Can you use one Credit Card to Pay off another?

Can you use one Credit Card to Pay off another? Yes you can and I will discuss how you can do this in this post. I was asked this question recently so decided to write a short post about it.

I have done this as such using the Balance Transfer option just so you know. In this case it was to my Virgin Credit Card which I eventually ended up defaulting on but that’s a story for another day.

Balance Transfer to another Credit Card

If the credit card you want to use to pay off your other credit card offers a balance transfer option, then this could be one way to pay off the other credit card, Ideally you would want a card that offers a 0% transfer deal.

Also be mindful that the card you are transferring the balance to is definitely cheaper in terms of interest than the current one. There’s no point paying one credit card off with the other if the other is more expensive.

Also just to add it is highly likely there will be a balance transfer fee as well so factor that into your decision making process. The 0% interest period will offset that but just make sure everything adds up.

Cash Withdrawal on a Credit Card

I would not recommend this but it is an option. You could withdraw the cash then put that into your bank to pay off your other credit card. Some credit card providers also allow you to withdraw directly to your bank account as well so that’s worth checking. This is a terrible idea though as: –

• You will pay a Cash Advance Fee.
• Cash withdrawals from credit cards are reported to your credit report and could be seen as bad by other lenders.
• Cash Withdrawal Interest is often more expensive than purchase interest.

Please don’t do this. I just list it as a potential option.

Can you pay the monthly payment using a credit card?

No. Not unless you do the cash withdrawal method that I don’t recommend. You would effectively be robbing Peter to pay Paul. If you are in this situation then I would recommend getting help with your credit card debts as soon as possible.

Another possibility would be a balance transfer but that would be a lot of work just to make the payment.

Any other ways to pay a credit card with another credit card?

Not that I can think of. I would recommend a balance transfer as the option to achieve this rather than a cash withdrawal. I would also add that if you do this you should consider whether you still need the credit card you just paid off. Reason I say this is you could end up spending on the credit card you just paid off, and now you have two credit card debts!

If you have a good credit score and are looking to reduce your outgoings, you may be able to get a personal loan to pay off that credit card for a lower monthly payment than what you currently pay. I would close the credit card after it is paid off though to avoid the temptation of spending on it and ending further in debt.

What are the risks of paying off one credit card with another?

Well, if you read my about page you probably have a good idea about my situation. The risks are that you transfer your balance, keep the card you paid off open and eventually end up spending on that credit card again. The end result is you now have two credit cards to make payments to. If you have other debts or were already starting to struggle, this can be a recipe for disaster so my advice is simple, think very carefully before you consider doing this as you could just make things worse.

This is a temporary situation

If you are just struggling this month then you should contact your credit card provider to see what they can do. They may be able to help by allowing a payment freeze for example. The downside to this is the arrangement is likely to be recorded on your credit report as a missed payment or arrangement to pay. This could harm your credit score so is worth thinking about if you go down this route.

I hope this has helped you.