You can’t pay your credit card balance directly with another credit card. However, you can clear your credit card bills using other options like balance transfer and cash advance. These options allow you to access funds that you can use to pay your credit card balance.
This article will help you to understand the most important aspects of a credit card, including how you can pay your credit card balance with another credit card.
What Is a Credit Card?
A credit card works as a payment card that enables you to pay for goods and services using the funds provided by your card issuer in the form of credit. Several factors determine the amount of funds you can spend using your credit card, including your credit score, your accrued debt, and many others.
You can have as many credit cards as you wish, provided that you are eligible for them. However, owning multiple credit cards can quickly lower your credit score if your credit utilization rate is off.
Remember that your credit card report directly affects your overall credit score. Furthermore, multiple credit cards will affect your overall credit repayment capacity when you’re applying for a loan. The only way you can improve your credit score is to find the best credit repair service for assistance.
Can you use your credit card to pay for another card’s balance? Unfortunately, banks and other credit card issuers don’t allow this kind of transaction. But, as noted above, there are other effective credit card options you can use to pay your other credit card balance: cash advance and balance transfer.
How Does Credit Card Cash Advance Work?
The cash advance option allows you to withdraw money from one of your credit cards, in the same way you withdraw money from an ATM, and deposit it in your other credit card account to clear the balance. Unfortunately, this option can be quite expensive considering that it’s accompanied by high-interest rates and transaction fees. Furthermore, the interest starts to accrue the moment you withdraw the money.
This payment option doesn’t have a grace period. But with a normal credit card transaction, interest starts to accumulate at the end of your billing cycle, making your credit card bills cheaper.
How Does a Credit Card Balance Transfer Work?
The credit card balance transfer option allows you to transfer debt from one credit card to another. This helps you to consolidate your credit card debt and reduce the amount of interest it accrues.
For example, if you have a high-interest credit card and a low-interest card, you can move the balance of your high-interest card to the low-interest card for consolidation. You can save a lot of money by transferring your high-interest balance to your other card with zero percent APR.
You can use this option to improve your credit score. Just apply for a new credit card with a low preliminary APR and begin the balance transfer process. Then, pay your balance to boost your credit score.
Many credit card issuers offer exclusive balance transfer deals as a way of encouraging more people to acquire their cards. Some allow their customers to transfer balances with 0% introductory APR for between six and fifteen months.
Taking advantage of such offers would be wise to pay your credit card balance with your other card. However, you need to carefully check the balance transfer charges imposed before you initiate the transfer. It’s also important to check the proposed interest rate at the end of the promotional period because it might end up hurting your credit score even further.
Lastly, ensure that when you use any of these options, you don’t continue to use the card you’ve paid off until the card with the higher balance is paid off. Otherwise, your credit card will continue to accumulate, hurting your credit score.
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