Credit Card Payment: How to Pay Using Another Credit Card
While making credit card payments by credit card may sound unusual, you can pay your bill using another credit card with substitute methods. You can manage your credit card bill payments by applying various strategies like balance transfers, cash advances and e-wallets.
Since opting for these methods may lead to additional charges and higher interest, understanding them is crucial for healthy financial management.
Various Methods to Pay Bills
Paying credit card bills on time is necessary to maintain good financial health. Doing so helps you maintain a good credit score. You can use a different credit card to pay your credit card bills. Some of the common methods you can use include:
Withdrawing From an ATM
You can opt for a cash advance to pay your credit card dues. This option lets you withdraw up to the card’s cash withdrawal limit. The limit usually varies depending on the issuer. However, there are some important points to consider while opting for this method.
- There may be a processing fee involved, which can vary depending on the service provider
- Typically, withdrawing cash using a credit card has a high interest rate and can be higher than credit card interest rates
- It can be extremely quick but is an expensive option to pay credit card bills
Transferring Balance to Another Credit Card
You can transfer the outstanding amount to another credit card which has a lower interest rate and a payment due date that is farther away. However, keep in mind the balance transfer fee that can range between 3-5% depending on the issuer. Considering this you can decide whether this method fits your payment needs. Some balance transfer cards offer a lower or zero interact rate for the first 6-9 months as a perk.
Always check your credit utilisation ratio while considering a balance transfer. A higher utilisation ratio can negatively impact your score because it indicates that you are relying heavily on your available credit.
Using E-Wallets
An e-wallet allows you to perform various transactions, including credit card bill payments. It is a simple and convenient process. You can select a digital wallet that suits your needs. You can send funds to your preferred digital wallet from your credit card to make a payment.
To do so, you only need to provide relevant information, like your credit card number. Complete the verification process by providing the one-time password from your registered mobile. Then, you can pay the credit card bill easily.
Factors to Consider
Paying credit card bills using another credit card can be a viable option. However, it is crucial to consider a few points to avoid debt accumulation and maintain good financial health. These include:
Interest Rates
Using a credit card to pay another card’s bills can attract high interest rates. If not paid quickly, it can lead to debt accumulation. Apart from that, consider paying the new credit card balance within the grace period. After that, the interest can compound over time.
Opening multiple credit accounts
Using a higher credit limit and opening multiple credit cards in a short duration can adversely affect your credit score.
Comparing Additional Charges
While all these methods are convenient for paying credit card bills, they have several charges attached. You may have to pay a transfer fee in case of a balance transfer. Cash withdrawals may entail an ATM fee and processing fee.
Consider these charges before you choose an option.
Strategies You Can Use
While there are numerous methods to pay credit card bills using another credit card, it is important to maintain a good credit score. For example, paying the complete due amount every month.
This can help you avoid the interest on the outstanding balance. You can also set reminders or use an automated payment system. That way, you can avoid missing the due dates without stress. You can also use a secured credit card to build your credit score over time if you do not have a good score or want to build your credit history from scratch.
Considering these factors, it is best to use a card that allows you to pay bills on time and manage your usage effectively. That’s exactly why you should choose the One Credit Card. It can help you set spending limits, analyse your purchases and convert big bills into EMIs with its powerful mobile app.
Moreover, you can earn 5X monthly rewards on the top two spending categories, which you can use to save on your future transactions. You can also enjoy savings on groceries, travel, shopping and more while paying zero joining and annual fees. Download the app or visit the website to apply now!
