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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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