Yes, it’s possible to use a credit card to pay another credit card. You might get confused as card issuers normally say they don’t accept the credit card bill payment from another card. Anything comes with a reason, because should they were cool with it, they would be as a merchant in term of relationship with the paid card issuer, and it’d be charged 2 -4% of transaction amount.
When talking about this topic, you should consider using them in short term ONLY since it actually leads you to another possible cost. Apply these when you find hard to pay down or pay off your credit card bill in next month, not in months afterwards or earn cash back/ reward points.
#1 Pay all your expense by another card
You just opened a new credit card for a low rate promotion. It will be your star player to kick the cash flow ass that you could miss out. Let use the new card in all your monthly spending and your cash will be free to solve your old credit card debt. After that, you must plan the cash flow for the debt of new card to avoid the debt circle.
Related story: Getting credit cards in a smart way
#2 Opt in a low rate balance transfers
This is normally an offer when you get a new credit card. The card issuers offer you a 2-4% transfer fee. In fact, you can find a even interest-free promotion in this term, of course, it’s hard and goes along with some conditions regarding to your credit score. As an incentive, these cards will transfer your existing debt to new balance, so you can pay down your debt with free or a very low (2-4%) extra cost.
Keep in mind that this deal is in a certain period ( 12 – 18 months), you must to keep track of when your deal is up and shake your finance up in the promotion period.
You should call to your certain card issuers to ask for this offer or consider to apply one of following cards which have a good deal in balance transfer.
Chase Slate Card
Citi Diamond Preferred Card
Citi Simplicity Card
Citi Double Cash Card
#3 Use cash in advance
In another word, you withdraw money from your credit cards (at a bank counter or ATM) to pay bills. Before doing this, you must aware of a signification fee, therefore it’s a clever move to double check the interest rate of your existing cards.
This approach is less recommended one and used in only special circumstances in very short time, otherwise you would be shocked by your new debt.
Big Warning Finance
All above methods are aimed at your short term finance status, you never think it’s a long run solution because it only helps you prevent from an urgent credit card debts but gives a hand into a worse financial problem.
So to get a healthy cash flow, ask yourself some questions:
- Does my income cover all costs? Ideally you’d come up with a 2nd or 3rd income in the future. Get a new part-time job to pump your pocket up.
- Is my debt out of control? Credit card companies want you to drown into debt to make a profit, and you are easy to get in this net because we think it’ll be fine and I can make more money in next month to handle the debt while spending. Thus, thinking twice before buying a new car, a new smartphone, etc.
- Am I overspending? Tracking your monthly big expenses will let you answer it. As the 2nd question, thinking twice before drowning a deeper step of debt.
Paying a credit card by another credit card is not a recommended alternative.