Credit Cards To Balance Transfer Personal Loans

Compare credit cards that allow balance transfers from personal loans and offer 0% interest for 6–24 months to help you save.

Verified by David Boyd   |   Updated 27 May 2024

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Comparing credit cards to balance transfer personal loans

Qantas Premier Platinum Credit Card

On website

Balance transfer

12 months at 0% p.a.

Purchase rate

19.99% p.a. ongoing

Annual fee

$349.00 for 1st year

Highlights

  • Get up to 100,000 bonus Qantas Points. Get 70,000 bonus Qantas Points upon spending $3,000 or more on eligible purchases within 3 months from card approval. Plus, an extra 30,000 bonus points if you haven't earned Qantas Points with a credit card in the past 12 months. Terms and Conditions apply.
  • Benefit from 0% on Balance Transfer for 12 months with no Balance Transfer fee. Returns to Cash Advance rate thereafter. No interest-free days are applicable on retail purchases with an outstanding balance transfer.
  • Benefit from the reduced annual fee of $349 p.a. for the initial year. An ongoing annual fee of $399 p.a. is applicable in the 2nd year.

Pros

  • Earn up to 100,000 bonus Qantas Points when you meet the criteria.
  • 0% p.a. for 12 months on balance transfers.
  • Additional savings with the $349 first-year annual fee.
  • Comes with complimentary travel insurance.

Cons

  • The annual fee increases to $399 p.a. after the initial year.
Citi Premier Qantas Credit Card

Citi Premier Qantas Credit Card

Balance transfer

6 months at 0% p.a.

Purchase rate

21.49% p.a. ongoing

Annual fee

$350.00 p.a. ongoing

Highlights

  • Receive 100,000 bonus Qantas Points when you spend $4,000 on eligible purchases within 90 days from approval. Terms and Conditions apply.
  • Enjoy 0% p.a. for 6 months on balance transfers.
  • $175 annual fee first year and each subsequent year when you spend $48,000 on eligible purchases and cash advances in the previous year, otherwise $350.
Qantas Premier Everyday Credit Card

On website

Balance transfer

12 months at 0% p.a.

Purchase rate

19.99% p.a. ongoing

Annual fee

$99.00 p.a. ongoing

Highlights

  • Receive a potential boost of 8,000 bonus Qantas Points upon successful application. Gain 2 bonus Qantas Points for every $1 spent on qualifying purchases within 4 months post-card approval. Applicable Terms and Conditions.
  • Enjoy a modest annual fee of $99.
  • Benefit from a 0% p.a. rate for 12 months on balance transfers, which then transitions to the Cash Advance Rate.

Pros

  • Earn up to 8,000 bonus Qantas Points when you meet the criteria.
  • The low annual fee of $99 p.a.
  • Earn 0.75 Qantas Points per $1 spent on domestic purchases up to $3,000 per statement period.
  • Comes with complimentary overseas travel insurance.

Cons

  • There is a 3% foreign transaction fee.
Kogan Money Black Credit Card

On website

Balance transfer

6 months at 0% p.a.

Purchase rate

20.99% p.a. ongoing

Annual fee

$0.00 p.a. ongoing

Highlights

  • Receive $300 Kogan.com Credit upon spending $3,000 on qualifying purchases within 90 days from card approval.
  • Enjoy no annual fees.
  • Benefit from 0% p.a. for 6 months on balance transfers with no balance transfer fee. Reverts to cash advance rate of 21.74% p.a.

Pros

  • Get a $300 sign up bonus in Kogan.com Credit when you meet the criteria.
  • $0 annual fee.
  • Earn 2 reward points per $1 on eligible purchases at Kogan.com and 1 reward point per $1 on other eligible purchases.
  • Uncapped rewards.

Cons

  • There is a 3.4% foreign currency fee.
  • The ongoing cash advance rate is 21.74% p.a.

Most credit card users are familiar with consolidating credit card debt by transferring balances to a new card with an introductory interest rate, often zero interest, for six months to two years or more. This is ideal if your debt is all on credit cards. But what if you need breathing space on a personal loan you’re struggling to repay?

Good news: some credit cards allow you to transfer your personal loan balance to a new card.

The balance transfer introductory rate is usually better than the personal loan rate

While personal loan rates are generally lower than regular credit card interest rates, transferring a personal loan to a credit card with an introductory low or zero interest rate on balance transfers can be advantageous. Avoid transferring a personal loan balance without an introductory offer, as you could end up paying a higher interest rate than your current loan.

What’s in it for the card issuer?

Card issuers offer interest-free loans to:

  • Secure new customers who may eventually use the credit card for purchases, earning merchant fees for the bank.
  • Encourage new customers to use the credit card for purchases while having an outstanding balance, thus incurring interest charges.

How to request a balance transfer from a personal loan to a credit card

When you apply for a balance transfer credit card, there will be a section asking for details of the debt you want to transfer. Here, you'll need to provide the following information about your personal loan debt:

  • The name on the account
  • The type of account (i.e. personal loan)
  • The account number
  • The amount of debt you want to transfer
  • The name of the issuing organisation
  • The BPAY biller code and reference number (if available)

If your application is approved, you should receive your new credit card in about 10 working days. Depending on the issuer, you may need to activate the card before the balance transfer process can begin. This could take another 10 working days to complete. Once the transfer is done, you can close your old account and start paying off the debt on your new credit card.

Avoid using your new card for purchases while the balance is unpaid

To maximise benefits, avoid using your new card for purchases until the transferred loan is repaid. This prevents forfeiting any interest-free days normally allowed on purchases, as every purchase will incur interest from the transaction date.

Avoid using your new card for cash advances while the balance is unpaid

Do not use your new card for cash advances, which always attract interest from the transaction date. Repayments will be applied first to the balance incurring the highest interest charges, prolonging the time to repay your loan.

Use the interest holiday to pay off the loan faster

Use the zero-interest period to repay the loan in full. The absence of interest charges allows you to allocate more cash to the principal. Be aware that the revert interest rate after the introductory period can be very high, often as high as 21% p.a.

Debt consolidation

Consider transferring any existing credit card balances along with your personal loan to consolidate all your debts into one manageable, temporarily interest-free account.

Personal loans from the new card issuer’s bank cannot be transferred

You cannot transfer personal loans or credit card balances owed to the bank issuing your new card. For example, you can’t transfer a Citi personal loan to a Citi credit card.

Balance transfer may incur an upfront fee

Consider any upfront balance transfer fees, which can range from 1% to 3% of the amount transferred. This fee will be indicated in the card offer details.

New card application is subject to a review process

Your new card application and balance transfer request will be reviewed by the card issuer. Ensure your personal loan repayments are up to date and that you have a reasonable credit rating.

Help choosing a credit card to balance transfer personal loans

Streamline your finances and save on interest with expert guidance on choosing a credit card for balance transferring personal loans.

  • FAQs

  • Alternatives

Are there any fees associated with transferring a personal loan to a credit card?

Possibly. The balance transfer may incur an upfront transfer fee of between 1% and 3% of the amount being transferred. Also, if you fail to repay the loan before an introductory zero-interest period expires, you may end up paying very steep interest charges. And don’t forget that there’s an annual fee to pay with most credit cards.

Is there any limit to the amount of personal loan balance I can transfer to a new credit card?

Yes. In most cases a transferred balance will not be allowed to exceed a fixed percentage (e.g. 80%) of your credit limit. For example, if you are approved for a credit limit of $10,000, the maximum amount of loan transferable would be $8,000.

What are the eligibility criteria for transferring a personal loan to a credit card?

It varies from card to card. Basically you will need to meet the eligibility criteria for the card itself (e.g. minimum age, minimum income, Australian residency, reasonable credit score). If your application is approved, the credit limit allocated will reflect the bank’s assessment of the size of debt you are able to service and repay, and your balance after transferring the loan needs to fit within this limit.

Can I transfer a personal loan from any bank to my new card?

You cannot transfer a personal loan from the financial institution to which the new card provider belongs. E.g. you can’t transfer a Citi personal loan to a Citi credit card.

Can I transfer a personal loan if it was taken out in someone else’s name, for example my partner’s name?

No. The personal loan, being transferred to a credit card in your name, must have been taken out in your name.

If I’m transferring my loan to a rewards credit card, will I earn rewards points on the transferred amount?

No. None of the card providers accepting personal loan transfers allocate rewards points on the transferred amount.

Which is best, a debt consolidation loan or a personal loan balance transfer?

It depends on your circumstances. The point of balance transferring a personal loan is to take advantage of a card’s zero-interest introductory offer. Provided you are confident you can repay the loan in full during the zero-interest period, you can save heaps by avoiding interest charges altogether.

But if you think there’s a strong chance you may not repay all of the loan in time, you could end up losing everything you have gained by having to pay the revert interest rate (which may be as high as 21% p.a.) on the remaining balance. In this case a low-interest debt consolidation loan, which applies interest from day one, may be a better option.

If I have transferred a personal loan to my new card, can I still use it for purchases?

You can, but it wouldn’t be a wise move, for two reasons.

Firstly, having an unpaid balance transfer means you won’t qualify for interest-free days on purchases. This means you’ll pay interest from each purchase transaction date until the purchase transaction is repaid, at the credit card’s ongoing purchase interest rate.

Secondly, any repayments you make will be allocated first to your new purchases balance, because it attracts a higher interest rate than the 0% on your transferred balance. Only when the purchases balance is cleared will any of your repayment be applied to the transferred balance. This could prolong the time you need to repay your transferred balance, putting you at risk of incurring the high revert interest rate.

Should I apply for the personal loan balance transfer at the same time as applying for the new card?

If your main purpose in applying for the new card is the balance transfer, then yes. You don’t want to incur the expense of a new card (i.e. the annual fee) only to discover that your balance transfer will not be approved. Also, some banks only permit balance transfer applications in conjunction with the new card application, not further down the track.

Can I consolidate all my debts by transferring other card balances as well as a personal loan (or loans)?

Provided the total amount does not exceed your approved credit limit (or the permitted percentage of your approved credit limit) the card provider will usually allow you to consolidate your debt with several individual transfer amounts.

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.

Repay the loan with savings

If you have savings, you could use some of it to pay off the loan faster while keeping some for emergencies and other goals.

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. You can also speak to your lender about hardship options if your circumstances have changed so you can find a manageable way to repay the loan.