The short answer is no, you can’t directly pay your credit cards with another card, and for good reason. Paying off debt with more debt is risky to your finances and to your credit. However, if your situation is dire, you do have options. Let’s take a look at the different methods you can use to make those payments, including using credit card balance transfers and cash advances.
Making Monthly Payments With a Credit Card
Unfortunately, it’s not possible to make your monthly payments with your credit card. Most credit card issuers limit the ability to pay your card balances to funds drawn from a bank account. This is to limit their risk (while it also protects you); card issuers want to know you’ll be able to pay off your debts, not simply transfer them elsewhere.
Balance Transfer
Although banks want to know you can pay off your debts, it is still possible to transfer debt from one card account to another. You can do this with a balance transfer. Balance transfers can be a useful option, especially if your bank offers you a limited-term 0% APR on the transferred balance. Some credit cards offer this as an option when you’ve first opened your card account. Balance transfers can also be available on your existing cards, with variable rates as decided by your bank.
Cash Advance
Many credit cards offer cardholders a credit card cash advance, although generally, it’s not a good idea to use one. When you’re coming up short, however, it can help you make your payments. A cash advance works as a short-term loan on your credit card. Instead of using your credit for purchases, you use it to borrow cash. The credit limit for advances is not the same as your credit limit for purchases; the cash advance limit is usually lower. Cash advances usually have a higher interest rate than your standard credit card interest rate, but check with your card issuer to be sure. Another negative is that interest on the amount advanced will begin accruing immediately, unlike purchases, which often have a grace period when interest is not charged.
Other Ways To Pay Off Credit Card Debt
If you’re struggling with credit card debt, you have options other than paying off your credit card with another credit card.
Debt consolidation: Plenty of banks allow you to secure personal loans. These can be used for a variety of different reasons, including home renovations, maintenance, and credit card debt consolidation. Doing so allows you to lump all your card payments into one single payment, and your loan may charge a lower interest rate than your credit cards. Snowball method: A popular method to pay down debt, the snowball method has you focusing on paying off your smallest debts first. Once all your minimum payments are made, you then put your excess funds toward paying off those small balances. This allows you to create a “snowball” effect, freeing up those funds to go toward your next smallest balance. Avalanche method: Another popular debt-payment strategy, the avalanche method focuses on you paying off your debt with the highest interest rate first. After making all your minimum payments, you then put any remaining funds toward your most expensive cards. This allows you to save more money, which you can use toward paying off further debt.
