Understanding Credit Card Payments: Can You Pay One Credit Card Bill with Another?

At O1ne Mortgage, we prioritize consumer credit and finance education to help you make the best financial decisions. If you have any mortgage service needs, feel free to call us at 213-732-3074. In this blog, we will explore the intricacies of paying off credit card bills, including whether you can use one credit card to pay another, and provide some practical solutions if you’re struggling to keep up with your payments.

Can You Pay Your Credit Card Bill with Another Credit Card?

Generally speaking, you can’t pay one credit card bill directly with another credit card. Credit card companies typically do not allow this form of payment. Your options for making monthly payments are usually limited to automated clearing house (ACH) transfers, cash, checks, or online bill pay portals. When using your credit card’s online payment app, you’ll see the option to link your bank account for payments, but not another credit card.

How to Pay Off One Credit Card with Another

While it may not be possible to cover monthly payments directly with another card, there are a couple of ways you can pay off your balance using another card. Here are the methods and their pros and cons:

Balance Transfer

A balance transfer involves using a credit card from another issuer to pay off an existing credit card balance, effectively transferring the balance from the original card to the new one. Many credit cards offer a lower introductory annual percentage rate (APR) on balance transfers—typically 0%—for a set period, sometimes up to 21 months depending on the card. This feature makes it easy to pay down a balance and save on interest charges in the process.

However, balance transfers typically come with a fee of 3% to 5% of the transferred balance. For example, if you transfer $5,000, you can expect to have between $150 and $250 added to your balance. That fee can still be worth it if the interest savings exceed the upfront charge, but it’s important to consider as you run the numbers.

Cash Advance

While you can technically use a cash advance to pay off another credit card, it’s not advisable. Cash advances typically come with an upfront fee, and it’s generally higher than what you’d be charged for doing a balance transfer of the same amount. Additionally, the interest you get charged—which often comes at a higher rate than the card’s regular purchase and balance transfer APR—starts accruing immediately. In other words, a cash advance could wind up costing you more money than if you were to keep the balance on the original card.

What to Do if You Can’t Pay Your Credit Card Bill

If you’re having a hard time keeping up with your minimum monthly payment, requesting a balance transfer likely won’t solve your problem because you’ll eventually need to make a payment on the new card. Here are some other potential solutions:

Contact Your Card Issuer

Many credit card companies offer some form of relief to borrowers who can’t afford their payments. This assistance may come in the form of forbearance, a reduced interest rate, or a modified payment plan. Just keep in mind that this relief may be temporary, so it’s typically not a good long-term solution.

Work with a Credit Counselor

If you’ve tried working with your credit card issuer and it hasn’t helped, consider reaching out to a nonprofit credit counseling agency. A credit counselor can help you evaluate your situation and determine some next steps. In some cases, that may involve a debt management plan. For a modest upfront and ongoing fee, the agency can negotiate with your creditors to potentially reduce your monthly payment or interest rate and get you on a payment plan that helps you avoid defaulting.

Offer to Settle Your Debt

If your situation is dire enough that a debt management plan might not help, you may consider offering to settle for less than what you owe. Because this option can damage your credit score significantly, it’s best considered only if you’re already far behind on your payments.

File Bankruptcy

If you’ve pursued all other avenues and can’t find a solution, filing bankruptcy may be the only option that’s left. Due to the devastating effect it’ll have on your credit and finances, however, it’s important to consider bankruptcy only as a last resort. In the right circumstances, this option could help you get back on your feet.

Frequently Asked Questions

How Long Does a Balance Transfer Take?

Balance transfers can take anywhere from a few days to several weeks to complete. On average, you can expect to wait between five and seven days. However, the actual time depends on your credit card issuer, with some taking as long as 21 days.

Do Balance Transfers Hurt Your Credit?

Balance transfers can impact your credit in multiple ways. If you apply for a new balance transfer card, there could be a temporary negative impact on your score because you’ll lower the average age of your accounts and add a new inquiry to your credit report. On the other hand, a balance transfer card also raises your available credit, which can have a positive impact. If it helps make paying off debt more manageable, then a balance transfer can be a strategy for achieving on-time payments, lowering your total amount owed over time, and improving your credit long term.

Check Your Credit Before Applying for a New Credit Card

If you’re thinking about applying for a balance transfer credit card to get an introductory 0% APR, it’s important to note that these cards typically require good or excellent credit to get approved, which generally means a credit score of 670 or above. Check your credit score to get an idea of where you stand, and if your credit history needs some work, take the time to improve your credit before you apply.

At O1ne Mortgage, we are here to help you navigate your financial journey. If you have any mortgage service needs, don’t hesitate to call us at 213-732-3074. Our team of experts is ready to assist you in achieving your financial goals.