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A person holding two credit cards, symbolizing the process of using one to pay off the other.

How to Pay a Credit Card Bill Using Another Credit Card

2 min read
Sources (11)
financebankingcredit scoreshopping

Summary

Balance transfers and payment services are alternatives to direct credit card payments. Balance transfers offer 0% APR but have fees. Payment services like Plastiq charge processing fees. Cash advances are costly. Benefits include lower interest and rewards, but fees and potential debt cycles are drawbacks. Consider loans or credit counseling for help.

Understanding Balance Transfers and Payment Options

Before exploring how to pay a credit card bill with another credit card, it's crucial to understand the available methods and their implications. While direct card-to-card payments aren't typically possible, several alternatives exist.

Common Methods

  1. Balance Transfers
  • Most straightforward and cost-effective approach
  • Often includes promotional 0% APR periods
  • Requires transfer fee (typically 3-5% of transferred amount)
  • Compare offers at NerdWallet or Bankrate
  1. Payment Services
  • Intermediary services like Plastiq, PayPal, and Venmo
  • Usually charge 2-3% processing fees
  • Can earn rewards on payments
  1. Cash Advances
  • Available through ATMs or banks
  • High fees and immediate interest charges
  • Generally not recommended due to costs

Benefits and Drawbacks

Advantages

  • Lower interest rates through balance transfers
  • Debt consolidation opportunities
  • Simplified payment management
  • Potential rewards earnings
  • Credit building through on-time payments

Disadvantages

  • Transfer and processing fees
  • Potential high interest rates
  • Temporary credit score impact
  • Risk of creating a debt cycle
  • Cash advance fees and immediate interest

Steps for Success

Balance Transfer Process

  1. Check current card's transfer terms
  2. Compare balance transfer credit cards
  3. Apply for a new card
  4. Initiate the transfer
  5. Continue payments until transfer completes

Calculating Costs

Transfer amount × Fee percentage = Transfer fee Example: $5,000 × 3% = $150 fee

Monthly Payment Planning

Transfer amount ÷ Promotional period months = Required monthly payment

Best Practices

"If you find yourself regularly transferring balances between cards without making progress on the principal, you may need to seek professional financial advice."

  • Read all terms and conditions carefully
  • Calculate total costs including fees
  • Make timely payments
  • Create a debt repayment plan
  • Avoid new purchases on transferred balances
  • Plan for promotional period expiration

Alternative Options

Consider these alternatives if credit card payments aren't ideal:

  • Personal loans
  • Debt consolidation loans
  • Home equity lines of credit (HELOC)
  • Debt management plans
  • Credit counseling services

Resources for Help

For additional guidance on managing credit card debt:

Consider consulting with a financial advisor before making significant decisions about your credit card debt management strategy.

Sources

WNerdWallethttps://www.nerdwallet.com/best/credit-cards/balance-transferWBankratehttps://www.bankrate.com/credit-cards/balance-transfer/best-balance-transfer-cards/WPlastiqhttps://www.plastiq.com/WPayPalhttps://www.paypal.com/VVenmohttps://venmo.com/WConsumer Financial Protection Bureauhttps://www.consumerfinance.gov/WNational Foundation for Credit Counselinghttps://www.nfcc.org/WFederal Trade Commissionhttps://www.ftc.gov/WCreditCards.comhttps://www.creditcards.comWNerdWallethttps://www.nerdwallet.com/balance-transfer-credit-cardsWBankratehttps://www.bankrate.com/credit-cards/balance-transfer/