Can We Pay Credit Card Bill By Another Credit Card?

Paying off credit card debt is a common financial goal for many people. With high interest rates and seemingly endless monthly payments, credit card balances can feel like they are impossible to eliminate. This leaves many people wondering – can I use one credit card to pay off another?

The short answer is generally no Most credit card companies do not allow you to make direct payments on one card using another card However, there are some roundabout methods, like balance transfers and cash advances, that make it possible to shift credit card debt around.

While these options can provide temporary interest savings or consolidation, they come with risks and fees of their own. So before deciding if you should pay a credit card bill with another credit card, let’s look at how it works and weigh the potential pros and cons.

Why You Can’t Directly Pay a Credit Card With Another Credit Card

When it comes to directly paying your monthly credit card bill with another credit card, the simple fact is most issuers do not allow it.

There are a few reasons behind this widespread policy:

• It circumvents interest charges – Credit card companies make money by charging interest on carried balances. Allowing direct card-to-card payments would let consumers avoid interest on the first card.

• It facilitates balance chasing – Credit card users could continuously transfer balances back and forth to avoid interest and minimum payments This makes balances harder to collect

• It complicates accounting – Direct card-to-card payments muddle transaction records. This makes managing statements and accounting more difficult on the back end.

While this policy is understandably frustrating to consumers trying to manage debt, there are still a couple indirect options for paying a credit card bill using another credit card. The two main methods are balance transfers and cash advances.

Balance Transfers for Paying Credit Card Bills

A balance transfer involves moving debt from one credit card over to another card. Many credit card companies offer promotional 0% intro APR periods on transferred balances to attract new customers.

Here is a quick rundown of how balance transfers work:

• You open a new credit card that offers 0% interest for a set period, usually between 6-18 months. This is called the promotional or introductory period.

• You request to transfer a balance from an existing card to the new account. Most issuers allow transfers up to the total credit limit.

• The credit card company pays off the set amount on your old card and charges it to the new card.

• You now owe the balance to the new card issuer at 0% APR until the promotional period expires.

This can provide significant interest savings on the transferred amount during the intro period. It also consolidates multiple card payments into one monthly bill.

However, there are some fees and downsides to consider:

• Balance transfer fees – Issuers usually charge a one-time fee of 3-5% of the transfer amount.

• Deferred interest – If the balance is not fully paid by the end of the promo period, all the accrued interest gets added to your balance.

• Impact on credit scores – Too many balance transfers can lower your credit utilization ratio and scores.

• Debt growth – There is the temptation to run up more debt on the new 0% card or old cards.

Overall, balance transfers can be a strategic option for saving money and consolidating higher interest credit card debt onto a lower APR account. But they require diligence to avoid deferred interest and further balance growth.

Cash Advances to Pay Off Credit Cards

The other route for indirectly paying a credit card with another credit card is taking out a cash advance.

Cash advances allow you to borrow against your available credit and receive the money as cash. Here is a quick summary of how they work:

• You use your credit card to take out a cash advance, usually at a bank, ATM, or cash advance check.

• The money gets deposited into your bank account as cash. Most cards have cash advance limits around 25-50% of the credit limit.

• You can then use the cash to make a payment on the other credit card.

• Interest begins accruing immediately on cash advances with no grace period.

This can provide fast access to cash for paying other bills when needed. However, the costs and fees associated with advances are typically much higher compared to balance transfers or purchases:

• Cash advance fees – Most cards charge a fee of around 5% of the advance amount.

• High APR – Cash advance rates are usually over 20% and higher than purchase rates.

• No grace period – Interest starts accumulating immediately on cash advances.

• Impact on credit – Frequent cash advances can lower your credit scores.

Overall, the upfront fee, immediate interest, and higher rates make cash advances one of the most expensive ways to access cash or pay other credit cards. They should be used sparingly and strategically.

Weighing the Pros and Cons of Paying Credit Card Bills With Other Cards

Based on how balance transfers and cash advances allow indirectly paying a credit card with another, here is a quick comparison of some of the key pros and cons:

Potential Pros

• Lower interest costs – Balance transfers can provide 0% interest savings during the intro period.

• Debt consolidation – Combining balances can simplify managing multiple payments.

• Access cash quickly – Cash advances provide fast cash that can be used to pay other debts.

Potential Cons

• Balance transfer fees – Issuers usually charge a 3-5% fee to transfer your balance.

• Cash advance fees – You will incur a fee around 5% of the amount advanced.

• Higher interest later – Rates spike after intro and advance periods end.

• No grace period – Interest starts immediately on cash advances.

• Credit impact – Too many transfers or advances can lower credit scores.

• Debt growth – Easy access to more credit can tempt balance growth.

Consider both the pros and cons before deciding if transferring a balance or taking a cash advance to pay off a credit card is the right move for your situation.

Tips for Strategic Use of Balance Transfers and Cash Advances

If you determine a balance transfer or cash advance is the best way to pay current credit card debt, here are some tips for keeping the process strategic and low risk:

• Compare cards to find the lowest balance transfer fees and longest 0% intro APR periods. Avoid cards with deferred interest promotions.

• Time the transfer for when you can pay off most or all of the balance during the intro period. Avoid transfers you will need more time to pay off.

• Be cautious of balance chasing by transferring too often. This can hurt credit and increase overall interest.

• Have a payoff plan ready for the end of intro periods to avoid back interest.

• Only use cash advances when absolutely needed for emergency expenses or a payoff strategy. Don’t use advances for discretionary purchases.

• Read the terms carefully and verify transfer/advance details with your credit card company before proceeding.

Alternatives to Paying Credit Cards With Other Credit Cards

If balance transfers or cash advances do not seem like the right option, here are a few alternatives to consider instead for tackling credit card debt:

• Debt management plan – Work with a nonprofit credit counselor to negotiate lower rates and consolidated payments.

• Debt consolidation loan – Take out a personal loan at lower interest to pay off credit card balances.

• Lifestyle changes – Reduce expenses and shift budgets to pay off cards faster.

• Side income – Bring in extra money through a side gig to supplement debt payments.

• Balance forgiveness – Some issuers forgive or settle balances for customers in financial hardship.

The best path will depend on your financial situation. Talk to a credit counseling nonprofit to go over all your options.

The Bottom Line – Use Credit Card to Pay Off Card Strategically

While you generally can’t directly pay one credit card bill with another credit card, balance transfers and cash advances allow you to shift debt around. This can provide some interest savings and consolidation benefits.

But these options also carry risks like fees, back interest, and increased debt. So proceed carefully and strategically if using them to avoid making your situation worse in the long run. Often the better path is cutting expenses or looking at alternatives like debt management plans and consolidation loans.

At the end of the day, there is no easy fix or shortcut to magically erase credit card debt. Be wary of relying on balance transfers or cash advances alone to pay off your cards using other cards. The key is developing a realistic payoff plan and budget you can stick to month after month. With focus and discipline, you can take control of your debt and credit payments over time.