Can You Pay a Credit Card Bill With Another Credit Card?

Not usually. Card issuers expect payment from a bank account, not another credit card. There are workarounds, but each one costs money. And one of them may be too slow to cover a bill that’s due this week.

If your payment is coming up and your checking account is short, the cheapest first step is calling your card issuer before the due date.

Ways to use one credit card to pay off another

Balance transfers

A balance transfer moves debt from one card to another card that accepts transfers. You don’t send a payment. The new card takes on the balance instead.

Two limits worth keeping in mind:

• It usually must be a different issuer. You typically can’t transfer a balance between two cards from the same bank.
• It isn’t an instant transfer. Transfers can take days to weeks to post, and you still owe the old card until they do.

There’s usually a fee, often a percentage of the amount you move. At a 5% fee, transferring $5,000 costs you $250. A balance transfer is worth it only if the new card’s terms beat your current one’s, usually through a promotional rate for a limited time.

Cash advances

Some cards let you take a cash advance against your available balance at an ATM or by moving money to a linked checking account.

It’s fast, but it’s the most expensive way to move money:

• You’ll pay a cash advance fee, either a flat amount or a percentage of the advance, plus any ATM operator fee.
• The interest rate is often higher than your card’s purchase rate.
• Interest starts the day you take the money. There’s no grace period.
• Most cards set a cash advance limit that’s lower than your overall credit limit.

When using another credit card to pay a bill makes sense

It rarely makes sense to do this, other than as a one-time bridge. If a payment is due in days and you can’t cover it, a cash advance can keep the account current, but you’ll pay for that in fees and interest from the first day.

Call your issuer first. If it is willing to work out a plan, you may not need the advance.

It also helps to know the actual deadline. You might pay a fee on a payment that’s a few days late, but it isn’t reported to the credit bureaus until it’s at least 30 days late. At more than 60 days late, the issuer can raise the interest rate on your balance.

If you’re paying down debt over months rather than covering one bill, a balance transfer card with a low promotional rate can save you interest. Before you move a balance, understand the fees, what rate applies if you miss a payment, and whether you can comfortably afford the new amount.

If you need only a few hundred dollars, a cash advance app can cost less.

Read more >> What Happens if You Miss a Credit Card Payment?

Risks of paying a credit card with another credit card

Moving debt doesn’t reduce it. The total you owe stays the same, plus the fee.

The card you paid off stays open, and new charges on it start a second balance. Some people close it or set it aside until the transferred balance is paid down.

A promotional rate also ends. Know what rate the remaining balance will carry afterward, and how much you’d need to pay each month to clear it before then.

Read more >> What Happens if You Don't Pay Off Your Credit Card?

Alternatives to paying a credit card with another credit card

Payment plans with your issuer

Call the number on the back of your card before you miss a payment. Explain why you can’t pay how much you can afford, and when you expect to be back to making your usual payments.

Many issuers will adjust your payment, waive your first late fee, or even modify your payments if you’re facing a financial emergency.

Debt consolidation loans

A debt consolidation loan pays off several balances and leaves you with one payment. If the loan’s rate and fees are lower than your cards’, it can save money. Compare the total cost over the full term, not just the monthly payment. Like a balance transfer, it moves the debt rather than reducing it, and the paid-off cards stay open.

The CFPB warns about three signs in particular: a company that charges a fee before settling anything, promises it can make your debt go away, or tells you to stop paying your cards.

‍Moving a balance because you can’t pay it? It’s worth a conversation first. A balance transfer or a cash advance shifts the debt without reducing it. And if the promotional period ends before you’ve cleared the balance, you’ll be paying the new card’s regular rate on what’s left.

A nonprofit credit counselor can help weigh your options and tell you whether there’s a better fit. Call the National Foundation for Credit Counseling at 800-388-2227. They’ll connect you to free or low-cost counseling.

Cash advance apps

A cash advance app fronts you a small amount and takes it back from your next paycheck. For a gap of a few hundred dollars, that usually costs less than a credit card cash advance.

Grant Cash Advance offers $25 to $500 to eligible customers with no interest, no credit check, and no late fees. Standard delivery is free and takes one to three business days, with same-day delivery from $2 to $21. Repayment comes out of your next paycheck automatically, so plan for that check to be smaller.

Read more >> The Importance of On-Time Payments in Building Credit

Bottom line

You usually can’t pay one credit card with another. A balance transfer or a cash advance can move the debt, but neither one reduces it, and only the cash advance is fast enough for a bill that’s due now. Every other lower-cost option depends on your credit, including whether you’re approved for a balance transfer card or what rate a consolidation loan carries.

Every lower-cost option on this page depends on your credit: whether you’re approved for a balance transfer card, how long its intro rate lasts, and what rate a consolidation loan carries.

A Kikoff Credit Account adds on-time payments to your record at all three bureaus, no credit check required. Plans start at $5 a month.