Paying off credit card debt is one of the biggest financial challenges many people face today With high interest rates and multiple cards to juggle, it can feel like you’re stuck on a debt treadmill So when money is tight, a tempting option may be to pay one credit card bill with another credit card. But is this financially wise or setting yourself up for deeper debt?
I’ve dug into the details to provide a full guide on whether and how you can pay a credit card bill with another card. Read on for plain English explanations, pros and cons, alternatives to consider, and tips to manage credit card debt responsibly.
Is It Possible to Pay a Credit Card With Another Credit Card?
The short answer is yes, you technically can pay a credit card bill with another credit card. However, you have limited options to do this directly. The two main methods are balance transfers and cash advances.
Balance Transfers
A balance transfer involves moving debt from one card to a new card, typically one with a lower interest rate. The process takes a few weeks, and you’ll pay a fee of 3-5% of the amount transferred. But you can save substantially on interest if you pay off the balance during the new card’s 0% intro APR period.
Balance transfers don’t allow you to avoid minimum payments on the original card while the transfer processes. And you can’t transfer a balance from one card to another you already have. The new card must be from a different issuer.
Cash Advances
You can use a credit card to get cash from an ATM, then deposit that money in your bank account to pay another credit card bill But cash advance fees are steep, usually 5% of the amount withdrawn, with a $10 minimum Plus cash advances begin accruing interest immediately at a lofty APR.
Paying Directly Not Allowed
Credit card issuers don’t allow you to pay a monthly bill directly with another credit card. Online and over the phone payments require a bank account. This restriction curbs customer defaults and excessive debt shuffling between cards.
Weighing the Pros and Cons of Paying a Credit Card With Another
While balance transfers and cash advances make it possible to pay a credit card bill with plastic, both options have downsides. Let’s explore the potential pros and cons so you can determine if either method is right for your situation.
Potential Pros
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Lower interest rate – Transferring debt to a card with a lower intro APR saves on interest. This allows you to pay more toward your principal balance each month.
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Consolidate into one balance – Combining multiple card balances into one new balance can simplify repayment, as you make one monthly payment at one interest rate.
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Access cash quickly – Cash advances provide immediate cash to pay pressing bills when funds are tight.
Potential Cons
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High fees – Balance transfer fees range from 3-5% of the amount moved. Cash advance fees are typically around 5% with a minimum of $10.
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Easy to overspend – If you simply transfer debt to a new card but continue charging, your overall balance will keep growing.
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Accrues interest immediately – Unlike purchases, cash advances begin accumulating interest right away with no grace period.
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Impact on credit – If you max out cards with transfers or cash advances, your credit utilization rate may spike, hurting your credit scores.
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Prepayment penalties – Some card issuers charge fees if you pay off a transferred balance before the intro 0% APR period ends.
As you can see, while paying a credit card with another credit card can provide temporary benefits, the risks could outweigh rewards if you don’t tread cautiously.
Safer Alternatives to Pay Off Credit Card Debt
If you determine that balance transfers or cash advances aren’t the best solution, safer alternatives can help you pay off credit card balances responsibly.
Ask Issuers for Lower Rates
You may be able to negotiate a lower ongoing APR or fixed monthly payment with your credit card companies by asking nicely. Issuers want to retain customers, so they have incentive to work with you.
Pay More Than the Minimum
Making payments above the minimum due cuts down your principal faster so interest charges grow slower. Even paying $10 extra on a $1,000 balance could save over $1,000 in interest and pay off debt years sooner.
Consolidate With a Personal Loan
Personal loans typically have lower fixed rates than credit cards, helping you save on interest costs. And you’ll have just one monthly personal loan payment instead of tracking multiple cards.
Use a Debt Management Plan
Credit counseling agencies can set you up on an affordable monthly debt repayment plan and negotiate lower interest rates with card issuers. There’s usually a small monthly fee.
Consider Credit Card Hardship Programs
If you’re struggling to make minimum payments due to financial hardship like job loss, card issuers may temporarily reduce or waive minimums, fees, and interest. Contact them to explain your situation and request hardship assistance.
Seek Help From a Nonprofit Credit Counselor
Reputable nonprofit credit counseling agencies like NFCC.org offer free or low-cost guidance to manage debt through methods like debt management plans and consumer credit card counseling.
Tips for Paying Credit Cards Responsibly
Whichever path you take to pay down credit card balances, practicing healthy credit habits goes a long way toward staying out of debt. Here are some top tips:
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Make at least the minimum payment every month on time. Set payment reminders and automate payments.
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Pay more than the minimum whenever possible. Even small extra amounts add up significantly over time.
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Avoid charging more than 30% of a card’s limit, as high utilization hurts credit scores.
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Read statements closely and dispute any unauthorized charges immediately.
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Consider cards with 0% intro APR offers on purchases and balance transfers to save on interest. But read the fine print.
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Don’t charge more than you can realistically pay off each month. Carrying balances leads to growing interest costs over time.
The Bottom Line
While you can technically pay a credit card bill with another credit card through balance transfers or cash advances, each method has downsides. Safer options like asking for lower rates, paying more than the minimum due, consolidating debt with a personal loan, or seeking nonprofit credit counseling provide healthier ways to pay off credit card balances.
The key is developing and sticking to a realistic debt payoff plan. With commitment to financial discipline, you can eliminate credit card debt and achieve lasting financial freedom.
For direct monthly payments: No
Paying monthly credit card bills with different credit cards generally isnt an option. Dont expect to earn easy points and miles in a never-ending cycle or quickly buy yourself more time to pay off debt this way.
Credit card issuers usually require you to pay credit card bills with a bank account when youre making payments online or over the phone. Youll have to provide information like an account number and routing number — and you cant just substitute a credit card number instead.
In part, these restrictions exist because issuers want to limit their risk. A customer who pays one credit card with another may be more likely to default on payments.
When transferring a balance: Yes
You can save money on interest by moving debt from a high-interest credit card to one with an introductory 0% APR offer or low-interest promotion on balance transfers, then paying it off at a lower rate.
With some exceptions, credit cards generally charge balance transfer fees of 3% to 5% of the amount transferred. Balance transfers arent instant, either; they can take weeks to go through. Also, they generally dont earn rewards.
For cards with long 0% intro APR periods for balance transfers and low or no balance transfer fees, check out NerdWallets best balance transfer credit cards.
While the exact process for balance transfers can vary widely, here are the steps you generally have to take when working with major issuers:
1. Apply for a card with an introductory 0% APR offer on balance transfers or use an offer on a card you already have. To qualify for the best offers, you generally have to have good or excellent credit (typically, FICO scores over 690). Something to keep in mind: Same-issuer transfers generally arent allowed. For example, if you want to transfer a balance from a Chase card, you cant transfer it to another Chase card.
2. Initiate the balance transfer. If youre doing this online or by phone, youll need to provide information about the debt youre looking to move, such as the issuer name, the amount of debt and the account information.
Sometimes, balance transfers can also be initiated using convenience checks, or the checks issuers send you in the mail. Before using one, though, read the terms to find out if it will count as a balance transfer and what your interest rate will be.
3. Wait for the transfer to go through. Once the balance transfer is approved, which could take two weeks or longer, the issuer will generally pay off your old account directly. That old balance — plus the balance transfer fee — will show up in your new account.
4. Pay down the balance. When that balance is added to the new card, youll be responsible for making monthly payments on that account. And if you pay it down during the introductory 0% APR period, for example, you could potentially save a bundle.
Can you pay credit card bill with another credit card?
Can I pay my credit card with another credit card?
You can pay a credit card bill using another credit card by using a balance transfer, which may include a fee. Some credit cards offer new cardmembers low introductory interest rates on balance transfers.
Can I use a credit card to pay other credit card bills?
No, you cannot use a credit card to pay another credit card bill directly. However, credit cards often have options like cash advance or balance transfer that give you access to ‘cash’ funds. If you are short on money to pay your bills, you can use these funds to pay off a credit card balance.
Can I pay off my credit card balance using another credit card?
Typically, paying off one credit card balance using another credit card isn’t possible. Banks don’t allow direct credit card payments for credit card balances. However, there is a loophole: A balance transfer credit card can be used to pay off another credit card balance.
How do I pay a credit card bill using a balance transfer?
To pay a credit card bill using a balance transfer, you’ll need to open a balance transfer credit card or check your existing credit cards for a balance transfer offer. Once you have the offer, you can request a balance transfer up to your total available credit minus the balance transfer fee.