Is it Possible to Pay Off One Credit Card With Another Credit Card?

For the most part, it’s impossible to pay for one credit card with another. Although cash advance transactions can be used as a workaround,

Consumers should be aware that these transactions can harm their finances and increase their overall debt.

In most cases, this will make it more difficult for you to pay off your debts. Consumers can take advantage of a service called a balance transfer.

In this case, you’ll transfer your debt from one credit card to another, which is significantly less expensive.

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When It Comes To Transferring A Balance

To save money on interest, you should transfer your debt from one credit card to another with an introductory APR of 0% or a low-interest balance transfer promotion and then pay it off at a lower rate.

Credit card balance transfer fees range from 3% to 5% of the amount transferred, with some exceptions.

Transferring money from one account to another takes time; it may take several weeks to complete the process. In addition, they don’t typically receive compensation for their efforts.

For Direct Monthly Payments

Using multiple credit cards to pay a monthly credit card bill is usually out of the question. This is not a foolproof strategy for accumulating rewards or extending its time to pay off debt.

Most credit card issuers demand that you use a bank account to pay your credit card bills online or by phone.

Account and routing numbers are required, and credit card numbers are not acceptable in their place.

Due to issuers’ desire to minimize risk, these restrictions are in place. Defaulting on payment may be more likely if a customer pays one credit card with the payment of another.

Why Is It A Bad Idea To Pay A Credit Card With A Credit Card?

Credit card fees and interest charges will skyrocket if you pay for a credit card using another credit card.

To begin, you will be charged a cash advance fee if you withdraw money from an ATM or cash a convenience check.

In most cases, this fee will be around 5% of the total amount that you withdraw.

Take a loan of $2,000 to pay off a $2,000 credit card bill, and you’ll end up with an additional $100 in debt.

In other words, you’ve gone from owing $2,000 to $2,000 and a half.

Cash advances, on the other hand, pose a significant financial risk because of their high-interest rates.

After taking out a new one, you are almost sure to pay a higher interest rate than the APR you previously spent on your outstanding balance.

There is an average credit card interest rate of around 14%… The average APR for a cash advance is 25 percent, more than a tenth of a percentage point higher.

It’s important to note that when you take out an overdraft on your bank account, you’ll have to fork over more money up-front, and you’ll likely end up paying more interest in the long run.

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Related Questions And Answer

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

If you’re attempting to pay off one credit card balance with another, this is typically not possible. Banks do not allow you to use another credit card to pay off your credit card balance. Generally, the only acceptable modes of payment are checks, electronic bank transfers, or money orders.

Is it illegal to pay a credit card with a credit card?

To keep it short, the answer is no. Most credit card issuers aren’t willing to accept credit card payments as a standard method of payment. If you prefer to pay with cash or a check, you can do so at a local branch, ATM, over the phone, or by mail. Alternatively, you can use your checking or savings account.

Can you withdraw cash from a credit card?

The majority of credit card issuers permit cardholders to obtain a cash advance from an ATM. To get cash, cardholders can use a credit card at almost any ATM and withdraw money just like they would with a debit card, but the money is taken out of a credit card instead of a bank account.