Can You Pay One Credit Card With Another

Can You Pay One Credit Card With Another – Generally speaking, you can’t pay off the entire balance on one credit card with another credit card unless you transfer the debt from one card to another through a process called a balance transfer. While this method may work in certain financial situations, it doesn’t make sense for everyone. Since transferring debt from one credit card to another may be a bad idea for your unique financial situation, you may want to weigh your options and consider other ways to pay off your credit card balance directly.

This post discusses whether you can pay off one credit card with another and presents other options for paying off credit card debt.

Can You Pay One Credit Card With Another

In some cases, you can use a balance transfer to pay one credit card for another. Balance transfers allow cardholders to transfer their outstanding balances from one credit card to another, often for a fee.

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

Even if it pays indirectly from one credit card to another, carefully consider the terms before going this route. Introductory periods are limited and you may end up paying high interest rates after the period ends.

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

Also, the approved line of credit may not cover the amount owed. Because 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]

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To find out if 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 an APR of 20%, a balance of $2,500, and a monthly payment of $250. It will take 12 months to pay off the debt and you will pay a total of $2,758, including interest and fees of $258.

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

Transferring your balance to a new card can be worth the time and effort in this case. This calculation also assumes that the new card has no annual fee and that the initial APR is 12 months. The introductory balance transfer period may only last for 6 months, so keep this in mind when calculating.

When To Pay Your Credit Card?

Because cards and their issuers have different approval requirements and credit limits, look for the best balance transfer credit cards for your unique situation. Forbes’ balance transfer calculator can help you compare your options.

While you may be tempted to pay for a cash advance with another card, these advances often come with high fees.

In addition to ATM fees and cash advance fees, you may have to pay a higher APR on cash advances than on regular purchases. Because cash advances can add to your debt, don’t use them except as a last resort in a financial emergency.[5]

Instead of opting for a balance transfer or cash advance, you can consider other methods to help you manage your personal finances.

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If you’re in debt and feel like you can’t handle it on your own, the following services can help you regain control of your finances.

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

However, irresponsible financial management can lead to further indebtedness. In addition, personal loans may have additional fees and interest that depend on a number of factors, including your credit score, information on your credit report such as late payments or fees, the amount of the loan and the terms of the agreement. . .

Before you decide to take out a loan to pay off your credit card balance, consider the following factors:

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Instead of just moving your debt balance through bank transfers or personal loans, you can manage your credit card accounts directly using the following strategies. You can also think about paying off debt or saving money first, perhaps setting savings goals or adding side actions.

If you have credit cards with multiple outstanding balances, you may want to start with the debt avalanche method. This debt repayment strategy suggests paying off the card with the highest interest rate first and then moving to the next highest APR.

By focusing on high-interest credit cards, you can potentially avoid racking up more debt (in the form of interest) while you try to reduce it.

You can also try the snowball method when deciding which debt to pay off first. With this repayment strategy, you pay off the card with the lowest balance first to eliminate the smallest and largest debt.

Painful Consequences Of Minimum Payments

While both approaches can help you pay off your card balance, the snowball method allows you to gain momentum and stay motivated as you cross debt off your list.[7]

While you should be making at least the minimum monthly payment on your credit card, paying just that amount can keep you in debt for much longer. There’s even an alert on your credit card statement that tells you how long it will take to pay off the balance and how much interest you’ll pay if you only make the minimum payment. You may be able to eliminate your debt faster — and pay less in interest — if you find a way to pay more than the minimum each month.[7]

While you can indirectly pay one credit card to another through a balance transfer, it doesn’t always make sense. You may want to consider other methods that will directly help reduce your debt.

If you need help getting on the right financial path, have the tools and information to help you understand how to build or rebuild your credit.

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Ana Gonzalez-Ribeiro, MBA, AFC® is an Accredited Financial Advisor® and bilingual personal finance author and educator dedicated to helping the public in need of financial literacy and guidance. His informative articles have appeared in a variety of news outlets and websites, including the Huffington Post, Fidelity, Fox Business News, MSN and Yahoo Finance. He also founded the personal finance and motivation website www.AcetheJourney.com and translated the CFP financial advice of Kathrin B. Hauer for Blue Collar America in Spanish. Ana teaches personal finance courses in Spanish or English on behalf of the V!SE (Working In Support of Education) program and leads workshops for non-profit organizations in New York.

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By submitting my data, I accept the General Business Terms, I agree with the use of electronic documents and signatures, the privacy policy, the publication of consumer reports and the user identification program. If you’re short on cash but have a credit card bill to pay. , then you may be wondering if you can use your credit card to pay with another credit card. Even if the short answer is yes, is it a good idea? This depends on several factors, including the payment method.

Debit Card Vs. Credit Card: What’s The Difference?

There are two credit card payment methods: cash advance and balance transfer. Let’s take a look at the pros and cons of each method, as well as alternatives to paying with a credit card.

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

If you need cash to pay your credit card bill, you can get a cash advance from another credit card. While it can help you avoid late payments and late fees, a cash advance can be expensive. Expect to pay more in interest than you do

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