Can You Pay a Credit Card With Another Credit Card?

Being tight on cash when your credit card is due can be stressful. You may wonder if you can use another credit card to cover the upcoming payment. Unfortunately, most lenders don’t accept credit card payments. But that doesn’t mean you’re out of options.

You can try using a cash advance or transferring the balance to a different card. Both options come with risks but can serve as temporary solutions for managing debt. This article explores whether you can pay a credit card with another credit card. It also offers advice on what to do if you can’t make a payment.

Can You Pay a Credit Card With Another Credit Card?

You can’t pay a credit card bill with another credit card like you’re purchasing an item at the store. Most credit card issuers only accept checks, money orders or electronic bank transfers as forms of payment. This restriction prevents individuals from accumulating more debt.

That said, credit cards offer other resources to tap into. For example, cash advances and balance transfers can help you avoid missing a payment and accruing interest or late fees. However, these methods also carry risks. When used often, they can create further debt or higher monthly payments.

Paying a Credit Card With a Cash Advance

A cash advance involves withdrawing cash from an ATM with your credit card. You can then deposit that cash into your bank account or use it to buy a money order to pay your credit card bill.

Most companies charge a fee for cash advances. They also limit how much money you can withdraw within an established timeframe. Additionally, that cash isn’t yours to keep. It’s borrowed money you have to pay back, usually with interest.

What to Consider Before Using a Cash Advance

A cash advance may seem like a quick, easy way to pay your credit card bill. In reality, it increases your existing debt and may cost you more in the long run. Some companies charge a higher APR for cash advances than for regular credit card purchases.

Depending on the lender, they also may not offer grace periods that delay interest payments. This means your cash advance can start accruing interest immediately. Additionally, you can only borrow the amount of cash available to you based on your card’s line of credit. If you already owe money on that card, you may not have enough funds to cover another card’s payment.

Cash advances also need to be paid back. If you don’t have the money by the next bill, you may end up with multiple monthly credit card payments. This isn’t ideal for long-term debt management.

That said, a cash advance can help you avoid financial consequences in short-term emergency situations. These include taking out a payday loan or hurting your credit score with a late payment.

Transferring the Balance From One Credit Card to Another

A balance transfer allows you to move existing debt from one credit card to another. Some people use balance transfers to consolidate debt from multiple accounts or get a lower interest rate.

This method provides more benefits than a cash advance. For example, some credit card companies offer introductory rates for new customers. You may receive a 0% interest rate for the first 18 months after transferring existing debt. This can reduce the amount owed.

What to Consider Before Transferring Your Balance

Despite the benefits of balance transfers, they also come with risks. Credit card companies commonly charge a balance transfer fee. This can be a flat rate or a percentage of the amount transferred.

Although you may avoid paying interest for the first year or so, you still have to make the minimum monthly payment on your new card. Missing a payment may forfeit your introductory interest rate and lower your credit score.

Additionally, lenders may place restrictions on balance transfers. Some don’t allow debt transfers between internal accounts. This means you have to open a card with a different lender to move the balance.

You can also only transfer an equal or lesser amount than your available line of credit. For example, if an issuer approves a credit line of $3,000, you can’t transfer a balance greater than this amount. You can transfer a portion of your debt that fits within that limit. However, you risk juggling multiple payments and exacerbating your financial situation.

Opening a balance transfer card may not be ideal if you have a low credit score or recently applied for another line of credit. Each time you apply for a new card, you trigger a hard inquiry against your credit report. This can temporarily reduce your score, which isn’t ideal if you already have low credit.

Can You Get Points From Paying a Credit Card With Another Credit Card?

You can’t earn points by using a credit card to pay off another credit card. Credit issuers don’t consider cash advances or balance transfers as qualifying purchases. Depending on the card and lender, you may gain points from using a credit card to pay other bills. For example, some companies include mortgage, medical or utility payments in their reward systems.

When Should You Pay Your Credit Card Balance?

Aim to meet your minimum monthly payment by the due date listed on your credit card statement. Missing a payment or making a late payment can hurt your credit score.

If you transfer your balance and have an interest-free introductory period, identify when that period ends. Your remaining balance risks accruing expensive interest fees past that date. In some cases, the issuer may backdate interest to when the debt originated.

What to Do If You Can’t Pay Your Credit Card Bill

For some people, using a cash advance or balance transfer to pay their credit card bill isn’t an option. Getting approved for a balance transfer card often requires a good credit score. Additionally, you can only access a cash advance if you have funds available for it.

If you’re in a tight spot, you may consider other solutions, such as:

Reviewing your finances: Check your current credit card balances and interest rates. Review your overall monthly budget to determine how much money you can contribute to these payments. After organizing your personal finances, prioritize paying down the largest balances with the highest interest rates. These can impact your finances the most.
Contacting your credit issuer: Ask your creditor if it offers a credit card hardship program. Some companies may waive fees or lower interest rates for a short time. If your money issues are short-term, this service can provide temporary relief and help you catch up on payments.
Opening a personal loan: Consider using a personal loan to consolidate your debt. A loan allows you to merge debt from multiple accounts into a single payment. On average, personal loans also have lower interest rates than credit cards, helping you save money over time.

Overall, practicing good spending habits and tracking credit card payments can help you avoid building large amounts of debt. Consider a balance transfer or cash advance in emergency financial situations, but don’t use these methods too often. If you’re worried about debt or missed payments impacting your credit, check your score. Consistent credit report monitoring can help put your mind at ease.