Compare credit cards that accept balance transfers from personal loans and save with low or 0% interest during the introductory period.
Compare cards that let you transfer a personal loan to a credit card
Citi Credit Card Offer
Earn reward points from the Citi Rewards Platinum Credit Card and a low interest rate of 0% p.a. for 24 months on balance transfers.
- $49 p.a. annual fee for the first year ($149 p.a. thereafter)
- 20.99% p.a. on purchases
- 0% p.a. for 24 months with 1.5% balance transfer fee on balance transfers
- Cash Advance Rate of 21.74% p.a.
- Up to 55 days interest free
- Minimum Income Requirement of $35,000 p.a.
Virgin Money Credit Card offer
The Virgin Australia Velocity Flyer Card offers a low interest rate on balance transfers and bonus Velocity Points in the first three months on purchases for a limited time.
- $64 p.a. annual fee for the first year ($129 p.a. thereafter)
- 20.74% p.a. on purchases
- 0% p.a. for 18 months on balance transfers
- Cash Advance Rate of 20.99% p.a.
- Up to 44 days interest free
- Minimum Income Requirement of $35,000 p.a.
What are the benefits of transferring a personal loan balance to a credit card?
- 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.
- Pay off your 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 your debt and interest charges). This gives you a chance to pay off your debt in a shorter amount of time.
- Longer balance transfer offers. Balance transfer credit cards offer introductory interest rates for up to 24 months. Depending on the amount of debt you owe, and the repayments you can afford to make, you may even be able to pay off your personal loan debt before this period ends, avoiding higher interest charges in the process.
- Pay off all your debts at once. If you’re dealing with several debts, you may be able to consolidate them onto 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.
How can I make sure I'm eligible to transfer my personal loan to a credit card?
There are key criteria you need to meet to balance transfer your personal loan to a credit card. These requirements can vary between cards, but generally include the following:
- Meet the credit card application criteria. You’ll need to meet the eligibility criteria for the specific credit card you’re applying for, including the minimum age, residency status, credit score requirements, as well as the minimum income requirement.
- Transfer from an eligible bank. You are only eligible to balance transfer existing debts if they are from a different Australian financial institution to the one you’re applying with. For example, you can’t transfer a Citi personal loan debt to a Citi credit card. The debt you transfer must also be in the name of the primary account holder for the new credit card.
- Ensure your debt meets the balance transfer limit. There may be minimum and maximum limits for your balance transfer. For example, both Citi and Virgin Money state that you must balance transfer at least $500 per request, and you can transfer up to 80% of your credit limit. This means if you were approved for a Citi or Virgin Money credit card with a $10,000 limit, you could balance transfer up to $8,000 to the account.
How to apply for a personal loan balance transfer with Citi
Citi allows you to balance transfer debt(s) from credit cards, store cards, lines of credit and personal loans to a new Citi credit card. If you meet the eligibility requirements, you can transfer your personal loan balance to a Citi credit card by following these steps:
- Find your card. Compare a range of Citi credit cards and choose the one that suits your needs.
- Apply. Click “Go to site” on this page to be taken to a secure online application page.
- Fill out the application. You will also need to provide the details of your balance transfer request and the following details:
- The name the account is held in
- The type of card or account (i.e. personal loan)
- The account number
- The amount of debt you're transferring
- The name of the issuing organisation
- The Biller Code and Reference Number
- Submit your application. If you’re approved, you will be issued with your new credit card within 10 working days.
- Activate. Activate the card so that Citi can begin the balance transfer process. This could take another 10 working days.
- Confirmation. Wait for confirmation of the completed balance transfer, then close the personal loan account, making sure you pay any fees that may be applied for paying out the debt or ending the loan term early. These costs will depend on the personal loan you’ve chosen, so make sure you check the Product Disclosure Statement and factor in any additional charges before you go ahead with this process.
- Repay. Start making payments to your Citi credit card. If possible, aim to pay off the debt before the end of the introductory period so that you can avoid higher interest charges.
How to apply for a personal loan balance transfer with Virgin Money
Virgin Money also allows you to balance transfer debt(s) from personal loans, lines of credit, credit cards and most store cards when you apply for a new Virgin credit card. You can apply for a personal loan balance transfer to a Virgin Money credit card using the following steps:
- Find your card. Compare Virgin Money credit cards and choose the one that suits your needs.
- Apply. Apply online and include details of your personal loan account and the amount of debt you want to transfer to the card.
- Submit your application. If approved, your new card will be issued within 10 working days.
- Activate the card. Virgin Money will then complete the balance transfer process. Once this has been complete, make sure you contact your previous provider to close your personal loan account.
- Repay. Start making payments on your new Virgin Money credit card. If you want to repay your entire debt before the promotional period, make sure you're paying more than the minimum repayment each statement period.
What should I be wary of when transferring my debt?
- The revert rate. At the end of the introductory period, the low promotional interest rate for balance transfers will revert to a standard variable rate. Both Citi and Virgin Money apply the standard cash advance rate of interest to balances remaining after the introductory period. Check specific cards for more details and aim to pay off your balance before this rate applies.
- Making purchases during a balance transfer offer. If you use your new balance transfer credit card to make purchases, the standard purchase rate will apply to those charges, and any repayments you make will be allocated to these debts before your balance transfer debt. If that happens, you could end up carrying the balance until after the introductory period ends, so try to focus on paying off your existing debt before using your card for spending.
- Balance transfer fees. Some Citi and Virgin Money credit cards charge a one-off fee for processing balance transfers. This fee may depend on the balance transfer offer and the card. For example, the Citi Rewards Platinum card applies a 1.5% balance transfer fee while the Virgin Money No Annual Fee card charges a 3% balance transfer fee.
- Know who you can balance transfer to. You can’t transfer a Citi debt to a Citi credit card and you can’t transfer a Virgin Money debt to a Virgin credit card. Both Citi and Virgin Money also require a minimum of $500 per balance transfer request and allow you to transfer up to 80% of your credit limit.
With competitive low or 0% introductory interest rate offers, balance transfer credit cards give you an opportunity to save money on interest charges and pay down existing debt faster. Now that you know which credit cards allow you to balance transfer personal loan debts, you can compare a range of options and find one that suits your needs.
Pictures: Shutterstock
Frequently asked questions about balance transferring a personal loan to a credit card
Is there a limit to how much I can transfer?
Yes. Both Citi and Virgin Money allow you to transfer up to 80% of your approved credit limit. For example, if you had a personal loan debt of $8,000, you would need to get a $10,000 credit limit to balance transfer the full amount. On the flipside, you must balance transfer at least $500 when you apply for a Citi or Virgin Money balance transfer offer.
I want to consolidate my debts. Is it better to use a debt consolidation loan or a balance transfer credit card?
The type of account you use for debt consolidation depends on your individual circumstances. However, you may want to note that debt consolidation loans generally provide a fixed interest rate that is applied from the time the loan is approved. Balance transfer credit cards, on the other hand, provide a low or 0% introductory interest rate before standard rates are applied, which can give you an interest-free period. Consider comparing a range of loan and credit card options to find one that suits your personal circumstances.
Does the promotional rate end if I miss making a repayment?
No. If you miss a repayment you will be charged the late payment fee. Your promotional rate will continue to run until its expiration date.
If I transfer my personal loan to a credit card, would the debt be considered a personal loan debt or a credit card debt?
If you successfully balance transfer your personal loan to a credit card, that debt will be considered as a credit card debt.
Pictures: Shutterstock
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!
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
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.
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
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
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
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?
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
I have a personal loan and credit card with ANZ. Is it possible to do a balance transfer to Citibank or Virgin?
Hi Mibbies, thanks for your inquiry!
Yes, you can. It would be best to contact Citibank or Virgin before you apply for the balance transfer so you can discuss your options and chances of approval. Make sure to read the eligibility criteria and requirements as well before applying.
Cheers,
May
I have a personal loan with Citi, can I do a balance transfer to a Virgin card?
Hi Katie,
Thanks for your question.
Generally, with Citi and Virgin, you are allowed to balance transfer a personal loan to a credit card.
However, you may wish to speak directly with Virgin, to confirm if you are able to transfer a Citi balance over to a Virgin credit card.
I’ve emailed you the link of their contact information for your convenience.
Cheers,
Ysa
Can I use this balance transfer option to pay off an existing car loan?
Hi Lee,
Thanks for your question.
Whether you can balance transfer a personal loan on to a credit card will depend on the card.
Did you have a particular card in mind? If so, we could do some research and confirm that for you.
Cheers,
Sally
Hello, I have a $210k home loan through commonwealth bank at which i pay a normal home loan interest rate of 4.9%. I am wondering there is a way i can balance transfer from a credit card into a home loan offset account for 18 months? Any ideas and suggestions would be great.
Hi Dan, thanks for your inquiry!
Unfortunately balance transferring to offset accounts are not possible since you can only deposit funds in this type of account. You may like to compare balance transfer credit cards if you are looking to consolidate your debt.
Cheers,
Jonathan
What is the best deal to do balance tranfer on a personal loan plus existing card with minimum annual fee, 0% interest?
Hi Hon, thanks for your inquiry!
Citibank and Virgin Money are the only providers to allow balance transfers from a personal loan to credit card. You can compare the best deals for you on this page on the comparison tables we have provided.
Cheers,
Jonathan