Credit Card Refinance: Your How-to Guide
Feeling stuck with your credit card debt and too embarrassed to even look for options? You’re not alone—and there are other options. One of them is refinancing. Keep reading—we’ll break down how credit card refinance works, what your choices are, and howCredit24 can help.
What is credit card refinance?
Refinancing a credit card usually means reshaping your current credit card debt by moving it to a new credit product with better terms. This way, you're reorganising what you already owe to make it easier to manage—or cheaper to pay off.
This typically includes:
Transferring your debt – you get a new credit card with a lower interest rate (this is called a balance transfer)
A promotional interest-free period – gives you time to repay without new charges piling on
Keeping the revolving nature of the credit – so you can still use the card, though that's not always recommended if you're trying to reduce debt
Staying focused on credit card debt only – this way, you're not combining other types of loans
With credit card refinance you're not eliminating the debt, you're reshaping it in a way that could reduce the financial pressure, if you manage it well.
Credit card refinance vs debt consolidation
Lines between refinancing and debt consolidation often get blurred, but they're not quite the same.
Credit card refinance is especially focused on reshaping your credit card debt. You usually move the balance to a new credit product, like a card with a better rate or promotional terms. It's still revolving credit, meaning you can borrow again as you repay.
Debt consolidation, on the other hand, is a bigger move. It means merging multiple debts, like credit cards, personal loans, and store cards, into one bigger loan. Instead of juggling different payments, you make just one. Instead of revolving credit, you can move to instalment-based repayments with a precise end date.
Here's how debt consolidation usually works:
You convert multiple debts into one new loan
The new loan often has a fixed interest rate and term
You repay in regular monthly instalments
There's a defined payoff date
It may involve secured terms (like using your car or home as collateral)
Although both options work differently, they’re designed to do the same thing: simplify your debt and make it more manageable.
How to refinance credit card debt
You can choose from several ways to restructure your credit card debt. The best method depends on your goals—whether that’s lowering interest, simplifying repayments, or creating a clearer payoff plan.
Here are the most common approaches:
Balance transfer between credit cards
A balance transfer is as straightforward as moving your existing credit card debt to a new card—typically one with a low or 0% interest rate for a limited time (often 6 to 24 months).
It's one of the simplest ways to refinance, saving you a decent amount of money on interest.
Before you choose a balance transfer, consider:
What’s the transfer fee? (Usually 1–3%)
How will the interest rate change after the intro period ends?
Do new purchases qualify for the same low rate?
Remember: If you keep spending, it can undo the whole point. This option works best when you have a clear repayment plan and can realistically pay off the balance within the promo period.
Consolidate with a personal loan
Apply for a personal loan to pay off your credit card balance.
You’ll borrow a set amount, use it to clear your card, and repay the loan on a fixed schedule—with a fixed interest rate and a clear end date.
Consolidating with a personal loan is a smart move if:
You have multiple credit cards
You want just one monthly repayment
You prefer knowing exactly when you'll be debt-free
How Credit24 can help?
At Credit24, you can apply for a Line of Credit. If approved, you can use the funds to pay off your credit card debt. It’s a simple, fast, and secure way to regain financial stability.
Some of the benefits:
A single repayment plan—no juggling multiple cards
A fixed term with a clear end date
No risk of revolving debt creeping back in
Quick access to funds, if approved
It helps you move from juggling debt to managing it with confidence.
Home Loan Refinancing
If you own a property, you can use it to refinance your credit card debt.
This way, you can replace high credit card loan interest with a much lower mortgage rate.
There are benefits, but it's important to weigh the costs too:
You're shifting unsecured debt into secured debt
Your home becomes part of the risk
You may pay more interest overall if the debt stretches across your full mortgage term
There may be refinancing fees or lender conditions
Steps to Refinance Credit Card Debt
This option makes the most sense when you're already restructuring your home loan and have steady financial habits.
1. Talk to your current credit provider
Before exploring other options, contact your existing lender. If you've been consistent with repayments, they may be willing to adjust your interest rate or offer more flexible terms.
2. Check your credit score
Your credit score can influence which refinancing options are available to you. In Australia, you can check your score by doing a soft enquiry. It's free and barely affects your credit score.
3. Calculate your total debt
List all current credit card balances, interest rates, and due dates. Knowing the full amount you owe gives you a clear view of what you need to repay and helps you compare potential solutions more accurately.
4. Compare your options
Explore different refinancing methods—balance transfer cards, personal loans, or mortgage-based solutions. Aim to find the option that aligns with your current budget and long-term goals.
You can compare:
Interest rates
Fees
Repayment terms
Total cost over time
5. Prepare your documents and apply
Having these documents ready can speed up and simplify your application process.
You'll need:
Valid identification
Proof of income (e.g. recent payslips or bank statements)
A list of current debts and expenses
If repayments still feel out of reach
If you're still struggling with repayments, contact your lender about financial hardship assistance. Credit providers are required to assess your situation and may offer temporary adjustments to help you manage during a difficult period.
Benefits of refinancing credit card debt
Restructuring your credit card debt can make your finances more predictable and easier to manage. Instead of juggling multiple repayments with different rates and due dates, you shift to a single plan that's simple to track and maintain.
Refinancing can help you achieve:
One monthly repayment instead of several
A clearer budget and improved cash flow
Potentially lower interest over time
Reduced risk of missed payments or late fees
Less reliance on revolving credit
Positive impact on your credit score through consistent repayment
Refinancing with a Credit24 credit line could be a practical way to simplify your debt if you're juggling several credit cards. You'll have one flexible credit option, a single repayment plan, and better visibility into your financial progress, without the unpredictability of multiple cards.
Credit24 can make personal loans easy for Australians looking for quick financial support. The entire process is online and usually takes under 10 minutes. While approvals are fast, each application is carefully assessed to ensure it meets responsible lending standards. If approved, the funds can typically be transferred to your bank account within 24 hours.
You can apply for between $500 and $10,000 to be repaid in up to 36 months. Interest rates are personalised to your situation, and there are no hidden fees—what you see is what you get. You're still welcome to apply if your credit score isn't perfect - we look at your whole financial picture, not just a number.
There's also the option to repay early with no penalties, which could help you save on interest.
Who can apply?
To be eligible for a Credit24 personal loan, you must:
Be an Australian citizen or permanent resident
Be at least 18 years old
Be employed and receive your income into a bank account
Earn a minimum of $1,000 per month
Have a reasonable credit history
