Normally, you can't pay a credit card bill with another credit card, but balance transfers and cash advances offer a workaround.
By PradeepJuly 26, 2024
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Balance transfers let you move debt to one card, possibly with a no-interest period like 18 months, helping save money and clear debt faster.
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After a balance transfer, the original card's debt is considered paid, consolidating your debts into one.
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Cash advances allow you to withdraw part of your credit limit in cash to pay off another card, but come with high fees and interest rates.
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These methods can affect your credit score by using up your credit limit or opening new accounts, potentially lowering your score.
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Balance transfers charging 3-5% of the transferred amount and cash advances costing 5% or $10, whichever is greater.
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High interest rates are a concern, especially since cash advances have rates higher than normal purchases, and promotional low rates on balance transfers can end.
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Interest on cash advances begins immediately, unlike normal purchases where paying on time avoids interest charges.
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Relying on credit to pay credit can lead to more debt due to accumulating fees and interest, worsening financial situations.
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Alternatives include negotiating with credit card companies, considering debt consolidation loans, or seeking advice from a credit counselor to manage or reduce debt more effectively.