Making timely payment of your credit card bill is really essential in order to avoid racking up unmanageable debt. But, what to do when you find it almost impossible to repay your credit card bills due to some reason? There can be times when you find yourself stuck in such a situation. For example, what if you didn’t get your salary on time? What if all your savings were spent due to some emergency? Is it possible to pay your credit card bill using another credit card in such situations? And if yes, then how can you do so? We are here with this article to help you understand the answers to all these questions. Keep reading to know all about the same.
Can You Pay Your Credit Card Bill Using Another Credit Card?
Most credit card issuers don’t allow this directly to make your credit card bill payment using another credit card as it is not the right way to clear your dues. Even if any credit card company allows it, then the fees for the process are so high that you will find it better not to go with the option. However, there are some indirect methods to pay your credit card bill with another card. These methods are as follows:
Balance Transfer is the process in which you transfer your credit card balance from one credit card to another (generally from a card with high interest to a card with a low-interest rate). Cardholders generally opt for this option when they find themselves unable to repay their credit card bills on time so that they can avoid paying extra charges like late payment fees, high interest rates, etc. However, there are some points that need to be kept in mind before applying for a balance transfer:
- Card issuers charge you a balance transfer fee when you opt for this option. You need to make sure that this fee is not higher than the total interest you would be paying on your current credit card.
- The third thing you need to keep in mind is that you can only transfer the balance up to the limit of the credit card you are transferring the balance to. So, make sure that the limit of your balance transfer credit card is not less than your total outstanding balance.
Paying Via Wallets
One more indirect method to pay your credit card bill using another credit card is to make the payment via wallets like Paytm wallet, PayZapp wallet, Mobikwik wallet, etc. Though PayZapp is associated with HDFC Bank, you can use it to pay your credit card bills, even for the cards that are issued by a bank other than HDFC. You can first load any of these wallets using a credit card from which you want to pay the bill of another card and then transfer that amount from the wallet to the credit card that needs to be paid. However, you will be charged a fee for reloading your wallets using your credit card, so you must check for all the charges that can be applied when you opt for this option.
Things to Be Considered
- Check the rate of interest applicable on both the cards.
- Balance transfer would be beneficial only if the balance is transferred from a high interest bearing card to a low interest bearing card.
- A high rate of interest will be charged on cash withdrawals through credit cards.
- When you add money to your e-wallet using your credit card and transfer the added amount to the linked bank account, then also, some sort of fee might be charged on such transfers.
- Many people believe in using the cash advance facility to pay their credit card bills, which is not advisable at all. If you withdraw cash from a credit card to pay off another credit card, you might fall into a debt trap as credit cards charge a really high cash advance fee. And also, there is no interest-free period for cash withdrawals.
Card issuers generally don’t allow you to pay your credit card bill using another credit card as it may not be a fair financial decision. But, balance transfer and cash advance are the indirect methods to do so. However, before going with any of these options, you must calculate carefully and decide which option is going to be more beneficial for you. Moreover, taking a personal loan with a low interest rate to pay your credit card bill can be another decent method if you don’t want to go with a balance transfer or cash advance as both of these can be really costly sometimes.
If required, which of these options will you choose? Do let us know in the comment section below. Moreover, if you have any doubts regarding the topic, you can write them here; we will be happy to help you!