance transfers are not available between accounts issued by Wells Fargo or any of its affiliates. Requests are only processed to validated creditors in the U.S. that can receive funds electronically.
Transfer restrictions: Balance transfers are not available between accounts issued by Wells Fargo or any of its affiliates. Requests are only processed to validated creditors in the U.S. that can receive funds electronically.
» CALCULATOR: How much you could save with a balance transfer
What to consider if you’re transferring loan debt
If you're facing a mountain of student loan debt — or any type of installment debt — getting a lower interest rate sounds awfully tempting. However, you need to be realistic about whether you can actually pay off that debt while the low or 0% interest period lasts.
Anything left over at the end of the introductory period will accrue interest at the credit card's ongoing rate — and that rate will almost invariably be much higher than what you're paying on a student loan, auto loan or mortgage. Also take into account the balance transfer fee. Most credit cards charge 3% to 5% of the balance you're transferring, so a $5,000 student loan could cost you $250 right off the bat.
🤓 Nerdy Tip
To help you manage your student debt, contact your lender or servicer about enrolling in an income-driven repayment plan or consider refinancing private debt to get a lower interest rate. Issuers won't let you transfer a balance above your credit limit on the card, and some may have a ceiling on how much you can transfer, which could be lower than your credit limit. If you're new to credit, most likely your credit limit isn't going to be high enough to cover your student loans, or they might exceed the issuer's limit.
For other debts that may exceed the credit line on a new credit card, consider bundling your credit card debt into a personal loan. A personal loan won't have a 0% interest rate, but its rate will be lower than the high interest you're probably paying on your credit cards now. Consolidating your credit card debt in a personal loan will also create a timetable for you to get out of debt.
What’s next?
Balance transfers vs. debt consolidation loans: Which is right for you? Here’s how to tell.
