While you typically can’t directly pay a credit card bill with another credit card, there are options that may allow you to pay your bill through other means. Namely, two possible methods with credit cards are balance transfers and cash advances. However, you may need to meet certain requirements to use these tools. It’s a good idea to consider the cons beforehand, too.
Let's explore the options you may have to pay a credit card with another card, how they work and the potential drawbacks.
What are indirect ways to pay a credit card with another card?
Balance transfers and cash advances may be used to pay for another credit card bill. Here’s a quick overview of these 2 options:
Balance transfer
A balance transfer credit card allows you to move balances from other credit cards onto a different card. Typically, you’ll pay a fee to do this, and the transferred balance would be subject to the new credit card’s interest rate.
Cash advance
With a cash advance, you can tap into a credit card’s available credit limit to access funds, which you could then use to pay for another credit card bill. However, this is typically quite expensive as cash advances typically come with a higher annual percentage rate (APR) than the card’s typical purchase APR. Interest can also begin accruing immediately.
How balance transfers work
When you initiate a balance transfer, your credit card issuer typically directly pays the balance on another credit card of your choosing. It then adds your total transfer amount to your new account.
Balance transfer fees can vary but typically range from 3% to 5% of the transferred amount. Many credit card issuers offer a low intro APR on balance transfers, which means you might pay less interest for a limited time, allowing you to save money. After the intro period ends, however, the remaining balance would be subject to the credit card’s regular APR.
The total amount you may transfer onto your balance transfer credit card often depends on your credit limit and a credit score.
The cons of paying off a credit card with a cash advance
Cash advances can be quite expensive as they are subject to high cash advance APRs, which may apply right away. Cash advances are also typically subject to a cash advance fee, often ranging from 3% to 5% of the advanced amount. Another consideration is that cash advance limits are typically lower than your credit card limit, which may be an issue for some.
Using one card to pay another: additional considerations
If you plan on using a balance transfer or cash advance to pay another credit card, it’s important to carefully consider the following factors:
Fees
- Cash advances: You’ll typically pay a cash advance fee to use this feature, but there may be additional fees (such as an ATM fee or bank fee) depending on how you access cash advances.
- Balance transfers: You'll typically pay a balance transfer fee on your total transferred amount.
Interest rates
- Cash advances: Your cash advance APR is typically higher than your purchase APR.
- Balance transfers: You may be able to qualify for a low intro APR for a set period, after which the APR would go back to the typical card APR.
Repayment terms
- Cash advances: You must repay cash advances (including the fee and interest charges) just as you would a regular credit card purchase.
- Balance transfers: You'll still need to pay a minimum monthly payment on your balance transfer credit card, based on the amount you transfer (and any other balance on that card). To minimize interest charges, structure your payments to pay off the transferred amount before the introductory period concludes.
Credit requirements
- Cash advances: You don't have to apply for new credit, as it is an option that comes with many credit cards
- Balance transfers: If you don’t have a credit card that offers balance transfers, you’ll need to apply for a new credit card. Approval typically depends on credit score and other factors.
In general, it’s best to avoid using credit to cover unaffordable debt. You may consider alternatives, such as budgeting, income adjustments and talking to your credit card issuer, if you’re dealing with financial difficulties.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
