Personal Loan on Credit Card? Discover Fast Approval (2026)

Are you juggling multiple debts or need a little extra cash for an unexpected expense? You might be wondering if you can get a personal loan on your credit card, and you're not alone. Many Australians find themselves in similar situations, seeking flexible financial options to manage their cash flow more effectively. Let's dive into how you can leverage your credit card to secure a personal loan, and what you need to consider before making this decision.

Understanding Personal Loans and Credit Cards

Personal loans and credit cards are both forms of credit that can help you manage expenses, but they work in different ways. A personal loan provides you with a lump sum of money that you repay over a fixed term with regular instalments. In contrast, a credit card gives you a revolving line of credit, allowing you to borrow up to a certain limit and pay off the balance over time.

In 2026, the average interest rate for personal loans in Australia ranges from 6.49% to 12%, depending on your credit score and financial situation. Credit cards, on the other hand, often have higher interest rates, typically between 14% and 20%. Understanding these differences is crucial when considering whether to use your credit card as a means to secure a personal loan.

Rates, Requirements, and Options

Before applying for a personal loan through your credit card, it's essential to understand the rates and requirements involved. Here's a breakdown of what you need to know:

Option	Interest Rate	Requirements
Personal Loan	6.49% - 12%	Good credit score, proof of income
Credit Card Cash Advance	14% - 20%	Available credit limit, higher fees
Balance Transfer	0% - 5% (introductory)	Existing credit card debt, promotional offer

When considering these options, keep in mind that credit card cash advances typically come with higher fees and interest rates, making them a less favourable option for long-term borrowing. However, balance transfers can be advantageous if you have existing credit card debt and can find a card with a low or zero introductory rate.

How to Secure a Personal Loan through Your Credit Card

If you've decided that using your credit card for a personal loan is the right choice, follow these steps to ensure a smooth process:

1. Assess Your Financial Situation: Review your current debts, income, and expenses to determine how much you can afford to borrow and repay.
2. Check Your Credit Limit: Ensure your credit card has sufficient available credit to cover the loan amount you need.
3. Explore Balance Transfer Offers: Look for credit cards offering low or zero-interest balance transfers that can act as a personal loan.
4. Apply for a Cash Advance: If necessary, request a cash advance from your credit card issuer. Be aware of the fees and higher interest rates involved.
5. Consider a Personal Loan: Compare personal loan options through a mortgage broker like Esteb and Co, who have access to 83+ lenders. This may provide a more favourable rate than using a credit card.
6. Repay Promptly: Make regular repayments to reduce interest costs and improve your credit score.

Tips and Considerations

Here are some expert tips to consider when using your credit card for a personal loan:

• Understand the Costs: Be aware of any fees associated with cash advances or balance transfers and factor these into your repayment plan.
• Maintain a Good Credit Score: Timely repayments will help improve your credit score, making future borrowing cheaper and more accessible.
• Explore All Options: Consider consulting with Esteb and Co for tailored advice and access to a wide range of lenders, ensuring you get the best rates.
• Avoid Long-Term Credit Card Debt: High-interest rates on credit cards can quickly accumulate, so aim to pay off any balances as soon as possible.
• Use a Budgeting Tool: Track your spending and repayments to stay on top of your finances and avoid slipping into unmanageable debt.

Frequently Asked Questions

1. Can I use a credit card for a personal loan?
   Yes, you can use a credit card for a personal loan through cash advances or balance transfers, but be mindful of the higher interest rates and fees.
2. What are the advantages of a personal loan over a credit card?
   Personal loans typically offer lower interest rates and fixed repayment terms, making them a more predictable and cost-effective option for many borrowers.
3. Is it cheaper to use a balance transfer or a personal loan?
   Balance transfers can be cheaper if you qualify for a low or zero-interest introductory rate, but personal loans may offer better long-term rates.
4. How does a cash advance work?
   A cash advance lets you borrow cash using your credit card, but it comes with high fees and interest rates, making it a less favourable option.
5. What should I consider before using my credit card for a loan?
   Consider the interest rates, fees, your ability to repay, and explore other loan options through a broker like Esteb and Co.
6. Can balance transfers affect my credit score?
   Balance transfers can impact your credit score depending on how you manage them. Timely repayments can improve your score, while missed payments can harm it.
7. Why should I consult a mortgage broker for personal loans?
   A mortgage broker like Esteb and Co can provide access to a wide range of lenders and loan products, helping you find the best rates and terms for your needs.