How to Pay a Credit Card Bill Using another Credit Card?

Posted on Tuesday, August 27th, 2024 | By IndusInd Bank

Managing multiple credit cards with differing interest rates and due dates is tough. You must pay your credit card bills on time to avoid penalties and debt accumulation. One of the ways to repay bills, including your credit card bills, is by using your credit card.  

Ways to Pay Credit Card Bill with another Credit Card

You can only pay your credit card bill with another credit card through indirect payment methods like a balance transfer, cash advance, or e-wallets.

Credit card companies and banks discourage this mode of payment, since it leads to additional fees and higher interest rates, which could lead to a worsening financial situation for you as a customer. However, if this is your last resort for the time being, then here are three ways to pay your credit card bill with another credit card:

• Balance Transfer: You can transfer your outstanding credit card balance to another credit card (which offers a lower interest rate) to pay your credit card bill. Here are the steps that you must follow to pay your credit card bill using the balance transfer option:
  • Confirm the amount that must be transferred: Check your credit card bill and confirm the amount that you need to pay using balance transfer. Doing so will help you choose a balance transfer credit card with the required credit limit.
  • Research and compare balance transfer credit cards online: You must prioritise credit cards with a low interest rate while researching balance transfer credit cards online. You can compare these cards using an online credit card EMI calculator. Be sure to check the duration of the no-interest period.
  • Check the fees charged for a balance transfer: Banks charge a transaction fee worth 2-4% of the transferred sum when a customer opts for a balance transfer. You must contact the bank to know more about this fee while comparing credit cards, as it could change depending on the bank.
  • Apply for a balance transfer credit card: You can do so by downloading the bank’s mobile banking app or visiting its website.
  • Check your credit limit before initiating the balance transfer: Before initiating a balance transfer, you must check your balance transfer credit card’s credit limit again. Exceeding this limit might lead to the transfer not going through or could also incur penalty charges.

• Cash Advance: If credit card A is the credit card whose bill you wish to pay and credit card B is the card you are using to pay the bill, here are the steps you must follow:
  • Check your cash advance limit on credit card B: A cash advance limit is the amount that you can withdraw as cash from an ATM. It is usually lower than your overall cash limit. You must check the cash advance limit on credit card B to check if you can use that card to pay the bill for credit card A.
  • Withdraw cash using credit card B from an ATM: Next, you must visit an ATM that accepts cash withdrawals using credit cards. Insert credit card B, enter your PIN, and withdraw the required amount.
  • Deposit this cash into your savings account: You can now deposit this cash into your savings account. You can visit a bank branch and fill a deposit slip with your account number and the amount you are depositing.
  • Log in to your mobile banking app: Next, log in to your mobile banking app by entering your username and password.
  • Pay your bill: You can now use the money deposited in your savings account to pay the bill for credit card A.

• E-wallet or UPI: Another way you can use one credit card to pay off another credit card’s bill is through an e-wallet or UPI app. Here are the steps you can follow:
  • Sign up for an e-wallet: E-wallets like Google Pay help you make instant fund transfers using your bank account. You can also link these to UPI to facilitate online fund transfers.  
  • Link your credit card to an e-wallet: You must log in to your e-wallet app, add the details of the credit card through which you wish to pay the bill, such as the card number and CVV (Card Verification Value), and verify the card as the last step.
  • Transfer funds from your credit card to your e-wallet: You can now transfer funds by choosing your linked credit card as the source of funds to pay another card’s bill.

Also Read: How to Pay Credit Card Bills Using UPI?

Pros and Cons of Paying a Credit Card Bill Using another Credit Card

In Summary

There are three ways of paying your credit card bill using another credit card – a credit card balance transfer, a cash advance, and an e-wallet. These are indirect methods of paying your credit card bills and are not recommended by banks since they can lead to higher interest rates, higher fees, and debt accumulation.

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Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.