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

Rates and Fees verified correct on December 3rd, 2016

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 December 3rd, 2016
$
Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Repayment
HSBC Personal Loan
A competitive fixed interest rate loan with the option to make extra repayments. Min. income $30,000
From 11.99% (fixed) 12.54% $5,000 1 to 5 years $150 Go to site More
Latitude Personal Loans (Unsecured)
An unsecured loan designed for multiple purposes – renovating, buying a car or travelling. Funds can be in your count in as little as 24 hours.
From 13.99% (fixed) 15.2% $3,000 2 to 7 years $250 (Loans under $4000 - $140) Go to site More
CUA Fixed Rate Personal Loan
A competitive fixed-rate loan with flexible repayments that can help you consolidate debt or make a large purchase.
From 11.99% (fixed) 11.99% $1,000 1 to 7 years $0 Go to site More
ANZ Fixed Rate Personal Loan
A flexible loan option that lets you pay off your debt, buy a car, fix up your house or cover travel costs.
From 13.95% (fixed) 14.81% $5,000 1 to 7 years $150 Go to site More
RACQ Unsecured Loan
An unsecured personal loan that lets you borrow funds for what you need. Repay the loan on terms up to seven years.
From 13.95% (fixed) 14.52% $5,000 1 to 7 years $378 Go to site More
SocietyOne Unsecured Personal Loan
Interest rates range from 7.9% p.a. to 24.25% p.a. Comp rate from 9.58% p.a. to 27.99% p.a. depending on your credit score
From 7.9% (fixed) 9.58% $5,000 2 to 5 years 2.5% (of loan amount) Go to site More
MoneyPlace P2P Loan
Interest rates from 8.90% p.a to 17.25% p.a. Comp rates from 8.90% p.a to 19.01% p.a depending on your credit score.
From 8.9% (fixed) 8.9% $5,000 3 to 5 years 0% - 3.75% of loan amount Go to site More
RateSetter Personal Loan
Ratesetter allow you to get a personalised rate based on your credit score.
From 9.42% (fixed) 9.42% $2,001 0.5 to 5 years $0 (fees may be charged) Go to site More
St.George Get Set Loan Personal Loan
A revolving line of credit that lets you access your funds as and when you need to.
From 17% (variable) $5,000 $150 Go to site More
St.George Unsecured Personal Loan - Variable Rate
The Variable Rate Unsecured Personal Loan St.George lets you borrow up to $40,000 for a period of up to 7 years.
From 12.99% (variable) 13.87% $3,000 1 to 7 years $195 ($0 for existing customers) Go to site More

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.

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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 a senior writer for finder.com.au specialising in personal finance. She enjoys reading PDSs so you don’t have to.

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Related Posts

HSBC Personal Loan

A competitive fixed interest rate loan with the option to make extra repayments. Min. income $30,000

Latitude Personal Loan (Secured)

Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.

CUA Variable Rate Personal Loan

Enjoy a competitive interest rate, flexible repayment options and no monthly fees.

SocietyOne Unsecured Personal Loan

Interest rates range from 7.9% p.a. to 24.25% p.a. Comp rate from 9.58% p.a. to 27.99% p.a. depending on your credit score

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