RateCity.com.au
powering smart financial decisions
RateCity.com.au

Find and compare personal loans for credit card debt

Loan amount

$

Loan term

Credit score

Don't know your score? Find it out here.

Show Online Partners Only?

We provide links to our Online Partners. If you click through to an Online Partner, you can get more product information, apply for or purchase the product and RateCity may earn a fee for referring you. This is one of the ways RateCity makes money and how we can offer our comparison service to you for free. See how we make money for more.

Sort by

Default

All filters

Loan amount
$
Loan term
Credit score

Don't know your score? Find it out here.

Loan type
Security type
Features
Specials
Fees
Providers

Type of lender

Online Partner

Show Online Partners Only?

We provide links to our Online Partners. If you click through to an Online Partner, you can get more product information, apply for or purchase the product and RateCity may earn a fee for referring you. This is one of the ways RateCity makes money and how we can offer our comparison service to you for free. See how we make money for more.

Product

Low Rate Personal Loan Unsecured (Good Credit)

Real Time Rating™

3.89

/ 5
Interest Rate

7.49

% p.a

Fixed up to 10.99%

Comparison Rate*

7.84

% p.a

Fixed up to 11.36%

Company
Monthly repayment

$933

36 months

Loan term

1 year to 7 years

Total repayments
Real Time Rating™

3.89

/ 5
Go to site
Total Repayments icon

Total repayments for a 3-year, $30,000 loan at 7.84% would be $33,590*. Terms from 1-7 years

Product

Low Rate Personal Loan Unsecured (Very Good Credit)

Real Time Rating™

3.92

/ 5
Interest Rate

7.29

% p.a

Fixed up to 9.99%

Comparison Rate*

7.64

% p.a

Fixed up to 10.35%

Company
Monthly repayment

$930

36 months

Loan term

1 year to 7 years

Total repayments
Real Time Rating™

3.92

/ 5
Go to site
Total Repayments icon

Total repayments for a 3-year, $30,000 loan at 7.64% would be $33,491*. Terms from 1-7 years

Product

Unsecured Personal Loan - Platinum

Real Time Rating™

3.38

/ 5
Interest Rate

10.70

% p.a

Fixed

Comparison Rate*

11.56

% p.a

Fixed

Company
Monthly repayment

$978

36 months

Loan term

3 years to 7 years

Total repayments
Real Time Rating™

3.38

/ 5
Go to site
Total Repayments icon

Total repayments for a 3-year, $30,000 loan at 11.56% would be $35,205*. Terms from 3-7 years

Product

Unsecured Personal Loan - Gold

Real Time Rating™

2.81

/ 5
Interest Rate

14.20

% p.a

Fixed

Comparison Rate*

15.09

% p.a

Fixed

Company
Monthly repayment

$1k

36 months

Loan term

3 years to 7 years

Total repayments
Real Time Rating™

2.81

/ 5
Go to site
Total Repayments icon

Total repayments for a 3-year, $30,000 loan at 15.09% would be $37,017*. Terms from 3-7 years

Embed

Personal loan lenders we compare at RateCity

Learn more about personal loans

istock_79305201_small5

According to ASIC’s credit card debt clock, Australian’s currently owe around $32 billion in credit card debt. This equates to around $4,200 per card holder, meaning that if you currently have a large credit card debt you’re not alone. 

Falling into credit card debt is an unfortunate reality for many Aussies, and consolidating your credit card debt into a personal loan is one way struggling borrowers try to get through a difficult financial situation.

Personal loans for credit card debt, or debt consolidation loans, offer borrowers a range of benefits, including:

  • Personal loans may have lower interest rates than credit cards;
  • Personal loans offer borrowers a fixed term, meaning that unlike credit card debt which can take decades to pay off with minimum repayments, you’ll actually have paid back the debt over that chosen fixed term;
  • If you have multiple credit card debts, a debt consolidation loan will simplify your repayments as you’ll only have one debt with one interest rate to pay; and
  • You can avoid paying multiple credit card fees if your debt is across multiple accounts. 

Can I get a personal loan for credit card debt?

Short answer - yes they are available, but your approval depends on your credit history and reliability as a borrower. 

There are a range of best practices for overcoming debt, however, if you already have a less than average credit score you may not be approved for a personal loan to begin with. This will only negatively impact your credit history further, even if you’re hunting for a bad credit debt consolidation loan. 

Before seek out a personal loan for debt consolidation it may be wise to seek financial counselling first. You will be able to work out an appropriate debt consolidation plan that may better suit your financial needs. Also, you can always reach out to your credit card provider to discuss a financial hardship plan while you get back on your feet.   

How do you consolidate your credit card debt using a personal loan?

istock_79305201_small5

  1. Work out how much you owe on your credit card

Before you apply for a debt consolidation personal loan, you should review your statements and calculate exactly how much you owe in credit card debt, what interest rate(s) you are paying and what extra costs may come around such as annual fees. 

  1. Utilise debt consolidation loan comparison tools

RateCity.com.au allows you to search and compare personal loans for credit card debt through debt consolidation loan comparison tools. You’re also able to filter your searches based on loan amount, fixed term length, whether the lender caters to borrowers low credit scores and more, to find loan options tailored to your situation. 

As there are no interest free debt consolidation loans, you’ll need to make sure you’re choosing a product with the most competitive rate, features and fees for your financial needs.  

  1. Look at your budget

Assess your income, expenses and work out how much you can afford to repay each month. Then, using this figure as a guide, utilise debt consolidation loans calculators to find an appropriate personal loan for your financial needs and budget.

  1. Research and prepare

To avoid hurting your credit score you’ll need to reduce the number of loan applications you make. Ensure you’ve prepared all relevant documents and you’ve chosen a competitive lender for your financial situation to avoid being rejected for your loan. You can also read our personal loan guide for more information. 

What are the best credit card debt consolidation loans in Australia?

While there is no one best credit card debt consolidation loan in Australia, there are ways to determine which debt consolidation loan would best suit your specific financial needs and budget. 

When looking for the best credit card debt consolidation loan for you, it’s important you consider the following:

  1. What is the debt consolidation loan interest rate and how does it compare to your current credit card interest rate;
  2. What fees and charges are involved (break costs, monthly fees etc.); and
  3. What loan features are offered (fee free extra repayments, secured loan etc).

Frequently asked questions

What are the pros and cons of debt consolidation?

In some instances, debt consolidation can help borrowers reduce their repayments or simplify them. For example, someone might take out a $7,000 personal loan at an interest rate of 8 per cent so they can repay an existing $4,000 personal loan at 10 per cent and a $3,000 credit card loan at 20 per cent.

However, debt consolidation can backfire if the borrower spends the extra money instead of using it to repay the new loan.

Does refinancing a personal loan hurt your credit score?

Personal loan refinancing means taking out a new loan with more desirable terms in order to access a more competitive interest rate, longer loan term, better features, or even to consolidate debts.

In some situations, refinancing a personal loan can improve your credit score, while in others, it may have a negative impact. If you refinance multiple loans by consolidating these into one loan, it could improve your credit score as you’ll have only one outstanding debt liability. Your credit may also improve if you consistently pay the instalments on time.

However, applying to refinance with multiple lenders could negatively affect your credit if your applications are rejected. Also, if you delay or default the repayment, your credit score reduces.

Are there alternatives to $2000 loans?

If you need to borrow $2000 or less, alternatives to getting a personal loan or payday loan include using a credit card or the redraw facility of your home, car or personal loan.

Before you borrow $2000 on a credit card, remember that interest will continue being charged on what you owe until you clear your credit card balance. To minimise your interest, consider prioritising paying off your credit card.

Before you draw down $2000 in extra repayments from your home, car or personal loan using a redraw facility, note that fees and charges may apply, and drawing money from your loan may mean your loan will take longer to repay, costing you more in total interest.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

What is a bad credit personal loan?

A bad credit personal loan is a personal loan designed for somebody with a bad credit history. This type of personal loan has higher interest rates than regular personal loans as well as higher fees.

How do I consolidate my debt if I have bad credit?

The worse your credit history, the harder you will find it to consolidate your debts, because lenders will be less willing to lend you money and will charge you higher interest rates.

However, people with bad credit histories can make debt consolidation work by following this three-step process:

  1. First, find a lender willing to give you a bad credit personal loan. This process will be simplified if you go through a finance broker or use a comparison website like RateCity.
  2. Second, make sure the interest repayments on your new loan are less than the repayments on the loans being replaced.
  3. Third, instead of spending those savings, use them to pay off the new loan.

How much can you borrow with a bad credit personal loan?

Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans, they also get loaned less money. Each lender has its own policies and loan limits, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.

Is a personal loan a variable or fixed-rate loan?

Depending on the personal loan lender, you may be able to choose between a fixed and a variable interest rate. But, there are a few distinct differences between the two, so it’s important to weigh up the pros and cons before deciding on what’s right for you.

A fixed interest rate loan gets you the convenience of knowing exactly how much you need to repay each fortnight or month. On the other hand, you generally won’t be able to make lump sum or advanced payments to close your personal loan early - or at least not without a penalty.

With a variable interest rate personal loan, you may be able to get a longer loan repayment term, with the option of paying off the loan early. You typically won’t need to pay any additional charges for an early full repayment either. The potential disadvantage with an interest rate that can change is that your repayment is not entirely predictable, as it can fluctuate with the market. However, you’ll likely have more options as more lenders offer a variable interest rate personal loan.

Can I merge my personal loan with my home loan?

Yes, you can refinance your home loan and, in the process, merge or consolidate your personal loan and home loan. By doing so, you can lower the number of debts you have, and you may also reduce the total interest you have to pay.

However, you should consult a financial advisor or a mortgage broker to confirm that you are decreasing your total outstanding debt, including interest payments. The repayment term for a home loan can be much longer than that for a personal loan, and by merging the two, you could be repaying a higher amount over the full term.

Can you get an emergency loan on Centrelink?

When many lenders assess a borrower’s income to determine whether they can afford a loan’s repayments without ending up in financial stress, they may not count Centrelink payments as income for this purpose.

Before applying for an emergency loan, it may be worth contacting a potential lender to find out if they accept applications from borrowers on Centrelink.

Is it hard to improve your credit score?

It can be hard to improve your credit score, as it usually requires sacrifice and discipline, but hard doesn’t necessarily mean complicated. Some simple ways you can give your credit score a boost include closing extra credit cards, reducing your credit card limit, pay off any loans and make loan repayments on time.

As a general rule, the lower your credit score, the more remedies you can apply and the greater the scope for improvement.

Can I get a $2000 loan on Centrelink?

If more than half of your income comes from Centrelink benefits, it may be more difficult to have a $2000 loan application approved. Many lenders will check if you can afford a loan’s repayments on the income from your job before they’ll approve an application, and many won’t count Centrelink payments when assessing your income for this purpose.

Some lenders may offer $2000 loans to borrowers on Centrelink – consider contacting potential lenders to check before applying.

How long are $3000 loans?

Medium amount loans can be repaid between 16 days and 2 years. Many personal loans have terms between 1 year and 5 years, though some are as short as 6 months while others last for 10 years.

Generally, the shorter a loan’s term, the more expensive your regular repayments may be, but the less total interest you’ll pay. Loans with longer terms mean more affordable repayments, but more interest charges over the full term.

Do $4000 loans have no credit checks?

Many medium amount loans for $4000 have no credit checks and are instead assessed based on your current ability to repay the loan, rather than by looking at your credit history. While these loans can appear attractive to bad credit borrowers, it’s important to remember that they often have high fees and can be costlier than other options.

Personal loans for $4000 are more likely to have longer loan terms and will require a credit check as part of the application process. Bad credit borrowers may see their $4000 loan applications declined or have to pay higher interest rates than good credit borrowers.

Should I get a fixed or variable personal loan?

Fixed personal loans keep your interest rate the same for the full loan term, while interest rates on variable personal loans may be raised or lowered during your loan term.

A fixed rate personal loan keeps your repayments consistent, which can help keep your budgeting consistent. You won't have to worry about higher repayments if your rates were to rise. However, on a fixed loan you’ll also potentially miss out on more affordable repayments if variable rates were to fall.

What can I use a bad credit personal loan for?

Generally, bad credit personal loans can be used for the following purposes:

  • Debt consolidation
  • Paying bills
  • Buying vehicles
  • Moving expenses
  • Holidays
  • Weddings
  • Education

Some lenders restrict how their bad credit personal loans can be used as part of their commitment to responsible lending – be sure to check before applying.

What documentation is needed for a self-employed personal loan?

Personal loans may require a borrower to provide proof of identity, proof of residence, details of any other outstanding loans (including credit cards), details of assets they own (e.g. savings, car, property), and proof of income.

While borrowers in full-time or part-time employment can often provide payslips and similar documents to prove their income, self-employed borrowers may need to provide other documents, such as bank statements or tax returns, to demonstrate that their income can cover a loan’s repayments.

How can I improve my credit rating/score?

Your credit score will improve if you demonstrate that you’ve become more credit-worthy. You can do that by minimising loan applications, clearing up defaults and paying bills on time.

Another tip is to get the one free credit report you’re entitled to each year – that way, you’ll be able to identify and fix any errors.

If you want to fix an error, the first thing you should do is speak with the credit reporting body, which may take care of the problem or contact credit providers on your behalf.

The next step would be to contact your credit provider. If that doesn’t work, you can refer the matter to the credit provider’s independent dispute resolution scheme, which would be the Australian Financial Complaints Authority (AFCA).

AFCA provides consumers and small businesses with fair, free and independent dispute resolution for financial complaints.

If that doesn’t work, your final options are to contact the Privacy Commissioner and then the Office of the Information Commissioner.

Can I get a personal loan if I receive Centrelink payments?

It is hard, but not impossible, to qualify for a personal loan if you receive Centrelink payments.

Some lenders won’t lend money to people who are on welfare. However, other lenders will simply consider Centrelink payments as another factor to weigh up when they assess a person’s capacity to repay a loan. You should check with any prospective lender about their criteria before making a personal loan application.

How do I find out my credit rating/score?

You're entitled to one free credit report per year from credit reporting bodies like Equifax, Dun & Bradstreet, Experian and the Tasmanian Collection Service. You can also get a free report if you’ve been refused credit in the past 90 days.

Credit reporting bodies have up to 10 days to provide reports. If you want to access your report sooner, you’ll probably have to pay.