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How To Use One Credit Card To Pay Another

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Can You Pay A Credit Card With Another Credit Card

Credit Card Debt Information : Can I Use a Credit Card to Pay Another Credit Card?

While it is technically possible to take out a cash advance on one credit card and use that cash to pay another credit card, this is rarely a good idea.

Cash advances can be extremely expensive since they come with both cash advance fees and high interest rates. Plus, any cash you take from a credit card becomes new debt. If youre struggling to pay off your credit card without borrowing from another credit card, its time to take a serious look into debt management options.

What You Need To Consider Before Transferring A Balance To Another Card

The challenge? That 0% rate doesnt last forever. After the teaser period ends, the cards regular interest rate kicks in. That could be high, 19%, 21% or higher depending on the card.

If you dont pay off your transferred debt by this time, the new interest rate will be attached to whatever is left. Youll then be stuck paying high interest on your credit card debt again.

You might even complete a balance transfer and then run up debt on your first card even while trying to pay off the debt you transferred. This can leave you with more debt than you faced before you completed your balance transfer.

Jon Dunlin, Philadelphia-based founder of MoneySmartGuides.com, said the biggest mistake people make when using a balance transfer is they dont address the reasons why they are overspending.

Dunlin has experience with this. He once ran up $10,000 of credit card debt, not realizing he was overspending largely because he suffered from depression. Once he tackled his depression, he stopped overspending and committed to paying down his debt.

But while he was overspending, the balance transfer he completed did nothing to reduce his credit card debt. Like too many others, Dunlin completed his balance transfer and then ran up new debt on his first card.

As great as the motivation might be to get out of debt, a lot of people dont address why they get into debt in the first place. If you dont address the underlying issue, youll start spending on that first card again.

Transfers To Existing Cards

Balance transfers can also be done with an existing card, especially if the issuer is running a special promotion. This can be tricky, however, if the existing card already has a balance that the transfer will only increase.

Suppose a cardholder owes $2,000 on a card with a 15% APR before they transfer a balance of $1,000 from a second card. The balance transfer rate offered is 0% for six months. The cardholder pays off $1,000 in six months, but because the 15% portion of the credit card debt is paid first, the 15% APR rate for six months applies to the $2,000 that was untouched by payments. Meanwhile, the card the $1,000 was transferred from has an APR rate of 12%, representing a loss of 3%.

Also consider what adding a big sum to a card will do to the that is, the percentage of available credit that’s been usedwhich is a key component of your credit score. Say you have a card with a $10,000 limit and a $1,250 balance. You are using 12.5% of your credit limit. If you then transfer $5,000, creating a total balance of $6,250, you’re now using 62.5% of your credit limit. This increase in a balance on one card could hurt your credit score and ultimately cause the interest rate to rise on this and other cards. This may, of course, be mitigated by the $5,000 lower balance on the higher-interest card from which the transfer was made.

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You Might Not Be Able To Transfer All The Debt From A Specific Credit Card

Your new card will come with a credit limit. You wont be able to transfer more than that limit.

If you owe $4,000 and your new card comes with a maximum credit limit of $3,000, you wont be able to transfer your entire balance. The provider of your new card might not even let you transfer enough debt to hit your credit limit. This will further limit the amount you can transfer from one card to another.

What Is A Balance Transfer

Can you use one credit card to pay off another ...

Balance transfers are a great option for individuals looking to move existing debt from one card to another that has a lower interest rate and other financial incentives. Many people will opt for a card where they can get the most perks and other financial benefits, like cash back on everyday spending and better rewards programs. A balance transfer is exactly what it sounds like: Your balance on one card will be transferred to another for a fee. Before deciding to go this route, do the math. Oftentimes, with fees and reduced interest rates, you may end up paying something similar to what you owed before. There are also several other pros and cons to be aware of.

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Using One Credit Card To Pay Another Instant Credit Boost

Im sure youve heard the term before. Its that 3 digit number that follows you & your financial life every where you go. You need it to get authorized for loans, credit cards, houses, home mortgages & more! And due to the fact that you never actually see it, its normally out of sight, out of mind however this number is something that requires to be taken major.

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Thankfully, theres things you can do to secure and educate yourself on the topic. From techniques to provide you a near-instant increase to your score to comprehending what a credit score even is from a essential level, were going to walk you through this step by step. Prepare yourself to take control of your financial flexibility once and for all!

Cons Of Paying A Credit Card Bill With Another Credit Card

Paying a credit card by using another may not be everyone’s first choice. It might not be the best option if you:

  • Don’t intend to stop using the first card: If you pay a balance using another credit card, you should cease using the card with the now zero balance until you can pay off the higher balance.
  • Struggle to make credit card payments: Paying off a credit card using another credit card may not be wise for anyone who is already struggling to make on-time payments. Consolidating the debt doesn’t mean lower overall payments.
  • Have poor spending habits: If you overspend or struggle to stick to a budget, you may end up adding to your balance as you work to pay it down.

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How To Transfer A Balance

When you apply for a new low or zero-interest credit card, youre given the opportunity to transfer any other balances on other cards at that point. Or you can contact your credit card provider to arrange a transfer.

Youll need:

  • the details of the card you want to transfer
  • the card number and the provider
  • the balance you want to transfer.

You might be able to do this online.

Balance Transfer Cards Arent Always The Best Option

Can I Pay My Credit Card With Another Credit Card?

There are a few reasons you should think twice before applying for a balance transfer card. The first is that theres no guarantee youll get a high enough credit limit to transfer your full balance.

And even if you get a high credit limit, most cards have limits on balance transfers that may be lower than your available credit. Also, most issuers wont allow you to transfer balances from cards that you already have with them.

Your credit limit is typically determined based on certain , including the following:

  • Income
  • Housing costs

Second, applying for a balance transfer card could hurt your credit scores due to the hard inquiry. For example, every time you apply for a new credit card, youll likely receive a hard inquiry on your credit reports. A hard inquiry will lower your scores right away, but it usually only affects your scores for a short period of time.

And while the inquiry may remain on your reports for up to two years, it likely wont affect your scores for that period of time. Also, if you end up closing the card you transferred the balance from, your scores could go down, as this will affect your and the age of your credit history.

Lastly, you may not get approved for a balance transfer card if your credit scores are too low. Before you apply for a card, check out , a feature designed to help you gauge the likelihood of getting approved for some specific credit cards.

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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.

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. However, watch out for cash advance fees and possibly a higher interest rate, which also may start accruing from the day you take the cash advance. Cash advances typically have the highest APR on credit cards, so using a cash advance to pay off another credit card will likely result in paying a higher interest rate.

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What About A Direct Debit

Can you set up a direct debit to pay off one credit card with another? To create a direct debit, you are typically required to complete a direct debit request form to permit the receiving party to draw the payment.

While internet service providers, utilities providers and other such companies may allow you to set up a direct debit payment from a credit card, you will usually find credit card providers themselves require the source of the direct debit transfer to be a bank account rather than another credit card.

After Getting A Cash Advance: Yes But Its A Bad Idea

All About the Capital One Credit Card

It’s possible to use your credit card to get cash out of an ATM, then use that money to pay off another card. But such a transaction a cash advance typically comes with high fees and interest rates, making it an incredibly expensive way to get fast cash.

It’s also not the way to go if raking in rewards is your goal. Cash advances generally don’t earn rewards. And even if they did, the high fees and interest charges associated with them would likely eclipse the value of any benefits you might earn.

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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.

You Dont Know How Much Credit Youll Get

If youre looking to transfer $10,000 in debt, theres no guarantee youll be approved for that amount on a new card. If youre looking for the longest runway possible to pay down your debt, and the amount youre approved for falls short of what youre looking to transfer, then youre stuck with two card balances to keep track of and make payments on.

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How To Do A Credit Card Balance Transfer

How do credit card balance transfers work? After getting approval for a card with a 0% interest balance-transfer offer, find out whether the 0% rate is automatic or depends on a credit check. The next step is determining which balances to transfer cards with high interest rates should come first.

Next, calculate the transfer fee, which is typically 3% to 5% . Is there an amount cap on the fee? If not, that can make transferring larger balances worthwhile. Also check the on your new card before you initiate a transfer. The requested balance transfer cannot exceed the available credit line, and balance-transfer fees count toward that limit.

When The Introductory Apr Period Is Almost Over

How To Pay Multiple Credit Cards Off At One Time! (Velocity Banking)

Your credit card company will start charging a higher rate on your remaining balance when the intro APR period ends, so its essential to know when that will happen. Mark the final day of your introductory APR period on your calendar. You may want to set up an alert on your phone to remind you a week or two before the introductory period is up.

If youre able to pay off the remainder of your balance while youre still in the introductory period, thats ideal. Youll avoid a jump in interest when the promotional period ends, and the credit card debt you consolidated will be taken care of.

If paying off the entire balance is not possible, you could transfer the balance to another card with an introductory APR offer. In this case, youll need to once again come up with a plan to repay the consolidated debt.

Alternatively, you could try to negotiate the APR with the credit card company. However, even if the company agrees to lower the rate, you probably arent going to get an APR thats as good as the promotional offer.

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Theres Often A Balance Transfer Fee

Balance transfer fees typically range from 3% to 5% of the amount being transferred. If you transfer $10,000 to a card with a 0% APR offer but has a 3% balance transfer fee, youll add another $300 onto your debt. If possible, choose a card without any balance transfer fees.

That said, even if you must pay a balance transfer fee, it could still help you save money overall depending on how much debt you have, what your cards interest rate is and how long you need to pay off your debt. It always makes sense to do the math for your personal situation before making a decision.

Can I Pay A Credit Card Bill With Another 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. However, each method comes with its own pros and cons.

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Select A Balance Transfer Card

Use a balance transfer card calculator to see how much youll pay in fees and interest for each card youre looking at, and find out how long it will take you to pay off your balance.

You can also use a to check how much interest you will owe if you leave your balances on your existing cards. Compare this to the results for the balance transfer cards to estimate how much you would save with different options.

The right balance transfer card for you will depend on your budget and goals.

How To Use A Balance Transfer To Pay Off A Credit Card

Can You Pay Off 1 Credit Card With Another? It

A balance transfer is the only time you can use one credit card to pay off another. And the only scenario where it makes good financial sense to pay off a credit card bill this way is if youre shifting a credit card balance to one with a lower interest rate, especially to a card that has an introductory 0% APR offer.

When you transfer a balance from a card thats being charged interest to one that has no interest for a limited period of time, you can save money. Heres why.

Say you have a $10,000 balance on a card that carries an 18% APR. If you do nothing for a year, youll have added an additional $1,800 to your debt. If you transfer that balance to a card with an introductory 12-month 0% APR offer instead, you wont be charged any interest for that year. But there are some nuances to the process.

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Can I Earn Points By Paying A Credit Card With Another Credit Card

Since balance transfers and cash advances aren’t considered qualifying purchases, credit card issuers don’t mark them as points eligible activities.

If you choose to move forward with a balance transfer or cash advance, make sure it’s a smart overall financial decision. When in doubt, contact a financial professional for help in choosing the best path forward.

And No It Wont Earn You Any Reward Points

Paying one card with another is heading down a slippery slope of debt.

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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, youre not reducing debt youre simply moving it from one account to another. Whether or not this is a good idea depends on factors such as interest rates, your overall credit and debt situation and whether you have a plan or are scrambling to keep up with payments.

How can I pay my credit card bill with another credit card?

Typically, you cant simply pay your credit card bill with another card as if you were paying your utility or phone bill. Credit card companies dont usually accept credit cards as a regular form of payment, in part because it opens the door for debt to revolve through your accounts in an infinite loop. But that doesnt mean you cant use one credit card resource to pay off or make payment on anothers balance. Cash advances and balance transfer offers are two ways you can make this happen.

How do you pay a credit card with a cash advance?

Once you get the cash, you have to convert it into a format that lets you pay your credit card bill. You can deposit it into your checking account or buy a money order to mail to your credit card company.

When should I pay my credit card balance?
Can you pay a credit card with a credit card to get points?

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