Can You Pay Off One Credit Card With Another Credit Card?

When cash flow is tight, you might be tempted to use one credit card to pay off another. But most credit card issuers won’t let you pay your bill with another credit card — at least, not as a direct form of payment.

However, two workaround methods let you indirectly leverage the available credit on one card to pay the balance of another: balance transfers and cash advances. Each of these comes with some pros and cons.

Key Takeaways

• It’s usually not possible to use one credit card to pay another credit card bill.
• If using another credit card is your only option, you might be able to pay through a balance transfer or cash advance.
• These methods have their pros and cons, and may increase your debt or carry additional financial risk.
• A balance transfer often includes a low-interest promotional period, but transfer fees could negate the interest savings. 
• A cash advance typically comes with additional fees and higher interest rates than purchases, and may not provide a grace period before interest accrues.

Can You Pay a Credit Card Bill With Another Credit Card?

No, you usually can’t pay one credit card bill with another credit card. That’s like robbing Peter to pay Paul, and creditors don’t want to encourage something that can easily backfire and leave consumers with additional debt.

But even though you can’t typically use a credit card as a payment method for another card, one of the two alternatives may work in a pinch. They require some legwork, and you need to weigh the benefits against the drawbacks, but they are often doable.

How Can You Use One Credit Card to Pay Another?

Your two alternate options are:

1. Using a balance transfer, which involves moving your balance (or part of your balance) from the card that needs paying to another card.

2. Taking out a cash advance, which involves withdrawing money from your credit card and then using that cash to pay off another credit card.

Knowing what these options entail, as well as the pros and cons of each, can help you decide if either approach is the right financial move for you.

Using a Balance Transfer to Pay Another Credit Card

A balance transfer is the closest thing to paying one credit card with another. You can make a balance transfer in a few ways.

• Credit card companies sometimes offer cardholders the opportunity to transfer other credit card balances to their account with them.
• The process often includes low- or no-interest introductory rates.
• If you apply for a new card — especially a dedicated balance-transfer card — you may be asked whether you want to transfer a different balance to it.

Depending on how much you transfer, this option allows you to clear off the balance of one or more credit cards by moving them to another. Ideally, you’ll take the balance from a higher-interest card and transfer it to an account with a lower interest rate. You can also use a balance transfer as a debt-consolidation method, which gives you the added benefit of only needing to pay one bill instead of several going forward.

How to Pay a Credit Card With a Cash Advance

A cash advance is like a short-term loan from a credit card issuer. You have a few choices here as well.

• You can usually use your credit card at an ATM or bank to take out cash against your line of credit.
• You can then use this cash to pay another credit card bill through an ATM.
• If your card issuer has physical banks, you can also pay your bill with cash at any branch.
• Alternatively, you could purchase a money order or cashier’s check with the cash, and use that to pay your credit card through the mail.
• You may periodically receive a convenience check from your creditor, which works as a cash advance and lets you pay another credit card bill by mail.

While cash advances provide you with several options for paying your credit card bill — at a machine, with a bank teller, or through the mail — you should never mail cash. If you want to turn your cash advance into a mail-in payment, only use a money order, cashier’s check, or convenience check.

The Pros of Using One Credit Card to Pay Another

Using a balance transfer or cash advance to pay a credit card bill comes with some benefits.

Pros of balance transfers

• Balance transfers allow you to leverage your available credit and move your money where it’s needed.
• They can also simplify your finances by consolidating multiple accounts into one.
• A low- or no-interest introductory period lets you save money by paying less interest on your debt.

Pros of cash advances

• Cash advances provide immediate access to cash that you may not have had.
• You can pay your bill quickly to avoid or reduce interest charges or late fees.
• Having several cash payment options lets you choose how to handle your bill.

The Cons of Using One Credit Card to Pay Another

There are also potential disadvantages to using a balance transfer or cash advance for paying a credit card bill.

Cons of balance transfers

• Balance transfers do not reduce debt, but simply move it from one account to another.
• They usually come with balance transfer fees, which can be a flat amount or a percentage of the transferred balance.
• If you don’t pay off the full balance during any introductory rate period, the remaining amount will accrue higher interest charges.
• Lower promotional interest rates may only apply to the balance transferred and not new purchases.
• Opening a new card to complete the transfer usually involves a hard inquiry, which can cause your credit score to go down.
• Your credit utilization ratio may increase after the transfer, which can also impact your credit score.

Cons of cash advances

• Cash advances must be paid back, and often lead to additional credit card debt in the meantime.
• This may also cause your credit utilization to go up.
• Cash advances usually come with higher interest rates than any other transaction type.
• You typically have to pay cash advance fees and ATM fees.
• Cash advances often have no grace period, meaning interest starts accruing right away.

Ultimately, both of these methods may leave you with more debt than you started with.

Bottom Line

While balance transfers and cash advances can both be short-term solutions to paying off credit card debt, they are not a replacement for healthy financial planning and management. Both come with long-term risks, could be expensive, and may potentially lead to additional debt or a lower credit score.

If you do choose to explore one of these options to pay your credit card bill, it’s important to do your homework first and weigh the pros and cons based on your financial situation.

Once you’ve dealt with the financial emergency, the best way to systematically pay down credit card debt and build your credit score is by making timely payments every month — at least the minimum amount due, and preferably more. A credit card can be a great tool, as long as you don’t charge too much or treat it like free money.

If you need a new credit card so you can better spread out your purchases and keep your credit utilization low, see if you pre-qualify for one from Credit One Bank. Checking your offers doesn’t affect your credit score or come with any commitment.