Can I use one credit card to pay for another?

Let’s say you need to pay off your credit card quickly. For example, maybe your credit limit is almost depleted, or maybe you want to pay off your outstanding balance in hopes of improving your credit score. It could be that your credit card bill is due and there isn’t enough money in your checking account to cover the minimum payment.

Can I transfer a credit card payment to a credit card? Can I use one credit card to pay off debt on another credit card?

The short answer is no, at least not directly. Credit card providers do not allow you to pay off your debt by simply debiting it from another card.

However, there are two ways to use credit cards to pay off debt. You can take a cash advance and use the money to pay your credit card bill, or you can open a balance transfer card and pool your existing debt into one line of credit.

If you want to pay off a credit card with another credit card, here’s what you need to know:

How can I pay with a credit card with another?

Using credit to pay off a loan is generally a bad idea, which is why credit card issuers won’t let you pay your credit card bill with another credit card. In most cases, using one credit card to pay off another credit card will simply increase your debt and make it even harder to pay off your credit cards in the future.

However, there are two situations in which you can use credit cards to pay off existing credit card debt.

You can apply for a balance transfer credit card by consolidating credit card balances and paying off debt over time, and since balance transfer credit cards often come with a 0% introductory annual interest rate, this strategy can save you a lot of money.

If you need to make a credit card payment immediately and have no other options, you can cover the payment with a down payment, but this short-term tactic can cost you even more money in the long run.

Balance transfer method

Balance transfer credit cards are a great tool for paying off debt – in fact, they are one of the best ways to consolidate and pay off outstanding debt. The best balance transfer credit cards offer at least 0% APR on balance transfers, giving you plenty of time to make payments on the transferred balance without worrying about interest charges.

When you use a credit card with a balance transfer to pay off debt on another credit card, you are giving yourself a fresh start. If your balance transfer card comes with an introductory zero interest rate offer, every payment you make before the initial rate expires can be used directly to pay off your debt — and you could even end up debt free.

The key to making a balance transfer is determining how much money you will need to set aside for credit card debt so that you pay it off before the 0% APR period ends. You also cannot accumulate new debt on your old card. This would defeat the purpose of transferring the balance and leave you with even more debt than when you started.

Cash advance

Cash advance allows you to withdraw cash from your credit card, but you have to pay for it. When you take out a cash advance, you not only pay a fee for the advance itself, but you also pay a higher interest rate on any money you withdraw. Cash advance fees and interest rates for cash advances can be significant and many people do not realize how much cash advances can cost them.

If you cannot afford to make the minimum payment on your card in some other way, you may consider getting a cash advance to cover it, but we do not recommend using one credit card to pay for another. A cash advance increases your debt, not reduces it, and comes with fees and high interest rates that can keep increasing the amount you owe.

Should I pay with a credit card with another?

If you’re thinking about using a credit card to pay for another card, consider all of your options first. Is there another way to get the money needed to make the minimum payment? For example, some people cut their budget while others work on the side. Even borrowing money from family or friends is likely to be a better solution than getting a cash loan, especially if you have a plan to pay it back as quickly as possible.

What to do if you can’t pay your credit card bill

If you’re having trouble making payments on your credit card, contact your credit card issuer and find out about their hardship assistance programs. They are designed to help credit card users manage their accounts during times of emergency, including unemployment, sickness, and other forms of economic hardship.

After discussing your situation with your credit card issuer, you may be able to get a lower minimum payment, a lower interest rate, or a temporary debt reprieve—all of which are generally better than a missed credit card payment or cash withdrawal. to cover a credit card bill.

bottom line

Credit card issuers won’t let you pay for one credit card with another credit card—and for good reason. If you want to use credit to pay off existing credit card debt, look for a credit card with a balance transfer of at least 12 months with 0% APR to help you consolidate your debts and pay them off without charging interest. Avoid using cash advances to cover credit card payments, as the associated fees and interest will only increase your debt and make it harder to pay off in the future.

Nicole Dicker is a freelance writer specializing in personal finance and habit formation. She spent five years as a writer and editor on The Billfold, a personal finance site where people talk candidly about money, and she regularly teaches classes on how to increase your income as a freelancer.