Can You Use One Credit Card to Pay Another Credit Card Bill?

Can You Use One Credit Card to Pay Another Credit Card Bill?

Posted on August 8, 2012 by Jennifer in Credit Card Debt, Credit Card Limit, Credit Card Tips, Debt, FAQs, Statements

If you’ve ever been in a tough spot with credit card debt, wondering how you’re going to pay the bills, you might have wondered whether or not you can use one credit card to pay off another. The simple answer is “no,” you can’t just log into your account for Credit Card A and make a payment using Credit Card B. And it makes sense. It’s not in anyone’s best interest to let you shuffle debt back and forth rather than ultimately paying it off.

That said, there are technically two ways you can use the credit limit of one card to pay down another. Let’s look at both of them and whether or not you should consider these options.

Paying Off the Full Balance Due

Many credit cards allow you to pay off another credit card in full using balance transfers. You basically move your existing balance to a new card with better interest rates to save money. Then you can close the higher interest account with a $0 balance.

This method of paying off one credit card with another can be a smart move. That’s because you still get time to pay off the actual debt, and a lower balance transfer interest rate can save you money and help you pay off that debt faster. Just don’t get in the habit of credit card hopping too often. Too many new credit card applications can hurt your credit score.

Making Smaller Credit Card Payments

While you can’t directly use one credit card to make your monthly payment on another credit card, there is a way around this. You could take out a cash advance (or use a check tied to your account) and use that money to make your other credit card payment.

This might sound appealing if you’re in a desperate situation. But think long and hard before you do this. Cash advances are usually subject to much higher interest rates than purchases. Plus you can be charged a cash advance fee on top of your interest charges. You could end up paying more for the cash advance than you would for a late payment on your other card.

Instead consider contacting your credit card company about an extension or a change in your due date long-term if it doesn’t work with your schedule and budget. They might be able to work something out with you.

Have you ever used one of these methods to pay off one credit card with another? Do you think it was a good idea, or would you do things differently in the future? Share your thoughts with us in the comments.