Balance transfers are a popular strategy for managing high-interest debt, but many people wonder if they can use this approach to help friends or family members struggling with debt. If you’re looking to do this, you’ll first need to explore the possibilities, limitations, and considerations around transferring someone else’s debt to your credit card. 

What is a balance transfer? 

A balance transfer involves moving debt from one credit card (or sometimes other debt types) to another card, typically offering a lower interest rate for a promotional period. This allows borrowers to save on interest payments and potentially pay off their debt faster.  

Okay, so, can you transfer someone else’s debt to your credit card? 

The short answer: Yes, but with important caveats 

Yes, technically you can balance transfer someone else’s debt, but the process isn’t straightforward and comes with significant financial and relationship risks. 

How balance transfers for others work 

There are two primary methods to balance transfer someone else’s debt: 

1. Direct transfer to your account

Some credit card issuers allow you to transfer balances from accounts not in your name. You’ll need to provide: 

• The account number of the other person’s credit card. 
• The name of the creditor. 
• The amount you wish to transfer. 

The credit card company transfers the specified amount to the other person’s account, and that balance becomes your debt. 

2. Balance transfer checks

Some credit card companies provide balance transfer checks that work like regular checks. You can: 

• Write a check to the other person. 
• Have them use that money to pay their debt. 
• The amount becomes your balance transfer debt. 

Important limitations and considerations 

Now that you know how to transfer someone else’s debt, let’s go over a few important things to keep in mind before you do: 

• Issuer restrictions: Not all credit card companies allow transfers from accounts with different names. Major issuers including Chase, Bank of America, and Discover typically require the accounts to be in the same name.
• Credit requirements: Balance transfer offers target customers with good to excellent credit (typically 670+). The transfer amount combined with your existing debt can’t exceed your credit limit.
• Financial risks: Taking on someone else’s debt makes you legally responsible for repayment. If the other person agreed to make payments to you but fails to do so, you remain liable for the full amount.
• Transfer fees: Most balance transfers incur a fee (typically 3-5% of the transferred amount). On a $5,000 transfer, that’s $150-$250 in fees you’ll need to factor into your decision. 

Credit score impact 

A balance transfer can impact your credit score by: 

• Increasing your credit utilization ratio. 
• Adding a hard inquiry to your credit report. 
• Potentially lowering your average account age (if opening a new card). 

Alternatives to balance transfers 

Instead of directly taking on someone else’s debt, consider these alternatives: 

• Become an authorized user: Add the person to your low-interest credit card as an authorized user. They can transfer their balance to the card, though you remain legally responsible for all charges.
• Co-sign on a new card: Help the person qualify for their own balance transfer card by co-signing. You’re still legally responsible if they don’t pay, but the debt appears on both credit reports.
• Provide a personal loan: If you have the financial means, you could loan the person money directly to pay off their high-interest debt, with a formal agreement regarding repayment terms. 

Debt management options 

Instead of taking on the debt yourself, help research and connect them with: 

• Nonprofit credit counseling. 
• Debt management plans. 
• Debt consolidation loans. 
• Hardship programs.