Can You Pay One Credit Card with Another Credit Card?

If you find yourself short on cash, paying a credit card bill with a credit card may seem like a good idea—but is it possible? The short answer is “yes,” but whether it is a good idea or not depends.

There are two ways to pay off one credit card with another, and you should consider the pros and cons of each as well as other options before using a credit card to pay another credit card.

How to pay a credit card with another credit card

Paying your credit card with a credit card isn’t the same process as simply swiping it, as you would a debit card. You can’t charge your monthly credit card bill to another card as though you were making a purchase. You can pay a credit card with another credit card using a cash advance or a balance transfer. Each payment method will let you move funds from one credit card to pay another.

Use a cash advance from another card

When you need cash to pay off your credit card, one option is to take a cash advance from another card and use it to pay the balance on the first card. 

What is a cash advance? 

A cash advance is a kind of credit card transaction where you take money from your credit card, similar to how you would with a debit card at an ATM. Then, to use the money to pay another credit card, you have to deposit that money in your bank account to make a payment on your credit card bill.

The one downside to this payment method cash advances typically comes with high fees and interest rates. Interest usually begins accumulating the day you take out the cash. In other words, there is no grace period with a cash advance. Cash advances typically carry a higher interest rate than other credit card transactions.

Use a balance transfer credit card

Using one credit card to pay off the balance on another credit card can make sense if you use a balance transfer offer with a 0% intro APR .

What is a balance transfer?

Balance transfers allow you to move the existing balances on one credit card to a new credit card with a lower annual percentage rate (APR) for a limited amount of time. Most credit card companies have balance transfer fees on the transferred balance. A balance transfer fee can range from 3%-5% of the balance transfer amount.

Balance transfers can be a good way to reduce the interest you’re currently paying on a credit card balance, but consider whether you can pay off the transferred balance before the end of the introductory period. If you don’t pay off the balance in full when the intro offer ends, you might end up paying more in fees and interest than you would have if you hadn’t paid the first credit card with the new card. Also, if you plan on using the card with the transferred balance, be mindful of your credit limit. With the newly transferred balance and your regular credit card use, you may run the risk of raising your credit utilization which can impact your credit score.

When to avoid paying one credit card with another

Sometimes, paying off one credit card with another can be a bad idea. It may not be wise if any of the following is true:

• You have a tough time making the minimum payment on your credit card account. 
• You have difficulty sticking to your monthly budget and use your credit card for impulse purchases.
• You don’t plan to stop using the first card, which could then result in credit card balances and interest accruing on both cards.
• The APR on the card you’re using to pay off the other balance is higher than the APR on the card you’re paying off.

Answering “yes” to one or more of these questions may signal a larger issue. You may be struggling with credit card debt or even have “bad credit.” Credit counseling can help you find the best options for your financial situation. You can also contact your credit card issuer to see if you qualify for a plan to pay down your balance.

How to avoid the need to make a credit card payment with another credit card

Think carefully before paying one credit card off with another. If doing so will help you save on interest, consolidate your payments, and pay your debt off faster, it can be a good idea. Add up the credit card fees and interest you could be charged, to make sure transferring your card balance makes good financial sense.

When you use one credit card to pay off another, you can incur additional interest and fees. Instead of making a credit card payment with another credit card, it may be a better idea to develop a financial plan that lets you save cash for an emergency, and helps align your credit card spending to fit your budget.

Q: Is a credit card a good way to pay bills?
A:  A credit card can be a great way to pay your bills if you pay your balance in full every month, on time. Otherwise, it’s best not to pay bills on your credit card that you can’t afford to pay off.

Q: Do balance transfers hurt your credit score?
A:  A balance transfer may impact your credit score temporarily if you open a new credit card account to transfer a balance. But, with good credit habits and on-time payments, you should see your score quickly go back up. If you intend to use the card with the newly transferred balance, your credit score may be impacted if your credit utilization goes up.