Can you use a credit card to make a payment on a different credit card?

Can You Use One Credit Card to Pay Another? The Truth About Credit Card Payments

Juggling multiple credit cards can feel like a financial tightrope walk. So, when facing a looming payment deadline on one card, it’s tempting to consider simply using another credit card to pay it off. While the idea seems simple, the reality is more nuanced. You can’t directly use one credit card to pay another like you would with cash or a debit card. There’s no “pay another card” option readily available on most credit card interfaces.

However, there are legitimate ways to achieve a similar outcome, though they aren’t a direct transaction between the two cards:

1. Balance Transfer: This is the most common and often the most effective method. Many credit card companies offer balance transfer options, allowing you to move the outstanding balance from one card to another. This often involves applying for a new card (or using an existing one with a balance transfer feature) that offers a promotional 0% APR period. This can give you valuable time to pay down the balance without accruing further interest charges. However, it’s crucial to understand the associated fees. Balance transfers typically come with a percentage-based fee (e.g., 3-5% of the transferred amount) and often require a good credit score to qualify.

2. Paying via Online Bill Pay or a Third-Party Service: Some banks and credit unions offer online bill pay services that allow you to schedule payments to various creditors, including credit card companies. You can use your checking account, or even another credit card’s linked checking account, to make the payment. Keep in mind that this still involves moving funds from your checking account, not directly from one card to another. Using this method also means you won’t benefit from a 0% APR period.

3. Using a Personal Check or Money Order: While less convenient, you can always write a check or money order payable to your credit card company and mail it in. This requires accessing funds in your bank account, and doesn’t eliminate the need to manage your finances prudently.

What to Avoid: Attempting to circumvent the system by making a cash advance on one card to pay another is generally not recommended. Cash advances usually come with exorbitant interest rates and fees, negating any potential savings from transferring balances.

The Bottom Line: While you can’t directly use one credit card to pay another, there are various methods to effectively transfer balances or make payments. Choosing the right approach depends on your financial situation and goals. Always carefully compare fees and interest rates before making any decisions. If you’re struggling to manage credit card debt, consider seeking professional financial advice to create a manageable repayment plan.