How to balance transfer a personal loan

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Name	Purchase rate p.a.	Annual fee	Balance transfer rate p.a.	Amount Saved
Qantas Premier Platinum Qantas Frequent Flyer	Purchase rate p.a. 20.99%	Annual fee $349 first year ($399 after)	Balance transfer rate p.a. 0% for 12 months with 2% balance transfer fee, then 21.99%	Amount saved $478.32 over 12 months	Go to site More Info Compare	Earn up to 80,000 bonus Qantas Points. Plus, save with a reduced first-year annual fee and 0% p.a. for 12 months on balance transfers, with a 2% BT fee.
Kogan Money Card – Exclusive Offer Exclusive Kogan Rewards Program	Purchase rate p.a. 9.99% for 18 months, then 21.99%	Annual fee $0	Balance transfer rate p.a. 0% for 18 months with 1% balance transfer fee, then 22.74%	Amount saved $1,285.99 over 18 months	Go to site More Info Compare	Save with 0% p.a. interest on balance transfers (with a 1% BT fee) and 9.99% p.a. on purchases, both for 18 months, plus, an ongoing $0 annual fee.
Qantas Premier Everyday Qantas Frequent Flyer	Purchase rate p.a. 20.99%	Annual fee $99	Balance transfer rate p.a. 0% for 12 months with 2% balance transfer fee, then 21.99%	Amount saved $728.32 over 12 months	Go to site More Info Compare	Get 2 bonus Qantas Points per $1 spent on eligible purchases in the first 4 months (up to 8,000 points), plus complimentary insurance.
Virgin Money Anytime Rewards Credit Card - Balance Transfer Offer Virgin Money Rewards	Purchase rate p.a. 19.99%	Annual fee $149	Balance transfer rate p.a. 0% for 24 months with 1% balance transfer fee, then 20.99%	Amount saved $1,363.89 over 24 months	Go to site More Info Compare	Save with a 0% balance transfer offer for 24 months (with a one-time 1% BT fee).

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Which credit cards allow a personal loan balance transfer?

A balance transfer is when you move existing credit card debt onto a new card, with a low or 0% interest rate for a limited time. This helps you pay off the debt.

But most Australian credit cards only let you transfer a credit card balance, not other debts like personal loans. But a handful of card providers let you balance transfer personal loan debt to a credit card:

Citi
Coles
Kogan Money
Qantas Money
Virgin Money

⚠️ NAB issues the credit cards for the brands mentioned above, which accept personal loan balance transfers. But NAB's own credit cards don't offer this.

You can't transfer balances between credit cards with the same bank. There may be restrictions if you try to transfer a balance between one of the brands above and another. Check the fine print before you apply for a balance transfer card.

Pros and cons of transferring a personal loan balance to a credit card

Pros

Save money. Balance transfer credit cards give you a chance to save money on interest charges by offering a low or 0% introductory interest rate for up to 28 months. If you had a $3,000 personal loan debt with a 9% interest rate, then paying 0% would be a big saving.
Pay off personal loan debt faster. Paying low or no interest on a balance transfer card means that more of your repayments go directly towards the principal debt (rather than on interest).
Pay off all your debts at once. You may be able to consolidate debt on one credit card so that you only need to make one repayment each month. Plus, you’ll only have to deal with one interest rate for all of your debt.

Cons

Balance transfer limits. Credit cards typically let you transfer between 70% to 100% of your approved credit limit. Depending on the card, you may not be able to transfer your entire loan amount.
Balance transfer fee. Some credit cards have a one-time fee worth around 1% to 3% of the balance transfer.
Higher rates at the end of the introductory period. If you don't pay off the balance during the introductory period, you'll be charged interest on what's left. With some credit cards charging as much as 25% p.a., this could be higher than the rate you have on your personal loan.

Is transferring a personal loan debt to a credit card a good idea?

A balance transfer credit card can help you get your debt under control. But debt consolidation is complicated. It's worth sitting down and crunching the numbers to work out how much you can save.

Work out your costs. How much is your personal loan costing you each month? How much can you save with a balance transfer? Don't forget to factor in the cost of fees.
Take a look at all your debt consolidation options first. There are more debt consolidation options than a credit card.
Make sure you have a plan to pay your card off fast. A 0% balance transfer only works if you actually pay the debt off during the introductory period. Once that ends, any unpaid debt gets charged a very high interest rate. Higher than a personal loan interest rate.
Don't keep your old account open. Once the debt is transferred to your new credit card, make sure you close the personal loan account to avoid any additional fees or charges.
Avoid making purchases on the card while you're paying off the balance. Any new spending you do on your card is not interest free like the balance transfer. Spend carefully and make sure you don't end up paying interest on your new spending while you're also trying to pay off the balance you transferred.

How to request a balance transfer from a personal loan to a credit card

When you apply for your balance transfer credit card, there will be a section asking for details of the debt or debts you want to move on to the card.

Here, you'll need to provide details of the personal loan debt you want to transfer, including the amount, the name on the account, plus the account number.

If your application is approved, you can close your old account and start paying off the debt on your new credit card.

Alternatives to balance transferring a personal loan

If you can't balance transfer a personal loan to a credit card, here are some other solutions that could help pay off the loan faster.

Debt consolidation loans. Even if you're only paying off one balance, comparing loans and other debt consolidation options could help you find a lower interest rate and lower fees than what you're currently paying.
Financial support. If the balance of your personal loan is causing financial stress, you can speak to a financial counsellor for free by calling 1800 007 007 or using the chat service on the National Debt Helpline website.
Talk to your lender. Ask about hardship options if your circumstances have changed, so that you can find a way to repay the loan that's manageable for you.

Frequently asked questions

This depends on how much debt you have and what you're eligible for. Balance transfer credit cards typically allow you to transfer a smaller amount than a debt consolidation loan. But most balance transfer cards also offer an introductory 0% interest rate that can help you save on charges for a set period of time before interest applies.
In comparison, debt consolidation loans typically offer more flexibility in the types of debts you can consolidate and charge an interest rate applied the time the loan is approved. So it's often helpful to consider both options for debt consolidation, then choose the one that's most suited to your situation.
Any balance transfer has the potential to affect your credit score. This is because details from the application will be added to your credit report.
If you have a number of accounts and applications in a short period of time, it could lower your credit score. But if the balance transfer means you're able to make repayments more regularly, and on time, your credit score could improve over time. Check out Finder's guide to credit scores for more details – and to get a free copy of your credit score and report each month.

Thank you for your feedback!

Written by

Amy Bradney-George

Editor

Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio

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Amy has written 565 Finder guides across topics including:

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Co-written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 554 Finder guides across topics including:

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20 Responses

VWOctober 13, 2018

Can I do a balance transfer from a Bankwest Credit Card to a Commonwealth Bank Personal Loan?

Finder

JeniOctober 13, 2018Finder

Hi VW,

Thank you for getting in touch with Finder.

Currently, you are not able to do that. As per Bankwest’s balance transfer T&Cs, you may at any time request them, and they may agree to transfer any debit balance of a credit card, store card, or charge card account held with another Australian financial institution by you or an additional cardholder to the card account.

I hope this helps.

Please feel free to reach out to us if you have any other enquiries.

Thank you and have a wonderful day!

Cheers,
Jeni

JoJune 22, 2017

I applied for a Virgin Flyer Card with balance transfer 18 months interest free to clear a personal loan.

Upon activation and calling to arrange the BT, I was advised by the call centre that they are unable to transfer to a personal loan (even after I supplied the Biller Code and Ref No).

Instead they’re sending me a cheque for the BT amount!

JonathanJune 22, 2017

Hello Jo!

That sounds a surprise for you! But don’t be! :)

Some credit card companies use “convenience checks” that will let you do balance transfer. If you sign and use that check to pay off your loan, the check amount gets drawn from the credit limit you have in your card, then the agreed rates and fees ensue.

You may want to talk with your credit card company to confirm if this is a valid alternative instead of transferring your loan to your card themselves.

Hope this helps.

Cheers,
Jonathan

BenJune 21, 2017

Hi! When applying for a card for balance transfer (24 months interest free), can I specify that it’s for a balance transfer and the amount, such as $20,000 personal loan. Also, can I be notified of the card’s maximum before actually going ahead? Or is it more-so that once I have applied, if they approve it I need to pay the fee for the card and have it regardless of the maximum amount? My fear is that they may give a low maximum when the point of applying might have been to balance transfer close to a $20,000 personal loan figure. Thanks.

JonathanJune 21, 2017

Hi Ben!

Thanks for your inquiry.

Usually, during the application process, it is not necessary for you to declare the purpose why and how much you need when you’re applying for a card. The approval will depend on the bank’s internal criteria and this will determine your credit limit and how much you can transfer (most only allow 80% of your approved limit to ensure you don’t go over).

We understand it concerns you that you might be approved for a card with inadequate credit line and you need to bear with the fees, but take note that whatever balances you successfully transferred and get a 0% offer, would still translate to some savings on your wallet.

Another solution is you might consider talking with your existing lender to give you more friendly repayment plan for your personal loan, that way you don’t need to be concerned about transferring debt.

Hope this helps.

Cheers,
Jonathan

JoanApril 27, 2017

Hi,

Can you please advise if there is any fee charged if you pay off the balance transfer amount prior to the allocated period expires?

Thank you

LiezlApril 28, 2017

Hi Joan,

Thanks for your question.

There is no fee for paying off your bill before the end of the promotional period. It’s ideal to pay off the debt before the end of the introductory period so that you can avoid higher interest charges.

Best regards,
Liezl

MoeJune 1, 2016

Hi,

Once I transfer my personal loan to the credit card with Citibank, would this new credit debt, would it be considered a personal loan or a credit card debt? if it considered a credit card debt, after the 24 months period end, can I balance transfer this remaining amount to another credit card with another bank institution, to still keep going with the balance transfer with no interest?

Finder

MayJune 1, 2016Finder

Hi Moe,

Thanks for your inquiry.

Yes, once you have successfully transferred your personal loans to a balance transfer credit card with Citibank, that debt will be considered as a credit card debt. So if you want to transfer the remaining balance to another credit card from a different card issuer after 24 months, you may do so.

Cheers,
May

Which credit cards let you balance transfer personal loan debt?