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How do I consolidate my credit card to a personal loan?

Rates and fees last updated on

Transferring your credit card balance can save you thousands in interest. Find out what's involved and compare your options.

Credit cards offer you a convenient way to spend, but they can leave you with a hefty bill at the end of the month. If you're looking for a way to get control of your credit card debt, a personal loan is an option to consider.

Why should you consider consolidating your credit card debt to a personal loan?

Here are the main benefits to keep in mind:

  • Reduce the interest you're paying. Interest rates differ, but personal loan interest rates are typically lower than credit card interest rates.
  • Have a fixed repayment period. Credit cards are ongoing lines of credit, while personal loans give you a fixed date to repay your debt.
  • Access finance for other purposes. You can also use the personal loan to make other large purchases or to finance any other purpose you need.

Unsecured personal loans that could help you consolidate

Rates last updated October 20th, 2017
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Monthly Service Fee Application Fee Monthly Repayment Product Description
Citi Personal Loan Plus
From 9.99% (variable)
10.95%
$5,000
3 to 5 years
$10
$199
Borrow up to $75,000 to use for a range of purposes. Competitive rate of 9.99% p.a. available to all approved applicants.
SocietyOne Unsecured Personal Loan
From 7.5% (fixed)
9.51%
$5,000
2 to 5 years
$0
3% (of loan amount)
Based on your risk profile, you will receive a tailored rate between 7.5% and 20.14% with a SocietyOne personal loan.
DirectMoney Unsecured Personal Loan
From 8.5% (fixed)
9.36%
$5,000
3 to 5 years
$0
$595
This unsecured loan features tiers of interest rates from 8.5% p.a. to 19.95% p.a. based on your credit history.
RateSetter 2-Year Personal Loan
From 4.69% (variable)
7.11%
$2,001
2 years
$0
$0 (Upfront fee $250 for loan terms of 2 years and above)
This peer-to-peer loan is only available for a 2-year term at the rate of 4.69% p.a.
RateSetter Personal Loan
From 8.66% (fixed)
9.17%
$2,001
0.5 to 5 years
$0
$0 (Upfront fee $250 for loan terms of 2 years and above)
RateSetter offers personalised interest rates ranging from 3.7% p.a. to 9.6%.p.a. determined by your risk profile.
Pepper Money Unsecured Fixed Rate Personal Loan
From 9.99% (fixed)
9.99%
$5,000
1 to 7 years
$0
$0
Apply for up to $50,000 and receive conditional approval within minutes.
Bank Australia Lifestyle Personal Loan
From 11.89% (variable)
12.94%
$1,000
1 to 10 years
$0
$150
A competitive variable rate loan that gives you ten years to repay.
Westpac Unsecured Personal Loan
From 12.99% (fixed)
14.14%
$4,000
1 to 7 years
$12
$0 (On new loan applications before 7th December 2017)
Borrow up to $50,000 for a term of up to 7 years with the unsecured Loan from Westpac
NOW FINANCE Personal Loans
From 8.95% (fixed)
10.42%
$4,000
1.5 to 7 years
$13
$395 (Based on $10,000)
Get rewarded with a low interest rate for your good credit history. Rates from 8.95% p.a. to 16.95% p.a. depending on your credit score.
RACQ Unsecured Personal Loan
From 12.95% (variable)
13.25%
$3,000
5 years
$0
$200
Apply for up to $30,000 to use for a variety of purposes end enjoy no penalty for early repayment. Note: You must be a QLD resident to apply.
St.George Unsecured Personal Loan - Fixed Rate
From 12.99% (fixed)
14.06%
$2,000
1 to 5 years
$12
$195
Convenient redraw facility, flexible personal loan repayment options with competitive interest rate.
Latitude Personal Loans (Unsecured)
From 13.99% (fixed)
15.19%
$3,000
2 to 7 years
$13
$250 (Loans under $4000 - $140)
An unsecured loan designed for multiple purposes – renovating, buying a car or travelling. Funds can be in your account in as little as 24 hours.
Bank of Melbourne Unsecured Fixed Rate Personal Loan
From 12.99% (fixed)
14.06%
$3,000
1 to 5 years
$12
$195
Apply for a loan from $3,000 and lock in a competitive fixed rate for up to five years.
BankSA Unsecured Fixed Rate Personal Loan
From 14.06% (fixed)
14.06%
$3,000
1 to 5 years
$12
$195
Take advantage of a competitive fixed rate and no application fee for a limited time.

Compare up to 4 providers

How to compare your personal loan options

If you're considering a credit card consolidation loan, you have a few options available. Here's what to keep in mind when you're comparing:

  • What is the interest rate?
    You need to check how competitive the rate is and whether it's fixed or variable. A fixed rate means your repayments will remain the same for the duration of the loan, while a variable rate may fluctuate.
  • What fees will I be charged?
    Look out for upfront fees, such as establishment fees, and ongoing fees, such as monthly or annual fees. Other fees should also be checked, such as late or missed repayment fees or redraw fees.
  • How much can I borrow?
    Ensure the loan amounts on offer will be sufficient to cover your credit card debt. Unsecured personal loans typically offer between $5,000 and $80,000, but some offer lower and higher amounts. Keep in mind that you will need to meet the lender's criteria if you want to be approved for a higher amount.
  • Am I eligible?
    The minimum eligibility criteria will be listed on the finder.com.au review pages. Once you click "Go to Site", you can also confirm these criteria before submitting your application. It's only worth comparing loans that you are eligible for. Remember that meeting the minimum criteria does not guarantee you will be approved; each application is judged on a case-by-case basis and your approval depends on your ability to afford the loan repayments.

debt relief holding hands

Consolidating your credit card debt: Personal loan vs balance transfer

There are a few different ways you can pay down credit card debt. You could continue making repayments on your current credit card or you could apply for a new product to save interest, such as a personal loan or a balance transfer credit card. We compare the two latter options below to help you decide.

Personal loan

  • Have a set repayment period to pay off your entire debt
  • Enjoy a low interest rate
  • Personal loans may come with more upfront fees than credit cards
  • Your interest rate will be higher than on a balance transfer credit card

Balance transfer credit card

  • Have a promotional period where you will pay 0% p.a. interest
  • Credit cards can offer rewards points, no annual fees and other perks
  • If you don't pay off the balance in the promotional period, the revert rate will likely be over 20% p.a.
  • Balance transfer restrictions may apply. For example, you may not be able to transfer more than 80% of your credit limit on some cards.

What to keep in mind before you transfer your credit card debt

Applying for any form of credit is not a decision that should be taken lightly. Make sure you've compared all of your personal loan options so you are applying for the loan that best meets your needs. You can use a personal loan calculator to get an idea of what your repayments will be and see if it will be manageable on your budget.


Consolidating your credit card debt can save you money, but you should only apply after comparing your options and deciding it's the right debt management option for you to take on.

Elizabeth Barry

Elizabeth is an editor for finder.com.au specialising in personal finance and fintech. She enjoys reading PDSs so you don’t have to.

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Related Posts

SocietyOne Unsecured Personal Loan

Based on your risk profile, you will receive a tailored rate between 7.5% and 20.14% with a SocietyOne personal loan.

Westpac Unsecured Personal Loan

Borrow up to $50,000 for a term of up to 7 years with the unsecured Loan from Westpac

Citi Personal Loan Plus

Borrow up to $75,000 to use for a range of purposes. Competitive rate of 9.99% p.a. available to all approved applicants.

Latitude Personal Loans (Unsecured)

An unsecured loan designed for multiple purposes – renovating, buying a car or travelling. Funds can be in your account in as little as 24 hours.

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