Can I use one credit card to make a payment on another?

can i use one credit card to make a payment on another: 3-5% fee

Managing debt through can i use one credit card to make a payment on another offers potential interest savings when executed correctly. Selecting the right financial strategy helps avoid high interest charges and prevents worsening debt cycles. Review your options carefully to ensure long-term stability and credit score protection.

Can you pay a credit card with another credit card directly?

No, you cannot use one credit card to make a direct monthly payment on another credit card. Credit card issuers generally require payments to come from a checking account, savings account, or by check to ensure they are receiving liquid funds. While you cannot simply log into a portal and pay your bill with another cards number, you can effectively move the debt using credit card to pay credit card debt using a balance transfer or a cash advance.

This restriction exists primarily to prevent credit cycling, where a user indefinitely moves debt between cards to avoid ever paying it off with real money. I remember trying this years ago when I was tight on cash - I thought I could just enter my other card details into the payment screen. It didnt work.

The system rejected the card number immediately, and I ended up spending three hours on the phone only to realize I was approaching the problem the wrong way. Most major issuers have strict blocks in place for this. But theres one counterintuitive strategy involving third-party services that most people overlook - Ill explain it in the section on hidden costs below.

The Balance Transfer: The most common way to pay off one card with another

A balance transfer is a formal process where one credit card company pays off the debt on another card and then moves that balance onto their own ledger. This is the legitimate way to pay credit card bill with another credit card. It is often used as a debt consolidation tool because many cards offer an introductory 0% APR on transferred balances for a set period, typically ranging from 12 to 21 months.

Using a balance transfer effectively can save a significant amount of money. For instance, moving 5,000 USD from a card with 24% interest to a 0% APR card can save roughly 100 USD in interest charges every single month. However, there is a catch: almost all banks charge a balance transfer fee, which usually ranges from 3% to 5% of the total amount moved.

^[2] For a 5,000 USD transfer, that means youll pay an upfront fee of 150 to 250 USD just to initiate the move. You also can you pay a credit card with a credit card directly cannot transfer balances between two cards from the same issuer; you cant move a Chase debt to another Chase card.

How a balance transfer impacts your credit

Opening a new card for a balance transfer involves a hard credit inquiry, which typically dips your credit score by about 5 points.^[3] But heres the kicker. If you move your debt to a new card with a higher limit, your overall credit utilization ratio might actually improve, leading to a score increase after a few months of on-time payments. I once saw my score jump 15 points after a transfer simply because my total available credit doubled. It felt like a win, but it only worked because I didnt rack up new debt on the original card.

Using a cash advance to pay a credit card bill

A cash advance allows you to withdraw cash from one credit card to pay the bill of another. This is a high-stakes move and generally considered a last resort. Unlike standard purchases, cash advances do not have a grace period. Interest begins accruing the very second the money is in your hand.

The costs of a cash advance are staggering compared to other methods. Most cards charge a cash advance fee of 5% or 10 USD (whichever is greater), and the APR for cash is often 5-10% higher than your standard purchase APR, frequently exceeding 29%. ^[4] If you take out 1,000 USD to pay a bill, youll likely lose 50 USD immediately in fees and start paying nearly 1 USD per day in interest. Its expensive. Very expensive. Most financial experts warn that using how to pay off one credit card with another debt via cash advances is a clear sign of a looming financial crisis.

Hidden costs and third-party workarounds

Remember the counterintuitive strategy I mentioned earlier? Some people use third-party bill-pay services like Plastiq to pay credit card bills using another credit card. These services charge a fee, often around 2.9%, to send an ACH transfer or check to your card issuer on your behalf. While this makes a direct payment possible, it is rarely worth it.

Why? Because credit card issuers have caught on. Many issuers now treat payments from these third-party services as cash advances rather than standard purchases. This means you could get hit with that 29% interest rate and an additional cash advance fee from your bank on top of the 2.9% fee you paid the service. Youre effectively paying a 33% premium just to move money. Its a trap. Ive seen users try to transfer credit card balance to another card to earn rewards points, but since most cards exclude cash advances from earning points, they ended up with zero rewards and a massive bill for fees.

Comparing methods to pay debt with another card

Balance Transfer ⭐

Consolidating debt and stopping interest growth

0% for 12-21 months (introductory)

3% to 5% one-time fee

Cash Advance

Extreme emergencies only

Usually 25% to 30% APR

5% fee + immediate high interest

Third-Party Bill Pay

When cash is unavailable and transfer isn't an option

Risk of being charged as a cash advance

2.9% service fee

Minh's Struggle with High Interest in TP.HCM

Minh, a 28-year-old IT professional in TP.HCM, found himself stuck with a 40 million VND credit card balance at 25% interest. He tried to pay the bill directly using a second card, but the transaction was blocked by his bank.

He then considered a cash advance from an ATM near his office in District 1. However, the 4% fee and immediate interest meant he would lose nearly 2 million VND instantly, which felt like throwing money away.

Minh realized that a balance transfer was the only logical path. He applied for a new card offering 0% interest for 12 months. The process took 10 days, much longer than he expected, causing him a lot of stress about his upcoming due date.

The transfer finally cleared, costing him a 3% fee (1.2 million VND). Over the next year, he saved over 10 million VND in interest charges, allowing him to finally clear his debt by late 2026.

This content provides general financial education and is not personalized investment or debt management advice. Credit card terms and interest rates change frequently, and market conditions vary. Consult a certified financial advisor or credit counselor before making significant financial decisions. Consider your credit score and long-term financial health before opening new accounts.