Can You Pay A Credit Card With Another Credit Card

Can You Pay A Credit Card With Another Credit Card – If you’re short on cash but have a credit card bill to pay, you may be wondering if you can pay off your credit card with another credit card. While the short answer is yes, is it a good idea? This depends on several factors, including the payment method.

There are two ways to pay by credit card: cash advance and balance transfer. We explore the pros and cons of each method and the alternatives to using one credit card to pay for another.

Can You Pay A Credit Card With Another Credit Card

A cash advance or balance transfer can help you cover part of your balance (such as the minimum payment) or pay off your entire credit card balance. Each has its advantages and disadvantages.

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If you need cash to pay your credit card bill, you may be able to get a cash advance on another credit card. While they can help you avoid missed payments and late fees, a cash advance can be expensive. Expect to pay a higher interest rate than you would on your purchase, a cash advance fee (usually a percentage of the withdrawal amount), and any applicable ATM fees. Additionally, interest on cash advances begins accruing on the day the funds are withdrawn from your account, and you may lose the interest grace period on purchases, meaning interest on new purchases begins accruing on the day they are deposited into your account. .

A balance transfer allows you to move debt from one credit card to another. If both credit cards have balances, consolidating the balances from two credit cards into one can make repayment easier.

Transferring your high-interest credit card balance to a lower-interest card can lower your interest payments and help you pay off your debt faster. Some credit card companies, including , may offer special rates for a limited time, such as 0% interest on balance transfers.

However, you can pay a one-time balance transfer fee as a percentage of the transferred amount. If you cannot pay off your transferred balance before the end of the grace period, you will begin accruing interest at the regular rate.

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The decision to repay your loan depends on your unique financial situation. If you struggle with overspending or regularly paying your monthly credit card bill, a cash advance or balance transfer may not be the answer.

Borrowing at high interest rates by withdrawing cash from another card is risky if you can’t pay it back right away – this payment method can be the best in emergency situations. While consolidating credit card debt via a balance transfer can help you manage your payments responsibly (especially if you pay off the debt before the interest rate expires), you have to decide if the potential reward is worth it. Alternatives to paying by credit card with another credit card

Instead of paying off one credit card with another, it may be better to create a financial plan to help you save money for unexpected expenses and balance your credit card spending with your budget. According to the Consumer Financial Protection Bureau, one of the easiest and most effective strategies for paying off debt is to cut back on spending. You can try using your mobile banking app to set a spending alert or personal spending limit. And if paying your monthly credit card bill becomes difficult or even impossible, you may want to consider credit card debt relief.

In general, it’s important to think twice before using one credit card to pay for another. Although this may seem like a convenient solution, there are drawbacks to consider and options to consider.

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You are leaving and entering a website operated by a third party. We link to this site for your convenience or because we have a relationship with a third party. The Bank does not offer products or services on the Website. Review the privacy and security policies and terms of the website you are visiting. The Bank does not guarantee the accuracy of the financial tools available on the site or their applicability to your situation. Consult a financial advisor for personal advice regarding your financial situation. Typically, you can’t pay off the entire balance on one credit card with another credit card unless you move the debt from one card to another in a process called a balance transfer. Although this method may work in some financial situations, it doesn’t make sense for everyone. Since moving debt from one credit card to another may not be a good idea for your unique financial situation, you may want to evaluate your options and consider other ways to pay off credit card debt directly.

This post discusses whether you can pay off one credit card with another and offers other ways to pay off credit card debt.

Can You Pay A Credit Card With A Credit Card?

In some cases, you may be able to pay from one credit card to another via a balance transfer. Balance transfers allow cardholders to transfer outstanding debt from one credit card to another, often for a fee.

Credit card issuers often offer introductory periods on new credit cards that include zero interest or low APR (annual percentage rate) balance transfers, giving you the opportunity to consolidate your debts into one account with your business.

Although this provides an indirect option to pay from one credit card to another, you should carefully evaluate the terms before choosing this method. The introductory periods are limited and you may end up paying high interest after the period ends.

Credit card companies usually require certain criteria for a balance transfer, including a good credit score. If you have bad credit, it may be difficult for you to qualify.

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In addition, the approved credit limit may not cover the amount you owe. Since lenders have different requirements and terms, consider shopping around and reviewing the terms and conditions of different credit card issuers before applying for a balance transfer card.[2]

To determine whether a balance transfer will save you money in the long run, you need to do the math.

Let’s say your current credit card has a 20% APR, you have a balance of $2,500, and you pay $250 a month. It will take 12 months to pay off your debt and you’ll pay a total of $2,758, including $258 in interest and fees.

Let’s say your new balance transfer card has a 5% APR (assuming the original 0% APR expires in 12 months), plus a 5% balance transfer fee, and you pay $250 per month. It will take 11 months to pay off your balance transfer debt and you’ll pay a total of $2,625.

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Transferring the balance to a new card may be worth your time and effort in this case. Additionally, this calculation assumes that the new card has no annual fee and that the introductory APR is good for 12 months. The introductory period for a balance transfer can last up to 6 months, so be sure to factor this into your calculations.

Since cards and issuers have different approval requirements and credit limits, find the best balance transfer credit cards for your unique situation. Forbes Balance Transfer Calculator can help you compare options.

Although you may be tempted to pay off your debt by making a cash advance to another card, these cash advances often come with hefty fees.

In addition to ATM fees and cash advance payments, you may have to pay a higher annual interest rate for your cash advance than for regular purchases. Since cash advances can increase your debt, avoid using them except as a last resort in a financial crisis.[5]

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Instead of choosing a balance transfer or cash advance, you can consider other options to help you get your personal finances in order.

If you have debt that you feel you can’t handle on your own, the following services can help you regain control of your finances.

If you have good credit, consider getting a personal loan to pay off credit card debt. This idea makes sense if you can get a personal loan at a lower interest rate than your credit card.

However, if you do not manage your money responsibly, it can lead to an increased debt burden. Personal loans may also come with additional fees and interest rates that depend on a number of factors, including your creditworthiness, information in your credit report (such as late payments or debits), the loan amount, and the terms of the loan. lend. Your contract.

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Before you decide to take out a loan to pay your credit card bill

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