Credit Cards

Can You Pay a Credit Card Bill With Another Credit Card?

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FALLING DEEPLY IN DEBT on a credit card with a high interest rate might tempt you to whip out a second card to pay off the bill. But can you really do that?

“The short answer is ‘no,'” says Paul Golden, director of media relations for the National Endowment for Financial Education in Denver.

Golden says credit card companies typically will not allow you to use one credit card to directly pay the debt on another card. That reluctance is largely due to fees associated with processing. “It’s very expensive for credit card companies to transact that way, so they typically do not allow it,” he says.

So, to pay off one credit card with another, you need to get creative. “There are workarounds,” he says.

The two primary ways to use a second credit card to pay debt on a first credit card are to:

  • Take a cash advance on the second card.
  • Use a balance transfer to move the debt from the first credit card to the second card.

Golden sees potential drawbacks with each of these approaches. “I don’t see a lot of pros, particularly with the cash advance,” he says.

The Pros and Cons of Cash Advances

Taking a cash advance against a second credit card is one way to pay debt on the first card.

“Theoretically, you could [get a] cash advance off of one credit card, deposit it into your checking account and then pay another credit card from there,” Golden says…..Read more>>