Paying Off Your Credit Card Bill with Another Credit Card: A Complete Guide

Struggling to pay off your credit card bill this month? You may be wondering if it’s possible to put the balance on another card to give yourself some temporary relief. Paying off one credit card with another is certainly an option, but there are a few important things to understand before going this route

In this comprehensive guide, we’ll break down the two main methods for paying a credit card bill with another credit card: balance transfers and cash advances. We’ll look at the pros and cons of each, as well as some alternative solutions you may want to consider first.

How Balance Transfers Work

A balance transfer allows you to move debt from one credit card over to another one Many credit card companies offer special balance transfer cards with 0% introductory APR periods specifically for this purpose

Here’s a quick rundown of how balance transfers work:

• You open a new credit card that offers 0% interest for a set period, usually between 12-21 months.

• You request to transfer your existing credit card balance over to the new card.

• The bank pays off your old card directly and transfers the balance

• You now owe the balance to the new card issuer instead of the old one.

• As long as you pay off the entire transferred balance before the intro period ends, you pay no interest.

Balance transfers offer several potential benefits:

• 0% APR for a period of time, allowing you to pay down the debt faster
• Consolidation of multiple card balances into one place
• Break from high interest charges on the old card

However, there are also some downsides to consider:

• Balance transfer fees usually apply (around 3-5% of the total balance)
• Interest shoots up after the intro period if balance isn’t paid off
• Multiple credit card accounts can be harder to manage

Overall, balance transfers can be a smart move if used responsibly. Just be sure you have a solid payoff plan in place first.

How Cash Advances Work

A cash advance allows you to use your credit card to withdraw cash, either from an ATM or bank teller. You can then use the cash to pay your credit card bill directly. Here are some key facts about cash advances:

• Interest starts accruing immediately (no grace period)
• Typically higher interest rates than purchases (often over 20%)
• Cash advance fees may apply (either flat rate or percentage)
• ATM fees may also apply if getting the advance from an ATM

Compared to balance transfers, cash advances have several distinct drawbacks:

• Much higher interest rates make them expensive
• No grace period – interest starts accumulating right away
• Additional fees make them costly

For these reasons, cash advances should really only be considered in emergency situations. Otherwise, the fees and high interest can make your financial situation even worse.

Alternatives to Paying with Another Credit Card

Before resorting to balance transfers or cash advances, make sure you’ve explored all other options:

Ask for More Time – Contact your credit card company and ask for an extension or to shift your due date. This can help you avoid late fees.

Explore Hardship Programs – Issuers like Discover offer hardship assistance if you’re experiencing financial difficulty. This may include reduced payments or waived fees.

Pay with Debit – If funds are available in your checking account, use your debit card or bank account to pay your bill.

Borrow from Friends/Family – Ask a trusted friend or family member to lend you the amount for this month’s payment. Offer to pay it back with a bit of interest.

Take out a Personal Loan – A personal loan from your bank may offer lower interest rates than credit cards.

Open a 0% Credit Card – Apply for a new credit card with a 0% introductory rate on purchases. This can help ease interest costs.

The key is to explore options with the lowest fees and interest rates for your situation. Paying off one card with another should really be a last resort option.

Which Method is Best for You?

Deciding whether to use a balance transfer or cash advance to pay your credit card bill typically depends on a few key factors:

• Your credit score – Balance transfers usually require good to excellent credit for approval. Cash advances just need an open credit card account.

• Your payoff time frame – Balance transfers allow 12+ months interest-free. Cash advances accrue interest immediately.

• Your financial situation – Those already struggling with debt should avoid taking on more through cash advances.

• Your willpower – Balance transfers still require discipline to pay off the full amount before rates spike.

Take an honest assessment of your credit, income, spending habits and willpower before moving forward. This will help determine if one method may be better for you than the other.

Tips for Success

If you do opt to use a balance transfer or cash advance to pay your credit card bill, make sure you set yourself up for success:

• Have a solid payoff plan – Know exactly when and how you’ll pay off the balance. Build payments into your budget.

• Watch out for fees – Factor any transfer fees or cash advance fees into your total repayment amount.

• Read the fine print – Understand when intro rates end and what the ongoing APR will be.

• Don’t charge more – Avoid using the card for any new purchases until the balance is paid off.

• Explore debt management tools – Credit counseling or debt management programs can also provide guidance.

• Know your risks – Recognize that these options do present risks if not managed carefully.

• Have an emergency fund – Build some savings so you have cash reserves to avoid this situation in the future.

With the right planning and discipline, paying off a credit card with another card can be feasible temporarily. But focus on building sustainable spending and repayment habits so you can avoid dependence on these options long-term.

The Bottom Line

Paying off one credit card bill with another credit card via a balance transfer or cash advance can provide temporary relief in a financial pinch if used selectively. But it’s not without risk. Be sure to weigh the pros and cons carefully for your situation.

Ideally, you’ll want to establish healthy money management habits that allow you to pay your bills from your income and savings. But if you need urgent relief, balance transfer cards and cash advances present options to responsibly leverage credit with the right planning. Just be sure you enter into them with eyes wide open.