Can You Pay a Credit Card With a Credit Card? (2023)

Your debt is stacking up, and you can’t make the minimum paymentson your credit card bill. You’re running out of options…when, gleaming from the depths of your wallet, you see a different credit card.

Or maybe you’re planning a big trip, and are hoping to earn the necessary points by paying for everything — including your other credit card bills — with your rewards card.

In either situation, you have the same question: Can you pay a credit card with a credit card?

How Do You Pay a Credit Card With Another Credit Card?

The short answer: You can’t. At least probably not in the way you’re thinking. You can’t just log in to your Discover account and pay your bill by typing in your Amex number, and that’s true for most if not all issuers.

You can, however, pay your credit card with a credit card in two other ways: with a cash advance (which we don’t recommend), or by transferring your balance to another card.

Cash advance or convenience check

We’re going with the worst method first.

You know those “convenience checks” your card issuer sends in the mail? You could either cash one of those —or use your card to take a cash advance from the ATM —then deposit the money into your checking account and use it to pay your bill.

While it sounds easy, it’s a bad idea. Cash advancesare expensive: They usually come with fees of up to 5% of whatever you withdraw, and they immediately start accruing interest charges (often at a rate of around 25%).

If you took out $1,000, for example, you’d owe about $70 in fees by the end of the month, and that amount would continue to increase each day until you paid off your debt.

Balance transfer

A better alternative? Pay your credit card with a balance transfer.

(Video) Can you pay credit card bill with another credit card?

Just like they sound, these involve transferring part or all of your balance from one credit card to another. You could, for example, transfer the balance from your Chase card to a new card from Citi. You usually can’t transfer balances between cards at the same bank.

Balance transfers can be an attractive option when the new card has a lower interest rate (APR)than your current card.In fact, many balance transfer cardsoffer 0% interest on transferred balances for a certain time period.

Not only can balance transfers tide you over when money is tight, but they can also provide an effective way to temporarily avoid paying intereston the credit card debt you already have.

5 Things To Know About Balance Transfers

Here are a few things you should know about transferring a balance.

1. They’re not free

When you transfer a balance to a new card, that card’s issuer will usually charge a fee that’s 2-5% of the balance transferred. So, if you transfer a $1,000 balance, you could owe between $20 and $50 in fees, which the issuer usually adds to the new balance.

A few cards, however, don’t charge balance transfer fees if you complete the transfer within a certain period of opening the card.

2. They could save you interest

Although it comes with fees, transferring a balance could ultimately save you money if you’re paying a high interest rate on your credit card debt.

Let’s say you have one card, cleverlynamed Card A.

Card A

  • Balance: $10,000
  • APR: 18%
  • Minimum payment: $400

If you just make the minimum monthly payments on Card A, it’d take you more than 13 years and almost $6,000 in interest before you pay it off. Not cool.

But then you get a balance transfer offer in the mail for a new card: Card B.

(Video) Can I Pay My Credit Card With Another Credit Card?

Card B

  • APR: 0% for 18 months
  • Balance transfer fee: 3% of the balance transferred

If you transfer your $10,000 balance from Card A to Card B, it’ll cost you $300 in fees. But if you manage to pay $572 per month on Card B, therefore paying off the entire balance before the introductory APR ends, you won’t pay any interest.

In other words? After the balance transfer fee, you’ll have saved $5,700.

3. Their low APRs won’t last forever

Most cards designed for balance transfers have a low introductory APR — often 0%. The interest-saving strategy above works best if you pay off your full balance before the introductory period ends.

After the intro period is up (often around 12 to 18 months), your card issuer will start charging a regular interest rate— which could be as high as 18–22% or more. So if you don’t pay off your balance by that point, you’ll be in the same boat you were before.

As with any card, it’s also essential to pay every bill on time. Just one late payment could trigger the credit card issuer to end your intro APR period. That could leave you with an extra high penalty APR of about 30%!

If you can’t pay off a balance in the specified time period, you may be able to make another transfer to a different low-interest card. The better your credit, the more likely you are to qualify for these offers. That said, you’ll have to decide if another transfer is worth the fees.

4. They consider your credit

A balance transfer card is just like any other credit card; it’s just called that because it has features like low APR or low fees that make it attractive for balance transfers.

So when you apply for a balance transfer card, the card issuer will perform a hard inquiry on your credit reports to see if you qualify.For the best balance transfer cards, you’ll need strong credit scoresto get approved.

If you have bad credit, unfortunately, you might not qualify for any balance transfer offers —in which case you’ll have to try one of the alternatives mentioned below.

Also worth noting: Balance transfer cards come with a credit limit that’s based on your creditworthiness. In some cases, this new credit limit won’t be big enough for you to transfer your full credit card balance from your original card. Some issuers may also set limits on how much debt can be transferred.

(Video) How To Pay Your Mortgage With Your Credit Card... AND Pay Your Card With Your Card

5. They could signal other financial issues

Although balance transfers can be a savvy financial tool when used correctly, they can also be a sign of bad financial habits.

Emergencies happen to all of us, but if you’re often scrambling for ways to pay your bills, it might be time to take a critical look at your finances.

Here’s one situation you definitely don’t want to end up in: transferring your balance from Card A to Card B, and then racking up additional debt on Card A.

If you’re worried about losing control, you could cut up Card A and delete its number from any saved online accounts. You could also close the card, but that will reduce your available credit — and could therefore lower your credit scores.

Can You Pay a Credit Card With a Credit Card Without Paying a Fee?

Technically, yes.

If you use a balance transfer card with a 0% APR offer and no balance transfer fee, and you end up paying the full balance before the introductory APR offer expires, the entire process can be totally free. But you’ll be charged interest starting when the introductory offer ends if you can’t pay the balance within that timeframe.

Credit cards without balance transfer fees are sometimes hard to come by, but even if you’re stuck paying a transfer fee, you’ll likely end up paying much less than if you’d paid the balance with a cash advance.

Can You Pay a Credit Card With a Credit Card To Get Points?

We’ve got some bad news for all you points junkies out there: Unfortunately, you typically can’t earn rewards when transferring a balance.

So if you’ve already signed up for a new card and are trying to meet the minimum spend, consider paying your rent with a credit card. Although you’ll pay fees, it could help you snag that lucrative bonus.

Alternatives to Paying a Credit Card With a Credit Card

While balance transfers work in certain situations, they’re not your only option.

(Video) How Do I Tackle My $13,000 Credit Card Debt?

Here are some alternative ways to pay off credit card debt:

Personal loans

Since theyoften have lower interest rates than credit cards, it sometimes makes sense to use personal loans to pay off credit card debt.

If you pay off multiple cards with one personal loan, you’ll also consolidate several statements and due dates into one monthly bill. And, because personal loans are “installment loans” — rather than “revolving” like credit cards — this approach could boost your credit scores, too.

Home equity loans

For homeowners with some equity in their mortgage, a little-known strategy is to pay your credit card with a home equity loan (HELOC).

If going this route, proceed with extreme caution. Paying a credit card with a HELOC means putting up your house as collateral for your debt — which means you could lose your house over missed payments.

0% APR credit cards

Instead of transferring Card A’s balance to a new card — and therefore paying balance transfer fees —you could open up a 0% APR card(Card B) and charge your everyday expenses to it.

Then, after making just the minimum payment on Card B, you could use the cash you’ve freed up to pay off Card A (and its higher interest rate).

As with the HELOC method, this strategy comes with risk. You should only pursue it if you know you’ll pay off the 0% APR card before its introductory period is over. Otherwise, you’ll end up in a worse situation than you’re in now.

Debt avalanche or debt snowball

These are two different debt payoff strategies:

  • Debt avalanche:Pay off your loans in order of interest rates, from the loan with the highest interest (probably your credit card) to the lowest interest (probably your mortgage or student loans).
  • Debt snowball:Pay off your loans in order of balance owed, from the loan with the lowest balance to the loan with the highest balance.

Ready To Pay a Credit Card With a Credit Card?

Be responsible with your balance transfer: Make on-time payments on your new card, and strive to pay off the balance before the intro APR period ends. If you keep your old card open, don’t put any additional charges on it.

(Video) YNAB Credit Card Guide (All You Need to Know)

Paying a credit card with a credit card can be helpful in a pinch — as long as you take steps to avoid falling deeper into credit card debt.

FAQs

Can I use a credit card to pay a credit card? ›

Suppose you have high-interest balances on one or multiple credit cards and you're looking to consolidate at a lower APR. You might be asking yourself, "Can you pay off a credit card with another credit card?" In short — yes, you can pay a credit card off with another credit card, there's more than one way to do it.

How do you pay a credit card with another credit card? ›

If you're looking to pay off one credit balance using another card, this generally isn't possible. Banks don't allow you to pay your credit card balance using another credit card. Typically payments via check, electronic bank transfer or money order are the only acceptable methods of payment.

Does paying bills with a credit card hurt your credit score? ›

As long as you pay your credit card bill on time and in full each month, you generally won't see a negative impact on your credit score. In fact, regularly paying your credit card on time shows that you're a responsible borrower.

Can I pay off my Capital One credit card with another credit card? ›

First, you should know that at Capital One, you can't directly pay your credit card with another credit card. That means when you go to make a credit card payment on your Capital One account, you won't be able to enter another credit card number to complete the payment.

What happens when you pay a credit card with a credit card? ›

Paying one card with another is heading down a slippery slope of debt. Paying the balance on one of your credit cards with another credit card is possible. But when you make a credit card to credit card payment, you're not reducing debt — you're simply moving it from one account to another.

Should I use credit cards to pay bills? ›

Be aware of any convenience fees you'll incur by paying your bills with credit cards. It's best to use credit only for products and services that won't charge a fee, and using cash, debit or bank transfer for the rest. And, of course, use a credit card only if you know you can pay off the balance each month.

How much balance should I keep on my credit card? ›

A good rule of thumb is to keep your credit utilization under 30 percent. This means that if you have $10,000 in available credit, you don't ever want your balances to go over $3,000. If your balance exceeds the 30 percent ratio, try to pay it off as soon as possible; otherwise, your credit score may suffer.

Should you leave a small balance on your credit card? ›

According to the CFPB, it's a myth that you should leave a balance on your credit card to help your credit. If your card has an introductory 0% APR offer, you can consider paying off your balance over time because it's not accruing interest.

Does not paying off your credit card in full hurt your credit? ›

Carrying a balance does not help your credit score, so it's always best to pay your balance in full each month. The impact of not doing paying in full each month depends on how large of a balance you're carrying compared to your credit limit.

Can you pay a credit card with a debit card from another bank? ›

Paying Credit Card Bill Using A Debit Card (Offline)

However, you cannot use a debit of one bank to pay credit card bill of another bank. And unlike ATM cash withdrawals, credit card payments must be done at the respective bank ATMs not at any other bank ATMs.

Will my credit score go up if I pay my credit card in full? ›

If you're already close to maxing out your credit cards, your credit score could jump 10 points or more when you pay off credit card balances completely. If you haven't used most of your available credit, you might only gain a few points when you pay off credit card debt. Yes, even if you pay off the cards entirely.

What kind of bills can you pay with a credit card? ›

The short answer is, entertainment and nonessentials can usually be paid with a credit card with no fees. Services, utilities, and taxes, can often be paid with a credit card but with a processing fee. Loan payments, are usually check or bank withdrawal payment only.

Is 700 a good credit score? ›

Your score falls within the range of scores, from 670 to 739, which are considered Good. The average U.S. FICO® Score, 714, falls within the Good range.

Do credit card companies like when you pay in full? ›

Yes, credit card companies do like it when you pay in full each month. In fact, they consider it a sign of creditworthiness and active use of your credit card. Carrying a balance month-to-month increases your debt through interest charges and can hurt your credit score if your balance is over 30% of your credit limit.

Is it better to pay with credit card or debit card? ›

“When in doubt, it's definitely safer and less risky to use credit in most cases.” Credit cards have other advantages, such as helping consumers build their credit scores. This can be accomplished by paying off your balance in full each month — something that debit cards can't offer.

Is it better to pay off a credit card or a bank loan? ›

Credit cards generally have higher interest rates than most types of loans do. That means it's best to prioritize paying off credit card debt to prevent interest from piling up.

Does using credit card to pay bills build credit? ›

Spending within your credit limit and paying your bills on time every single month are just a few ways you can improve your credit score, simply by using your credit card responsibly.

How much of a 500 dollar credit limit should I use? ›

You should aim to use no more than 30% of your credit limit at any given time. Allowing your credit utilization ratio to rise above this may result in a temporary dip in your score.

What is a good credit limit to have? ›

A good credit limit is above $30,000, as that is the average credit card limit, according to Experian. To get a credit limit this high, you typically need an excellent credit score, a high income and little to no existing debt. What qualifies as a good credit limit differs from person to person, though.

How much of a $300 credit limit should I use? ›

A good guideline is the 30% rule: Use no more than 30% of your credit limit to keep your debt-to-credit ratio strong. Staying under 10% is even better. In a real-life budget, the 30% rule works like this: If you have a card with a $1,000 credit limit, it's best not to have more than a $300 balance at any time.

What is the trick to paying off credit cards? ›

The 3 most common credit card payoff strategies
  1. Paying only the minimum. The least aggressive debt payoff method is making only the minimum payments. ...
  2. Paying more than the minimum. Paying more than the monthly minimum helps accelerate your debt payoff and is a more active approach. ...
  3. Using a balance transfer credit card.

How much is too much of balance on credit card? ›

If your total balance is more than 30% of the total credit limit, you may be in too much debt. Some experts consider it best to keep credit utilization between 1% and 10%, while anything between 11% and 30% is typically considered good.

What bills should be paid off first? ›

With the debt avalanche method, you order your debts by interest rate, with the highest interest rate first. You pay minimum payments on everything while attacking the debt with the highest interest rate. Once that debt is paid off, you'll move to the one with the next-highest interest rate . . .

Will my credit score go up if I pay my bill? ›

Paying off credit card debt is smart, whether you zero out your balance every month or are finally done paying down debt after months or years. And as you might expect, it will affect your credit score. Whether you are chipping away at a balance or eliminating it with one big payment, your score will likely go up.

Why does my credit score drop when I pay off a credit card? ›

Why credit scores can drop after paying off a loan. Credit scores are calculated using a specific formula and indicate how likely you are to pay back a loan on time. But while paying off debt is a good thing, it may lower your credit score if it changes your credit mix, credit utilization or average account age.

Does your credit score go up when you pay your bill? ›

Paying your bills on time Is one of the most important steps in improving your credit score. Pay down your credit card balances to keep your overall credit use low.

How can I raise my credit score to 800? ›

How to Get an 800 Credit Score
  1. Pay Your Bills on Time, Every Time. Perhaps the best way to show lenders you're a responsible borrower is to pay your bills on time. ...
  2. Keep Your Credit Card Balances Low. ...
  3. Be Mindful of Your Credit History. ...
  4. Improve Your Credit Mix. ...
  5. Review Your Credit Reports.
12 Mar 2022

How can I raise my credit score 100 points overnight? ›

How To Raise Your Credit Score by 100 Points Overnight
  1. Pay Off Your Delinquent Balances.
  2. Keep Credit Balances Below 30%
  3. Pay Your Bills on Time.
  4. Dispute Errors on Your Credit Report.
  5. Set up a Credit Monitoring Account.
  6. Report Rent and Utility Payments.
  7. Open a Secure Credit Card.
  8. Become an Authorized User.
2 Sept 2021

What raises credit score the most? ›

One of the best things you can do to improve your credit score is to pay your debts on time and in full whenever possible. Payment history makes up a significant chunk of your credit score, so it's important to avoid late payments.

What is the safest way to pay a credit card bill? ›

The best way to pay your credit card bill is by paying the statement balance on your credit bill by the due date each month. Doing so will allow you to avoid incurring any interest or fees. In case you weren't aware, you do not automatically pay interest simply by having a credit card.

What is the best strategy when paying credit card bills? ›

The 3 most common credit card payoff strategies
  • Paying only the minimum. The least aggressive debt payoff method is making only the minimum payments. ...
  • Paying more than the minimum. Paying more than the monthly minimum helps accelerate your debt payoff and is a more active approach. ...
  • Using a balance transfer credit card.

What bills build credit fast? ›

Keeping up with monthly payments on your credit card, auto loan, student loan, medical bills, rent and monthly utilities could help build your credit.
  1. Credit card payments. ...
  2. Auto loan payments. ...
  3. Student loan payments. ...
  4. Medical payments. ...
  5. (Sometimes) rent, phone and utility payments.
21 Jul 2022

How can I raise my credit score 40 points fast? ›

Here are six ways to quickly raise your credit score by 40 points:
  1. Check for errors on your credit report. ...
  2. Remove a late payment. ...
  3. Reduce your credit card debt. ...
  4. Become an authorized user on someone else's account. ...
  5. Pay twice a month. ...
  6. Build credit with a credit card.
19 Oct 2022

How can I raise my credit score 200 points in 30 days? ›

How to Raise Your Credit Score by 200 Points
  1. Get More Credit Accounts.
  2. Pay Down High Credit Card Balances.
  3. Always Make On-Time Payments.
  4. Keep the Accounts that You Already Have.
  5. Dispute Incorrect Items on Your Credit Report.

How fast can you raise your credit score by paying off credit cards? ›

How fast can you raise your credit? Someone with a low score is better positioned to quickly make gains than someone with a strong credit history. Paying bills on time and using less of your available credit limit on cards can raise your credit in as little as 30 days.

What credit score is good to buy a house? ›

It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.

What bills hurt your credit? ›

Here are the main six bills to be aware of when building up your credit score.
  • Rent Payments. Before property management platforms, renters were unable to report rent payments to credit bureaus to build their credit health. ...
  • Utility Bills. ...
  • Auto Loan Payments. ...
  • Student Loan Payments. ...
  • Credit Card Payments. ...
  • Medical Bills.
7 Feb 2022

What is considered a good credit score? ›

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

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2. 10 Things You MUST use a CREDIT CARD to Pay For
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