Can you pay a credit card bill with another credit card?

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Staring at a credit card bill that's bigger than your budget? You might be wondering if you can just pay it off with another credit card. However, it’s not as simple as it sounds. 
You typically can’t swipe a credit card to pay off another, but there are some indirect ways to handle a credit card crunch. Here’s what you need to know. 
 

Can you pay a credit card with a credit card?

No, you typically can't pay a credit card directly with another credit card. Most credit card companies will only let you pay your bill using:

• Checks
• Money orders
• Electronic bank transfers

Why? Credit card issuers view using one form of credit to pay another as a red flag. They aim to minimize their risk of non-payment and default by accepting only payments from your checking account or cash equivalents like money orders.

While there are indirect ways to use one credit card to pay another, you should be cautious. This approach often leads to more debt, as you're essentially borrowing money to keep up with existing debts. This can lead to more interest and fees, increasing your total amount owed.

If you're in a tight spot and need to use a credit card to pay a debt, you may have two options: a balance transfer or a credit card cash advance.

Using a balance transfer to pay your credit card

Balance transfers are a common indirect way to pay a credit card with a credit card. This method moves your debt from one credit card to another, potentially benefiting you with a lower interest rate or consolidating your debt.

To complete a balance transfer, you typically open a new credit card with a balance transfer offer, pay a balance transfer fee (usually 3-5% of the transferred amount), and provide the new card issuer with the account information for the old card. The new issuer then pays off your old card balance, transferring the debt to your new card.

Jackie Cummings Koski, a certified financial planner and author of F.I.R.E. For Dummies, says that using a balance transfer to pay off a credit card with a higher interest rate can be beneficial.

They offer more time to pay off the debt with no interest. However, Koski advises having a solid plan to pay the balance off before the introductory rate expires.

To take advantage of this option, you must either have a credit card that allows balance transfers or apply for a new credit card with a balance transfer offer.

Benefits of balance transfers

• Lower interest rates: Some cards offer promotional 0% annual percentage rate (APR) periods for balance transfers.
• More time to pay: Promotional periods typically last anywhere from six to 21 months, giving you extra time to pay off the debt without accruing interest.
• Debt consolidation: Combining multiple debts into one can simplify your payments.

Drawbacks of balance transfers

• Balance transfer fees: Most cards charge a fee of 3% to 5% of the transferred amount.
• Limited promotional periods: Once the introductory APR period ends, the standard variable APR applies to any remaining balance.
• Credit limits: You can only transfer up to your available credit limit (which includes existing balances).
• Issuer restrictions: You usually can't transfer balances between cards from the same issuer. The issuer may also decline your transfer request if your account is in poor standing or you’ve recently had excessive balance transfers.

Strategies for effective balance transfers

When using balance transfers to handle your credit card debt, use the following strategies to choose the right card:

• Understand all associated fees to make sure the transfer cost doesn’t outweigh the money you’d save on interest.
• Know the APR and any introductory rates (and their expiration dates).
• Plan for higher monthly payments to pay off the balance before the promotional rate ends.
• Avoid making new purchases with the balance transfer card.
• Allow enough time for the transfer to complete before your payment due date.

Using a cash advance to pay your credit card

Another option is using a cash advance to pay your credit card bill — which involves using your credit card to get cash, which you then use to pay off another card. You can usually do this at an ATM, then use that cash to buy a check or money order

However, most experts suggest avoiding cash advances whenever possible because of the downsides:

• Higher interest rates: Most cash advances incur a much higher APR than purchases or balance transfers (up to 36%).
• Cash advance fees: Typically, 3% to 5% of the amount advanced.
• Immediate interest: Most cash advances don’t include a grace period, so your balance accrues interest immediately.
• Payment allocation: Many issuers apply payments to lower-interest balances first, meaning your cash advance balance could continue accruing high interest for longer.

Using a third-party service to pay your credit card

Currently, third-party services such as Plastiq prohibit paying credit cards. These services focus on paying non-credit-card-related bills such as mortgages, rent, and utilities. They often charge a fee of 2% to 3% of the transaction.

Some money transfer services, such as Venmo, allow you to send money using a credit card, but it charges a 3% fee. Your card issuer usually treats it as a cash advance, so it comes with those associated fees as well.

How paying a credit card with a credit card can affect your credit score

Paying a credit card with another credit card may feel like a quick financial solution, but it can affect your credit score in several ways:

1. Increased debt: Using a credit card means increasing your debt, whether you take out a cash advance or do a balance transfer. More significant debt can hurt your credit score initially and again if you don't pay your bills on time.
2. Higher credit utilization: Your credit utilization is the percentage of your total available credit that you're currently using. It’s one of the most important factors when calculating your credit score. Generally, it’s good to aim for a credit utilization percentage of 30% or less.
3. Potential missed payments: If you're struggling to make payments, you might miss due dates, which can significantly damage your credit score.

Addressing underlying financial issues rather than shuffling debt between cards is always wise. This may mean cutting back on some spending, refinancing certain debts, or finding ways to increase your income.

Alternatives to paying a credit card with a credit card

These options aren't magic solutions — they require effort and discipline. But they're safer bets than playing credit card shuffle, which can leave you worse off than when you started:

• Talk to your credit card company: Many credit card companies have hardship programs or alternatives to help when you cannot make your minimum payment. Find out what’s required to qualify and how to proceed.
• Consider debt consolidation options: If you’re struggling to make your minimum credit card payments, there are several ways to consolidate your debt. Debt consolidation can simplify multiple credit card bills into one payment, and if you qualify for a lower interest rate, it can help you save money over time.
• Revisit your budget: Look for areas where you can cut expenses to free up money for credit card payments.
• Start a side hustle: Consider part-time work or freelancing to increase your ability to make payments.

Frequently asked questions

The bottom line

While using one credit card to pay another might seem like a quick fix, it often leads to more debt and higher interest charges. Before you opt for a balance transfer or cash advance, consider alternatives like communicating with your creditor, exploring debt consolidation, or adjusting your budget. If you choose a balance transfer or cash advance, make sure you understand the associated costs and have a solid plan to pay off the debt.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.