Using a credit card entails paying a monthly bill for any payments you make with it. As with most financial instruments, payment of a credit card bill is mandatory on its due date every month. Failing to do so attracts charges and fees from the provider of the credit card.
Making the payment of a credit card bill within the due date has the benefit of improving your credit score and presents a responsible image of yourself to your lenders. However, at times, you could be at a crossroads when it comes to paying the amount due on your credit cards. This is when you may ask some common question like, how can credit card balance transfers save you money? Or, how you can pay credit card bill from another credit card.
Although making payment of one credit card from another may not be free or instantaneous, it may become important at times. One of the ways to make this happen is through a balance transfer. This means that you will be transferring your debt from one card to another.
Using these features can usually some with a substantial fee. Choosing a balance transfer option between two cards might also come to affect your credit score, so it is a wise idea to assess your risks before doing so.
Things to Consider Before Paying Your Credit Card Bill From Another Credit Card:
Before deciding to make a payment on one credit card with another, make sure that you understand the rates of interest applicable on both. If you transfer your balance from a card with a higher interest rate to a lower one, you will be able to lower your debt faster than operating the other way around. You can easily catch up on your credit card debt by opting for a card service with a 0% APR for the first few months.
Here’s how you can settle your credit card bills using another credit card.
Methods To Pay Off A Credit Card Bill Using Another Card
Broadly, there are three ways in which you can make this happen. Each of these methods may have their benefits, so it’s best to take a comprehensive look at each of these options before making your decision.
If you would like to make payment of your credit card through another one, you will need to withdraw cash through an ATM. For this, you will need to withdraw the amount for the credit card with which you would like to make the payment.
After this, you will need to deposit this amount in your checking account, after which you can make payment for the amount due. However, it is worth noting that credit card loans are not the most economical one’s today. Opting for this method may be quite an expensive way for you to settle your credit card bill.
A cash advance such as this usually attracts higher fees and considerable rates on interest. This makes this a rather expensive way to settle your credit card bills. There also won’t be any rewards waiting for you at the end of this exercise.
Choose the credit card with which you would like to make the payment. Now, transfer an amount using this card to an e-wallet and then make the payment of your credit card bill through it.
By Balance Transfer
A balance transfer is among the few ways to make payment of a credit card bill using another credit card. This exercise will also attract a fee. At the same time, it may also impact your credit score to some extent. Under this method, you will need to transfer the balance of one credit card to another to pay off a bill.
What To Do If You Are Unable To Pay Your Minimum Bill Amount?
At times, you may find yourself in a tight spot with your monetary obligations. In times like these, covering up your minimum payment obligations with another credit card may be the only option available. It is always a good idea to assess your situation from time to time and find out if you are facing a problem with your payments.
While communicating an extreme situation with your lenders may be an option at times, you can always cover up most payments by transferring money from one credit card to another one. This is, in fact, an interest saving method where you can move your debt obligation from a high-interest credit card to a low-interest one.
You can expect to pay a fee on this method which may range between 3-5%, calculated on the amount which you transfer between the cards. However, you should know that there are no rewards on transferring balances, and at times, they can take a considerable time to process.
Pushing your credit cards to their limit can be a harmful practice for your financial health. Before you decide to check how to pay credit card bill from another credit card, decide on how to pay your credit card bills using the methods mentioned above. If you choose to transfer the balance from one card to another, ensure that the activity does not push any credit card close to its defined limit.
Also, after you transfer the balance to one card, you may have to start making bigger payments on that card to which the balance is transferred. This will be even more vital in case the amount transferred is huge. Missing payments on such credit card may affect your credit health to a large extent.
Also, making only the bare minimum payments may never get you out of your debt, so in case you are upset with the services of one card service provider and do not wish to continue it, the better idea is to simply stop using it. Cancelling your account with the provider will simply backfire by affecting your credit score negatively. Thus, if you do have a debt on the card, you can choose any of the methods mentioned above to settle it.