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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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 a credit card. You can compare the best deals for you on on the comparison table of credit cards that let you balance transfer a personal loan.
You can press the “Go to Site” button of your preferred credit card to proceed with your application. You can also contact the provider if you have specific questions. A gentle reminder, please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.
Cheers,
Jonathan