Can you use a balance transfer credit card to pay off a personal loan?
While it was possible in the past, there are no credit card companies that let you balance transfer a personal loan debt.
Key takeaways
- It is no longer possible to put a personal loan debt on a balance transfer credit card.
- In the past, a few credit card providers like Coles and Qantas Money allowed this, but they no longer do.
- If you're struggling to pay off a personal loan debt you may benefit from debt consolidation or hardship assistance instead.
Which credit cards allow a personal loan balance transfer?
There are now no credit card providers in Australia that accept personal loan debt on a balance transfer.
Previously, some NAB-backed providers like Coles, Kogan Money, Qantas Money and Virgin Money did accept personal loan debt with their balance transfer credit card offers. But they no longer do.
What is a 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 Australian credit cards only let you transfer a credit card balance, not other debts like personal loans.
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.
- Refinance the loan. Shop around for a personal loan with a lower interest rate or better terms than your current one, and switch. This is the closest equivalent to a balance transfer for loan debt.
- 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.
- Make extra repayments. If your personal loan doesn't charge exit or early repayment fees, putting extra money toward it whenever you can will cut down the total interest paid and shorten the loan term.
- 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.
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Can I transfer my coles card balance to a kogan card or is this like transferring from the same bank as they are both owned by NAB?
Hi Angeliki,
According to the T&Cs from Kogan, most credit cards or loans from other financial institutions are eligible to have balances transferred to a Kogan Money Credit Card, provided that the card details match the BPAY reference number details of the financial institution. Where those details do not match, they are unable to process a balance transfer. There’s no specific mention of other NAB-owned cards being ineligible, but they state they are aware of some financial institutions where card number and BPAY reference number do not match and are therefore not eligible for a Balance Transfer. These include:
Bendigo Bank
ING
Latitude Finance
Great Southern Bank
Heritage Bank
Adelaide Bank
credit unions
AMEX cards
Hope this helps!
Can I do a balance transfer from a Bankwest Credit Card to a Commonwealth Bank Personal Loan?
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
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