If you want to keep your credit score from dropping, then you should always pay your credit bills on time. We all want to be fiscally responsible, but what would you do if it was time to make a credit card payment and you did not have the cash in your account? If you get creative, you can find ways to earn the money you need to make your credit card payment quickly. But can you use a credit card to pay another credit card bill? It sounds a bit strange, but it can be an option in a time of desperation.
Dealing With The Obvious
If you have an available balance on credit card A, then you cannot use that balance to make your monthly payment. Not only are you not allowed to pay a credit card bill with the card’s own line of credit, it is also something that will only help to significantly increase your credit debt.
Can You Pay A Credit Card Bill With Another Credit Card?
The short answer to this question is yes. But you should set yourself some ground rules before you pay a credit card bill with another credit card. You should always try to pay a credit card bill with another card that has a lower interest rate. This will allow you to avoid adding too much interest debt to your overall credit card situation.
You should only pay a credit card bill with another credit card in an emergency situation. While none of your credit card companies will ever stop you from using a credit card to pay another credit bill, the compounding of interest payments makes this a bad habit to get into.
Transferring Debt From One Credit Card To Another
One of the more positive ways to pay a credit card payment with another credit account is consolidating credit card debt onto one credit account. Many credit card companies give you checks with your new credit account that you can use to transfer all of your other credit debt onto one central card. As long as the new credit account has a lower interest rate than the other accounts, then consolidating your debt onto that one account will save you money.
A Couple Of The Ground Rules
There is no limit on any of your credit accounts when it comes to how many times you can pay one credit card account with a different card. However, you will not be allowed to make your payment if it will cause your credit account to go over its limit.
Some people who have credit cards that give points for purchases or some other type of incentive will use their credit card to pay another credit account to try and add to their points. For some credit accounts, paying any kind of monthly bill does not qualify for incentive points. Be sure to check with your credit card company before making a payment on another credit account to see if that sort of transaction qualifies for incentive points.
In an emergency situation, you can use one credit card to make a monthly payment on another credit card account. While this type of transaction is not always a good financial practice, it can help to make sure that you make your credit payments on time.
Jim Treebold is a North Carolina based writer. He lives by the mantra of “Learn 1 new thing each day”! Jim loves to write, read, pedal around on his electric bike and dream of big things. Drop him a line if you like his writing, he loves hearing from his readers!