Can I Pay Off A Credit Card With Another Credit Card
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At some point, there’s going to come a time when you run short on cash, it happens to us all.If you’re finding it difficult to come up with your minimal payment for a credit card, is it possible to use another credit card to pay it off?
Well, you could, you can use a credit card to pay off another credit card.However, there could be better ways to pay off that card.Let’s explore what options you do have.
Read Related Article: How To Withdraw Money From Checking Account Without Debit Card
Should I Use A Credit Card To Pay Off Another Credit Card?
It’s possible to use a credit card to pay off another, although you likely won’t be able to do it directly.When you go to make your payment online, you’ll likely see that the credit card issuer doesn’t allow you to enter a credit card to make the payment.
Despite that, there is a way around it.You can go to the ATM and get a cash advanced on your credit card to pay the other card.
Once you have the money in hand, you can go to your bank and deposit it in your checking account.With the money in your account, you can then pay the credit card as you usually do.
Now, if your credit card issuer sends convenience checks, you’ll be able to cash those and deposit them into your checking account.
Be mindful, both of these scenarios can cost you a fair amount of money.ATM fees can be high depending on where you go and convenience checks cost additional money.
Cash advance fees typically carry a 3-5 percent interest charge, but you do want to be mindful of these before you do anything.
What About A Balance Transfer?
If you’ve been thinking about using one credit card to pay off another, you’ve likely come across some information on a balance transfer.If you’re having trouble making minimal payments due to a high balance credit card, look for a 0 percent APR credit card to transfer your balance over.
If you have good credit, you’re going to have a lot of options for finding a great zero percent interest balance transfer credit card.While you’ll have to pay attention to the exact offer, balance transfer cards may give you 0 percent interest for 12 months, 15 months, 18 months or more.
If you’re carrying a $10K balance and you’re paying 21 percent APR on interest, that interest charge is going to be a lot of money.Sounds great, right?
Hold the phone, there’s usually a 3-5 percent balance transfer fee involved.
The bottom line, if you’re thinking about a balance transfer, make sure you read the fine print.Balance transfers can help a lot but make sure you calculate the expenses and savings.
You may find out it’s not worth the cost, just depends on your specific scenario.
How Are Your Finances?
If you’re struggling to make your minimum payments, you likely know why.If you are in this scenario, you need to take a look at your finances.
If you’re considering a balance transfer, just be mindful of your specific situation before you proceed.
Why are you having trouble making minimum payments?
Are you overspending?
Are you making less money than before?
Did you have an unexpected expense?
Do you have too much debt?
Sure, you can use a credit card to pay off another, but that doesn’t mean it’s a good idea to do so.We’d recommend taking a step back and taking a long hard look at your current finances.
Is There Any Other Options?
Cash advances are expensive, loans are expensive too, especially for someone that is already struggling to make the minimum payments.If you’re considering trying to get a loan, we wouldn’t recommend it.
Sure, you can use that money to catch up on bills but then you’ll have to turn around and start paying on your loan.If you can’t make minimum payments on your credit cards now, you likely can’t afford loan minimum payments too.
Now, if someone is willing to loan you some money interest free, that’s another story.However, you still have to pay that money back. If you won’t have additional money coming in soon, you may end up in a bad scenario with this option as well. We recommend finding another stream of income.Sure, it’s easier said than done but there’s a lot of ways to make additional money.
After all, if you don’t make your credit card payments, it’s going to ruin your credit and you don’t want that.With the internet, there’s a lot of different ways you can make more money.
You may also want to consider having a yard sale or selling some of your personal belongings.It’s a temporary fix but if you being watching what you spend, it can get you out of a tough situation.
If you’re not tracking how much you spend, you need to start doing so.You may be surprised just how much you’re spending. At the very least, you’ll be able to see where your money is going and make the appropriate adjustments to control your spending better.
For example, if you’re spending $150 a month on coffee, you may want to cut that in half.If you’re spending $300 a month on groceries, try cutting that down to $250 a month. You may be surprised just where you’re spending money, you’ll never know until you start tracking what your spending.
No matter which route you decide to go, be sure to weigh out all your options.If you find a good credit card that doesn’t have interest, that can help you save on cost. You get rid of a big payment and you can use the payment elsewhere.Even so, you’ll have to begin making payments on your new credit card soon. Be sure to take a close look at your finances, spend your money wisely.Make sure you weigh out all your options and make the best decision for you.
Read Other Related Article: Can You Withdraw Money From ATM Without A Debit Card?
Credit Shout is a community of personal finance experts dedicated to helping you save money and make smart financial decisions. Learn how to master your credit card rewards, improve your credit score and start eliminating your debt.