Can you pay off a credit card with another credit card to get points

Paying With Another Credit Card
Balance Transfers
Cash Advance Payoff

Table of Contents Show

When Can You Pay Off a Credit Card With Another
Using a Balance Transfers To Pay Off a Credit Card
How To Do a Balance Transfer
Beware of Scams
Paying Off a Credit Card with a Cash Advance
Balance Transfer
Cash Advance
You Can't Pay Your Monthly Bill With Another Credit Card
What to Do if You Can't Pay Your Credit Card Bill
Check Your Credit Before Applying for a New Credit Card

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It’s never good to have credit card debt, but many consumers who have multiple cards might wonder whether they are able to pay off their credit card with another one. Well, the simple answer is yes, however you can’t pay your monthly bills with another credit card, but instead use a balance transfer or cash advance. Therefore it’s very important to understand how either option works if you’re working to pay down your credit card balance.

When Can You Pay Off a Credit Card With Another

You can pay a credit card bill with another credit card, but it’s not like a regular credit card purchase. This is done by using either a balance transfer or a cash advance.

Using a Balance Transfers To Pay Off a Credit Card

Used strategically, balance transfers can be a great option to save on interest. Many credit cards have 0% APR for balance transfers for the first year, among other perks, as a way to convince you to bring your debt from a competitor to the new card.

Pros

You can use this to your advantage if your current balance is something you can pay off within the first 12 months of having your new credit card.
This way you won’t have to pay interest on your debt.

Cons

If you cannot pay off your balance by the end of the introductory period, then interest will usually be applied to the entire balance that you transferred, even the part you paid off.
If you had been carrying that balance for a while, that means you could end up paying interest on interest.

How To Do a Balance Transfer

You can do a balance transfer over the phone with an agent from your new credit card company or you can do it online. All you need is the account number from your old credit card and some patience. Banks want to make balance transfers as easy as possible, but they can still take some time.

Beware of Scams

Be wary of any agents that call you to take information for balance transfers that you did not initiate, especially if it’s a recorded pitch. Calls like this are usually phishing scams. If this happens and you do want to do a balance transfer, then hang up and call your credit card company back on the customer service number posted online. Otherwise, you can report these scams to the Federal Trade Commission.

Paying Off a Credit Card with a Cash Advance

Take a look at some of the pros and cons of using cash advances.

Pros

The obvious advantage for cash advances is that cash is accepted everywhere.
You can take out a cash advance from one card and use it to pay off another if the card you want to pay off has a brick and mortar branch.
This works with cards that are issued through banks, but for cards that are online only, you would have to deposit the cash after having received the advance, making the whole process a little cumbersome.

Cons

This isn’t a great idea if you have any other options.

Due to the Credit Card Accountability Responsibility and Disclosure Act of 2009, credit card companies can only charge a late fee once per every two statement periods.
Cash advances include an upfront fee, plus a higher interest rate than regular credit card purchases. It will probably cost more to take out a cash advance than to miss a credit card payment.

Takeaway
You can use one credit card to pay another in a roundabout way. Cash advances are rarely a good idea to pay off other credit cards. Balance transfers can save you money if used strategically, but they can increase your money woes as well. Make sure you do all your math before committing.

Diane Fogle is the owner and sole freelance writer at The Little Green Bird. She received her Masters of Library and Information Science from the University of Denver. The research skills gained through that program, combined with a love of learning and intellectual freedom, have led her to a passion for helping businesses communicate with their customers. She lives in Colorado where she hikes with her husband, two young daughters and an old greyhound.

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At Experian, one of our priorities is consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy.

Balance Transfer

Balance transfers involve using a credit card, typically from another card issuer, to pay off an existing credit card balance and effectively transfer the balance from the original card to the new one.

Many credit cards offer an introductory annual percentage rate (APR) on balance transfers—typically 0%, but sometimes the rate is just lower than the standard rate—for a set period, which can range from six to 20 months, depending on the card. Other cards may send out balance transfer checks to existing cardholders, so you don't necessarily have to apply for a new card to get this benefit.

This feature makes it easy to pay down a balance and save on interest charges in the process. Once the promotional period ends, though, the remaining balance will typically be assessed interest based on the card's regular APR until it's paid in full.

If you have a card with a 0% APR balance transfer promotion, paying off your credit card balance before the promo period ends can be an excellent way to save money and achieve your goal of paying off the debt more quickly.

However, keep in mind that balance transfers typically come with a fee of 3% to 5% of the transferred balance. So if you transfer $5,000, you can expect to have between $150 and $250 added to your balance. That fee can still be worth it if the interest savings exceed the upfront charge, but it's important to run the numbers.

Cash Advance

While you can technically use a cash advance to pay off another credit card, it's not advisable. Cash advances typically come with an upfront fee, and it's generally higher than what you'd be charged for doing a balance transfer of the same amount.

You'll also never get an introductory 0% APR on a cash advance. What's more, the interest you get charged—which often comes at a higher rate than the card's regular purchase and balance transfer APR—starts accruing immediately.

In other words, a cash advance could wind up costing you more money than if you were to keep the balance on the original card.

You Can't Pay Your Monthly Bill With Another Credit Card

Although you can request a balance transfer from one card to another, you can't make your monthly payment on one card with a different one.

Of course, you could technically request a balance transfer every month, but the fees and hassle of submitting a request every month likely wouldn't be worth it.

What to Do if You Can't Pay Your Credit Card Bill

If you're having a hard time keeping up with your minimum monthly payment, requesting a balance transfer likely won't solve your problem because you'll eventually need to make a payment on the new card.

There are, however, other potential solutions:

Contact your card issuer. Many credit card companies offer some form of relief to borrowers who can't afford their payments. This assistance may come in the form of forbearance, a reduced interest rate or a modified payment plan. Just keep in mind that this relief may be temporary, so it's typically not a good long-term solution.
Work with a credit counselor. If you've tried working with your credit card issuer and it hasn't helped, consider reaching out to a nonprofit credit counseling agency. A credit counselor can help you evaluate your situation and determine some next steps. In some cases, that may involve a debt management plan. For a modest upfront and ongoing fee, the agency can negotiate with your creditors to potentially reduce your monthly payment or interest rate and get you on a payment plan that helps you avoid defaulting.
Offer to settle your debt. If your situation is dire enough that a debt management plan might not help, you may consider offering to settle for less than what you owe. Because this option can damage your credit score significantly, it's best considered only if you're already far behind on your payments.
File bankruptcy. If you've pursued all other avenues and can't find a solution, filing bankruptcy may be the only option that's left. Due to the devastating effect it'll have on your credit and finances, however, it's important to consider bankruptcy only as a last resort. In the right circumstances, this option could help you get back on your feet.

Check Your Credit Before Applying for a New Credit Card

If you're thinking about applying for a balance transfer credit card to get an introductory 0% APR, it's important to note that these cards typically require good or excellent credit to get approved.

According to credit scoring company FICO, that typically means a credit score of 670 or above. Check your credit score to get an idea of where you stand, and if your credit history needs some work, take the time to improve your credit before you apply. Also, consider using Experian CreditMatch™ to get personalized card offers based on your credit profile.