How to Pay a Credit Card Bill with a Credit Card? Pros and Cons You Need to Know

Using a credit card benefits you in more ways than one. But you must also ensure that you pay the bills on time to enjoy continued benefits. There may be a situation where you may not be able to pay the bill and your pending dues will attract compounding interest. There are many ways to pay your bills, and using a credit card is one of them. 

While using one of your credit cards to pay off another credit card can be an option, the shuffling of debt comes with high interest fees and other disadvantages that you must consider. One of them is that banks monitor debt swapping and can restrict your transactions or cancel credit cards. 

Pros and Cons of Paying Your Credit Card Bills with Another Credit Card

While paying your credit card bill with a credit card benefits you, it also has some drawbacks which you must weigh before making a decision. Here is an overview of them:

Advantages

• Reduce outstanding balance by transferring funds to another financial body. 
• Manage your credit utilisation by paying the bill with a card that has a surplus limit. 
• Get a cash advance as a short-term loan for an emergency.
• Helps you track and better manage your transactions.
• Avoid late payments and compound interest charges.
• Earn rewards points or other benefits, depending on the card and issuer.

Disadvantages

• Swapping your debt across your credit cards instead of paying it can lead to a debt trap. 
• The charges can be high, making it a costly option. Some credit cards offer promotional interest-free offers on balance transfers for new cardholders, but the interest can be high after the promotions period. 
• If you don’t pay the bills on time or if the utilisation ratio is too high on one of the cards, it can negatively affect your credit score. 
• Delays in payments can lead to penalties and high interest charges, which can be difficult to manage.

Should You Pay a Credit Card Bill with a Credit Card? 

You can pay your credit bills using a card-to-card payment method fOne Credit Cardor your convenience. But remember to use this facility on a need-only basis. This is because there are pitfalls like high interest charges and accumulating debt that make it risky. 

To avoid this, you can try some of the following strategies to pay your bills on time:

• Set monthly reminders to ensure you have enough to arrange the funds and pay the bills
• Sign up for reminders from the issuer to pay the bills
• Monitor your transaction to ensure the bill does not exceed your budget
• Pay more than the minimum, if not the entire bill, whenever possible
• Choose cards with low APRs and charges to keep costs minimal whenever applicable

How Can You Pay a Credit Card Bill from Another Credit Card?

If you do decide to shuffle your balance from card to card, there are several methods you can try, such as balance transfers and cash advances. Here is an overview of the different ways you can try:

Balance Transfer

This is preferred over cash advances for many reasons, including credit card benefits and low cost. Here, you transfer your funds from one credit card to another. Suppose you have a high outstanding balance and a significant interest charge. In that case, a balance transfer can help transfer your funds to another credit card that offers a lesser interest charge.  

While transferring fees to another credit card, you pay a processing fee. Calculating the amount you will save by shuffling funds is essential. To be cost-effective, your savings must be more than the processing fee and the additional costs. 

Cash Advance

You can borrow funds from available credit. You can access the cash advance facility and withdraw cash from an ATM. Note that you don’t get an interest-free period on this and the transaction attracts interest from the first day.

Digital Wallet

You can transfer funds to your digital wallet from one credit card and use it to pay the bill of another. Depending on the wallet, there may be a transaction fee involved. Check these charges to ensure you choose the most cost-effective option.

Choosing the right card is the easiest way to ensure you can pay the bills without any hassles. This is where the One Credit Card comes in. You can quickly pay the bill in just a few taps on the powerful One Credit Card App. You can set auto pay on the app or utilise the option of paying in easy EMIs. 

You can apply for the credit card online if you haven’t and get it instantly to enjoy up to 5X rewards on your top two spend categories. Its powerfule app will allow you to better manage your finances and get offers on its exclusive partner brands. Apply now and elevate your financial freedom to a new level.