Can You Pay a Credit Card With a Credit Card?

Credit cards are a convenient way to pay for everyday purchases but can land you in debt quickly if not managed carefully. If you’re juggling multiple credit card balances or looking for ways to pay off your credit card debt, you might be wondering if you can pay one credit card with another.

The short answer is no—at least not directly. But there are ways to move debt between cards or use one card to pay off another. In this guide, we’ll tell you what you need to know about credit card payments, balance transfers and paying off credit card debt.

Understanding Your Credit Card Bill

All credit cards aren't created equal—annual fees, interest rates and payment terms can vary widely, depending on the card issuer. When opening a new credit card account, you can save money by shopping around and comparing the fees and benefits of different cards. 

It’s also important to understand 2 key dates on your credit card bill. The billing cycle date is the last day of your billing period, typically lasting about a month. All transactions made up to this date will appear on your current statement. The payment due date is the date you need to make at least the minimum payment by to avoid late fees—usually 21-25 days after your billing cycle ends.

Why Can’t You Pay a Credit Card With Another Credit Card?

Credit card agreements generally prohibit customers from using one credit card to make a payment on another because it creates greater financial risk for credit card companies. But there are other options for managing debt on one credit card with another credit card.  

Balance Transfers vs. Cash Advances

While you can’t directly pay your monthly bill with a credit card, you can manage debt on one credit card with a balance transfer or cash advance from another credit card. Balance transfers, in particular, can help you save on interest as you pay down your debt.

• Balance transfers move debt from one credit card to another, typically offering a lower interest rate. Many credit card issuers (including Navy Federal Credit Union) offer balance transfer options to existing cardholders. These transfers often come with promotional rates, such as a low or 0% intro APR for a set period. Before initiating a balance transfer, however, make sure to carefully read all the terms and conditions.
• Cash advances allow you to draw cash from one credit card, which you can use to make payments toward another card. However, this option may come with significant drawbacks. Most advances are subject to fees (often 5% of the amount withdrawn or higher), and that amount is added to your balance. Interest also starts accruing immediately—there’s no grace period. Cash advances should only be used as a last resort in emergency situations! 

Remember, a balance transfer doesn’t involve borrowing more money. You’re simply moving an existing balance from one card to another, potentially with more favorable terms. Remember that you can’t transfer balances between 2 cards from the same financial institution.

Balance Transfer or Cash Advance? 6 Things to Consider

Thinking about using a credit card to pay a credit card? When deciding between a balance transfer and a cash advance, here are some things to consider:

1. Time. Balance transfers are typically initiated by the receiving bank and may take a few days to process and settle, similar to other credit card transactions. Cash advances provide immediate access to funds but come with significant drawbacks.
2. Amount. Balance transfers allow you to move existing balances between cards, potentially up to your credit limit on the receiving card. Cash advances often have stricter limits and shouldn’t be viewed as a way to borrow more.
3. Credit score. Good to excellent credit is typically required to open a new card for favorable balance transfer offers. If you have an existing card, you can move balances at any time with no additional credit check. Cash advances don’t require a credit check but can negatively impact your credit utilization ratio.
4. Interest rates. Balance transfers often come with low (or 0%) intro APR offers for a set period. Cash advances usually have higher rates than regular purchases and start accruing interest immediately.
5. Fees. Compare balance transfer fees (typically 3-5%) with cash advance fees (often 5% or more of the advanced amount).
6.  Repayment. Balance transfers can provide more time to pay off debt, especially with intro APR periods. If you need to resort to a cash advance, it’s crucial to repay it as quickly as possible to minimize interest charges.

Ultimately, while a balance transfer is often the more cost-effective choice for managing credit card debt, there may be situations where a cash advance is necessary. Make sure you understand the terms and conditions and weigh your options carefully!

Pro Advice About Credit Card Debt

Feeling overwhelmed by credit card debt? Get a handle on your finances with help from a credit counseling agency—look for one accredited by the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). They’ll assess your financial situation and help you understand your options. In some cases, they may recommend negotiating with your creditors to reduce interest rates and penalties by creating a structured debt repayment plan. You’ll make a single monthly payment to the counseling agency, which will disburse funds to your creditors.

Credit counseling agencies and financial advisors typically charge fees for their services, which can vary based on the complexity of your situation. Carefully check the credentials of anyone offering financial advice and avoid those promising unrealistic results or demanding large payments upfront.

Get Help From Navy Federal Credit Union

If you’re facing credit card debt challenges or want to take charge of your personal finances, reach out to a financial advisor at Navy Federal Credit Union today.