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Can you pay a credit card with a credit card — and should you?

Yahoo Personal Finance· Getty Images
Kat Tretina
7 min read

If it seems like everything is more expensive these days, it's not your imagination. The prices of groceries, medications, and even postage stamps have all increased, making it harder to stay within your budget.

Skyrocketing prices can also make keeping up with your payments more difficult. According to the Federal Reserve Bank of New York, credit card balances have increased, and approximately 8% of credit card accounts have become delinquent.

When money is tight, you may be looking for creative ways to make your payments and avoid late fees, such as using credit to pay the amount due on another card. Can you pay a credit card with a credit card? Although there are ways to do it, it can be risky — and expensive.

Credit card companies typically only allow you to make payments with a linked bank account or debit card; you don't have the option of entering another credit card number. However, there are two workarounds you could use to pay your credit card bill with another card:

With a credit card balance transfer, you move the balance from one card to another. Balance transfers allow you to consolidate your debt into one account, and some card issuers have special annual percentage rate (APR) offers for balance transfers. For example, you could get 0% APR for 18 months on balance transfers, which can help you save money and get out of debt faster.

When you complete a balance transfer, the debt is moved, and the existing card's balance is paid in full.

Read more: Our list of the top credit cards with 0% APR intro periods for balance transfers

Cash advances allow you to borrow against the credit limit on your credit card; you can get a lump sum of cash deposited into your checking or savings account — or in physical bills — to use as you wish.

It's possible to take out a cash advance from one card and use it to pay the amount due on another credit card, but there will be costly fees and interest charges.

Although you can use a balance transfer or cash advance to pay the amount you owe on another credit card, there are significant drawbacks to consider:

Although a balance transfer or cash advance doesn't hurt your credit on its own, it can affect your credit in other ways:

  • It may affect your available credit: When you take out a cash advance, you borrow against your credit limit. The cash advance will increase your credit utilization, which accounts for about 30% of your FICO credit score.

  • You'll have new credit account: If you use a balance transfer to move your debt to another card, you must open a new account. Each credit inquiry and new credit account can cause your score to drop.

Using a credit card to pay another card can be appealing if you're trying to avoid late fees and penalties, but it may not be as advantageous as you think. That's because you'll have to pay fees to complete a balance transfer or take out a cash advance, adding to your debt.

Balance transfer fees vary by card, but they're usually 3% to 5% of the transfer amount. If you're transferring a balance of $1,000, you'll pay $30 to $50 in fees.

Cash advance fees can be even more expensive. The most common fee structure is 5% of the advance amount or $10, whichever is greater. If you took out a cash advance for $500, you'd pay $25 in fees.

Depending on which approach you use to pay your credit card bill with a credit card, you may have to pay a higher APR on the transaction.

Cash advances are subject to APRs that are often significantly higher than the purchase APR; along with their fees, cash advances can be an incredibly costly form of credit.

Balance transfers may have lower APRs during the promotional period. However, the APR will revert to the purchase APR once the introductory period ends, and that APR may be higher than the APR you had on the original card.

With most credit card transactions, you benefit from a grace period — the time between when the statement billing cycle ends and the payment is due. As long as you pay off the balance by the end of the grace period, no interest accrues.

However, cash advances don't have grace periods. Interest accrues immediately from the day of the advance.

If you're stressed about your payment due dates and worried about falling behind, using a credit card to pay the amount owed can be tempting. But by using debt to pay down existing credit card balances, you're taking on added fees and higher APRs. You'll add to your balance and worsen the problem, making it even more challenging to get a handle on your finances.

Can you pay a credit card with a credit card? Yes, if you use a balance transfer or cash advance. But they both may be expensive and won't solve the problem that led you into debt.

Instead, consider these alternatives:

As soon as you realize you can't afford the minimum amount due, contact your credit card issuer. Many issuers have financial hardship programs for customers; you may be able to skip a payment, make a reduced payment, or qualify for a rate reduction so you can get back on your feet.

If you have good credit, you may qualify for a debt consolidation loan with a low rate. You can use the loan to pay off your existing debt, and you'll have just one loan payment going forward. Debt consolidation loans tend to have much lower rates than credit cards, so this approach could help you save money (and make your payments more manageable).

Meeting with a nonprofit credit counseling agency counselor can be an important first step if your debt has gotten out of hand or you can't afford your payments. A counselor will review your finances and debt and, depending on your situation, help you develop a debt repayment plan and budget.

You can find reputable agencies through the National Foundation for Credit Counseling.

Credit card companies don't accept credit cards as payment methods because of the fees they'd incur to process the transaction; those fees would eat into their profit, which is why they only accept payments from a checking or savings account.

Whether you can use a debit card to pay your credit card bill depends on the card issuer. Some companies allow you to do so, but there may be extra steps you need to complete to use your debit card as a payment method.

For example, Chase allows you to use a debit card to pay your credit card, but you must visit an ATM to make the payment.

Plastiq is a third-party payment processor that you can use to pay vendors via credit who usually prohibit credit card payments. For a fee, Plastiq will process the payment for you.

However, Plastiq doesn't allow its service to be used to repay credit card bills.

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers.