There’s one question that every credit card user asks at one point in time: Can I use one credit card to pay off another? The short answer is “Yes.” But before you rush to make your minimum payments, take a minute to read the details below for more information.
You can use one credit card to pay off another
Although you can do it, you won’t be able to do it directly. Most credit card issuers won’t allow you to just punch in another credit card number online to make your payment. However, you can always take a cash advance from your credit card. All you need to do is find an ATM. Afterwards, you can use the money to pay off your other card.
But be aware that taking out a cash advance is not the same as shopping. Cash advances carry a much higher interest rate. Using this method to pay off your credit card can hurt you if you’re not careful and if you don’t pay back everything that you owe. You might want to consider cash advances as a last resort.
Why not go for a balance transfer?
If you’re unable to make the minimum payments due to the mountains of debt that you accumulated, you might want to think about transferring your balance to a crads with a 0% APR promotion. Those with excellent credit can choose from several cards currently on the market that offer 12 months or more interest-free. This should be enough to get your affairs in order.
Unfortunately, balance transfers also come with some downsides:
- Balance transfer fees – most insurers charge fees of 3%, but, if you shop around, you might find something better.
- If you don’t make your monthly payments on time, your credit card issuer will cancel the 0% deal and start charging you interest right away.
- 0% promotions don’t last forever. Make sure that you know exactly when the interest-free period expires!
Take a look at your finances
If you’re unable to make your monthly payments, then there’s definitely something wrong. Take a hard look at your finances and figure out what’s happening. Are you overspending? Are you carrying too much debt? Do you earn enough to cover your costs? The answers to these questions should help you better understand the situation.
Once you identify the problem, try to take care of it as soon as possible.
Just because you can use a credit card to pay off another doesn’t mean that you should rely on this option. If you want to have a healthy financial life, you need to be responsible and smart when using your credit card.