Can I pay my credit card bill by another credit card?

Balance transfer vs cash advance: 3-5% fee vs 24-30% APR

Can you pay a credit card with another credit card? While direct payment is not allowed, some methods exist but come with significant costs. Using a balance transfer or cash advance leads to unexpected fees and high interest charges. Understanding these options helps you avoid costly mistakes and manage debt wisely. Learn the key differences and risks below.

Can you pay a credit card with another credit card?

No, you cannot directly pay a credit card bill with another credit card. However, you have two indirect methods: a balance transfer, which moves debt to a new card, or a cash advance, which withdraws cash. Both options cost money through fees and interest, so it is important to understand the costs before proceeding.

Why can't I just use one card to pay another directly?

Credit card issuers do not allow you to use one credit card to make a payment on another because that would just shift debt between them.

It would not reduce your overall debt and it would also rob the issuer of the interest they earn when you carry a balance. When you look at the payment page on your credit cards website, you will never see an option to enter another credit card number as the payment method. The payment system is designed to accept funds from bank accounts, debit cards, or cash, not from other credit cards. This prevents a practice called credit card kiting, where people move debt between cards to create an artificial credit line.

What are my actual options? Balance transfer vs. cash advance

When you want to pay one credit card using another, you are really looking at two specific transactions: a balance transfer or a cash advance. They sound similar, but they work very differently and have different costs. A balance transfer moves debt directly from one card to another, while a cash advance lets you borrow cash against your credit limit.

Balance transfers: The smart way to move debt

A balance transfer is a transaction where you move the outstanding balance from one credit card to another.

It is the only legitimate way to use one credit card to pay off another. Most people do this to take advantage of a 0% intro APR offer on a new card, which allows them to pay down the debt without accruing interest for a set period. Balance transfer fees are generally 3% or 5% of the amount you transfer.^[1] So, if you transfer $5,000 with a 5% fee, you pay $250 upfront. The fee is usually added to your balance, so you end up owing $5,250 on the new card.

Cash advances: The expensive and dangerous shortcut

A cash advance allows you to withdraw cash from an ATM using your credit card. You could then deposit that cash into your bank account and use it to pay your other credit card bill. However, cash advances are one of the most expensive ways to borrow money. The fee is typically $10 or 5% of the amount, whichever is greater. For a $5,000 cash advance, that fee is $250. Unlike balance transfers, cash advances have no grace period, so interest starts accruing immediately at a high rate. A standard cash advance APR is typically 24-30% or higher. ^[3]

Balance Transfer vs. Cash Advance: Which should you choose?

If you need to use one credit card to pay another, a balance transfer is almost always the better choice. Here is how they compare side-by-side:

Balance Transfer

• Paying off high-interest debt when you have a clear plan to repay the balance within the promotional window.

• No interest during the 0% intro period, as long as you make minimum payments. Interest starts only after the period ends.

• Typically 3% to 5% of the transferred amount. For a $5,000 transfer, the fee ranges from $150 to $250.

• Often 0% intro APR for 12 to 21 months. After the promo period, rates are typically 18-28% based on creditworthiness.

Cash Advance

• Emergency cash needs when you have no other option and can repay the full amount within days.

• Interest starts accruing immediately from the transaction date. There is no grace period.

• Either $10 or 5% of the advance, whichever is greater. For $5,000, the fee is $250.

• High variable APR, often 28% to 35%. There is no promotional low rate.

How Sarah saved $1,200 with a balance transfer

Sarah, a 34-year-old marketing manager in Chicago, had $8,000 in credit card debt at a 22.83% interest rate. She was paying about $150 in interest each month and barely making a dent in the principal.

She applied for a balance transfer card offering 0% APR for 18 months with a 3% transfer fee. The $240 fee was added to her balance, so she owed $8,240. She was nervous about taking on new debt and worried about missing a payment.

Sarah set up automatic payments of $458 per month to ensure the balance would be zero before the promo period ended. She also closed the old card to avoid the temptation of spending on it again.

After 18 months, Sarah had paid off the entire balance and saved over $1,200 in interest compared to keeping the debt on her old card. Her credit score actually improved because her utilization ratio dropped from 75% to 15%.

This content provides general financial education and is not personalized financial advice. Interest rates, fees, and credit card terms vary by issuer and individual creditworthiness. Always read the terms and conditions of any credit card offer. Consult a certified financial advisor or credit counselor before making significant debt management decisions.