Credit Cards

Can You Pay a Credit Card With a Credit Card?

If credit card debt puts you down or you’re committed to earning as many credit card points as you can, you may be thinking whether you can pay a credit card with a credit card. The short answer for paying credit card debt with credit card is no, you can’t. But, there’s a work-around that involves a balance transfer from one card to another. Let us talk about it

Paying Your Credit Card Bill

Can you make credit card payments with a credit card? Let us talk about your options. When you received your credit card bill you’ll see that you have the option to pay the full balance or to make a minimum payment. If you are the type of person who just makes the minimum payment (or anything less than the full payment) you’ll accrue interest on the amount you don’t pay. In other words, your debt will grow because of interest rates.

What will happens when money is tight and you can’t pay your balance in full? Aside from that you don’t have the money in a checking or savings account to pay your balance, can you use one credit card to pay with another?

Not exactly, If you wanted to, you may get a cash advance from one credit card. If you do so, it means racking up interest (usually double-digit interest) on the cash you get and paying cash advance fees. You may deposit that cash into a checking account and use the account to pay the bill of another credit card. Always remember that by doing so this may cost you more on your outstanding balance especially if you are only paying the minimum amount as your monthly payments.

The Balance Transfer Option

There’s a better solution to deal with this problem. Making a credit card balance transfer can feel like you’re paying one credit card with another. In fact, even though, you’re using one credit card to completely pay another. Say you have a balance on a credit card and and your financial income won’t allow you to pay it off quickly. You may have the option to get balance transfer credit card that charges a 0% APR on transferred balances. These type of cards generally offer a 0% rate for 12 months, but some cards offer 15 or 18 interest-free months.

Once you agree to the balance transfer (and pay any associated fees) your new credit card will essentially pay off the balance on the old credit card and transfer the old debt to your new card. You can take advantage of the 0% introductory APR to pay off your transferred balance. That balance will not accrue new interest until the introductory period ends it is advisable for you to pay the entire balance until introductory period ends. Do not make any new purchase until you are completely debt free as much as possible.

Bottom Line

Enacting a balance transfer is not exactly paying a credit card with a credit card because the more that you do cash advances, the more your balances accrue higher interest rates. With a balance transfer, you may effectively pay off one card and stop using it altogether. You’ll then pay your smallest balance once it’s transferred to your new card. Ideally, you will have paid down your outstanding balance by the time your introductory 0% APR offer expires and your interest rates jumps up.