Can I transfer my credit card debt to the same bank? What happens if you apply to balance transfer with the same issuer?
These are a few of the most commonly asked questions regarding balance transfers between the same bank. We understand that knowing each bank's rules and restrictions can be confusing, so this article will shed some light on this topic.
Credit card issuers generally provide multiple cards that can offer different perks. Most card issuers offer 0% interest on their balance transfer cards for a while.
If you find a bank you enjoy using, you tend to want to stay with them, which can mean signing up for multiple credit cards. However, transferring debt between credit cards with the same bank is a bit more complicated.
Find a 0% balance transfer credit card with Finty.
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Key takeaways
- Most banks do not allow balance transfers between credit cards within the same institution.
- For example, if you have a card with Westpac, you can't transfer its balance to another Westpac card.
- If you apply for a balance transfer card with the same issuer, your application might be denied or you might be approved for the card but not the balance transfer.
Can I transfer my credit card debt to the same bank?
Generally, banks will not allow you to transfer debt from one credit card to another within the same bank. Most banks have restrictions on what banks you can and can’t balance transfer from. This means if you have a credit card with the Bank of Melbourne, you can’t transfer the balance to another Bank of Melbourne card.
It’s likely you won’t be approved for every card option available to you. This could be for a wide variety of reasons, so it’s best to try and find out what cards you may be eligible for before you start applying.
Balance transfer restrictions
When it comes to balance transfers, banks have their own set of rules on what banks you can and can’t transfer balances to. The following are the restrictions that apply to the most commonly used credit card brands.
| Issuer | Balance transfers restricted from |
|---|---|
| American Express | American Express |
| ANZ | ANZ |
| Bank of Melbourne | Bank of Melbourne, BankSA, St.George |
| Bank of Queensland | Bank of Queensland, Citi, Coles, IMB, Suncorp, Qantas Money, Virgin Money, any other Citi-issued card |
| Bank of Sydney | Bank of Sydney |
| BankSA | Bank of Melbourne, BankSA, St.George |
| Bankwest | Bankwest |
| Bendigo Bank | Bendigo Bank |
| Citi | Bank of Queensland, Citi, Coles, IMB, Suncorp, Qantas Money, Virgin Money, any other Citi-issued card |
| CommBank | CommBank |
| Coles | Bank of Queensland, Citi, Coles, IMB, Suncorp, Qantas Money, Virgin Money, any other Citi-issued card |
| IMB | Bank of Queensland, Citi, Coles, IMB, Suncorp, Qantas Money, Virgin Money, any other Citi-issued card |
| ING | ING |
| Jetstar | Jetstar, Macquarie, Woolworths, any any other Card Services-issued card |
| Latitude Financial Services | Latitude Financial Services |
| Macquarie | Jetstar, Macquarie, Woolworths, any other Card Services-issued card |
| NAB | NAB |
| Qantas Money | Bank of Queensland, Citi, Coles, IMB, Suncorp, Qantas Money, Virgin Money, any other Citi-issued card |
| St.George | Bank of Melbourne, BankSA, St.George |
| Suncorp | Bank of Queensland, Citi, Coles, IMB, Suncorp, Qantas Money, Virgin Money, any other Citi-issued card |
| Virgin Money | Bank of Queensland, Citi, Coles, IMB, Suncorp, Qantas Money, Virgin Money, any other Citi-issued card |
| Westpac | Westpac |
| Woolworths | Jetstar, Macquarie, Woolworths, any other Card Services-issued card |
Credit card issuer vs credit card brand
When deciding on banks to use for balance transfers it's helpful to know the difference between credit card issuers and credit card brands. This is not immediately clear when comparing credit cards.
The best way to understand the difference is by looking at where credit cards come from.
You can have a credit card brand with branding for places like banks, shops, and airlines, but these cards are issued from a larger financial institution.
A card issuer is a financial institution like Citi or American Express. These banks issue cards to different brands and can even have their own bank branded cards like Citi credit cards or Amex cards.
To be sure you’re following bank restrictions, it can be helpful to know the most common credit card issuers in Australia. Each card issuer has its own brands that can also issue credit cards.
Here are the five most common credit card issuers in Australia:
- Commonwealth
- NAB
- Westpac
- ANZ
- Citi
What happens if you apply to balance transfer to a card with the same issuer?
Applying to move debt to a new card with the same card issuer can have varying results based on several factors.
- Your application may be denied. If your application is denied, it is most likely for a number of reasons, mostly having to do with your credit history. Having multiple credit card applications can negatively impact your credit rating, so it’s best to double-check if you are potentially eligible for the card you're applying for.
- You may get a derogatory mark on your credit history. Having multiple applications denied, especially in a short period, can leave a black mark on your credit history that can deter future lenders from approving your application.
- You may be eligible for the card without the balance transfer. Even if you’re not able to balance transfer to the card you’ve applied for, you could still be eligible for the card. A bank may send you an offer letter saying you still qualify, but they cannot process a balance transfer through it.
The bottom line
Balance transfers can be beneficial, but to complete one, you need to know certain details such as what bank you can balance transfer to and the maximum and minimum transfer amounts. These details depend on the bank you’re using and what cards you qualify for.
Choosing to balance transfer can save you money on interest and fees. But before you apply to balance transfer to a card with the same bank, it’s important to know most banks don’t allow it. Importantly, doing so may negatively impact your credit.
