Do you have more than one credit card? If so, you may be wondering how you can use one of them to pay the bill of another credit card. This process, commonly referred to as credit card to credit card payment, is not as straightforward as other payment methods. That doesn’t mean you can’t use it! It can come in handy when you’re in a fix as a balance transfer makes managing your finances a bit easier.
Here is how you can do this in simple steps.
1. Understanding Credit Card To Credit Card Payments
- Direct credit card to credit card payment isn’t allowed by most financial institutions.
- However, indirect methods such as balance transfers or using intermediaries like digital wallets can help you achieve the same goal.
Allowed Methods | Description |
Balance Transfer | Transfer outstanding balance from one card to another card at lower interest rates |
Using Digital Wallets | Add money to a mobile wallet using one card, then transfer it to another |
Cash Withdrawal and Payment | Withdraw cash using one card to pay the other’s bill |
2. Methods For Credit Card To Credit Card Payments
- Balance Transfer
A balance transfer can be the most common and cost-effective method if you want to make a credit card to credit card payment.
- Check Balance Transfer Eligibility: Contact the card issuer to see if your card allows balance transfers.
- Evaluate Offers: Look for cards with low-interest or zero-interest balance transfer promotions.
- Initiate the Transfer: Provide details of the card from which you’re transferring the balance.
- Monitor Payments: Ensure timely payments to avoid interest charges or penalties.
Pros | Cons |
Low-interest rates | Balance Transfer fees may apply |
Simplified debt management | Temporary solution for high debts |
- Using Digital Wallets
Digital wallets like Paytm, PhonePe, or Google Pay can act as intermediaries.
- Add Funds to Wallet: Link your credit card to the wallet and load funds.
- Transfer Funds to Bank Account: Use the wallet’s bank transfer option.
- Pay the Other Credit Card: Use your bank account to pay the other credit card bill.
Pros | Cons |
Convenient and quick | Wallet charges may apply |
No need for direct bank involvement | Limited wallet-to-bank transfer limits |
- Cash Advance
Though this is not ideal, you can withdraw cash from one credit card and use it to pay another.
- Withdraw Cash: Use your credit card to withdraw money at an ATM.
- Deposit Cash in Bank Account: Deposit the withdrawn cash into your bank.
- Pay the Credit Card Bill: Use the bank account to clear the other credit card dues.
Pros | Cons |
Instant availability | High cash withdrawal fees |
Useful in emergencies | Interest starts immediately |
3. Key Considerations Before Making Credit Card To Credit Card Payments
While exploring these methods, keep the following in mind:
- Understand Fees and Charges: Balance transfer fees, cash withdrawal charges, and wallet transfer fees can add up and interest applies if you do not pay by the due date.
- Check Credit Limits: Ensure the card receiving the balance has a sufficient credit limit.
- Track Your Credit Card Balance: Knowing your outstanding balance is essential to avoid exceeding limits or missing payments.
- Check CUR: Ensure that transferring the balance to another card doesn’t use up the full credit limit as high utilisation of credit can negatively affect your creditworthiness.
4. How To Know Credit Card Balance
Learning how to know credit card balance is vital for managing your credit responsibly. Here are the ways to check your credit card balance:
Method | Steps |
Bank Mobile App | Log in, navigate to the credit card section, and view the balance |
Net Banking | Log in to your account online and select the credit card to check the balance |
SMS Alerts | Send the specific keyword or code to your bank’s SMS service number |
ATM | Use your card at an ATM to check the balance |
Customer Care | Call your bank’s helpline to inquire about the balance |
5. Tips For Managing Credit Card Payments Effectively
To avoid relying on credit card to credit card payments, practice smart credit management:
- Create a Payment Schedule: Set reminders for due dates to avoid late fees.
- Limit Spending: Avoid unnecessary purchases that can inflate your balance.
- Monitor Statements: Regularly review transactions to ensure no unauthorized charges.
- Use Rewards Wisely: Opt for cashback or reward programs to maximize benefits.
- Consolidate Debt Strategically: Use balance transfers when they offer significant savings.
6. Comparing Payment Methods
Here’s a comparison of different ways to manage credit card payments:
Method | Ease Of Use | Cost | Risk |
Balance Transfer | High | Moderate | Low |
Digital Wallet Transfer | Moderate | Low to Moderate | Low to Moderate |
Cash Advance | Easy | High | High |
7. Pros and Cons of Credit Card to Credit Card Payments
Pros | Cons |
Offers debt consolidation opportunities | Can incur fees and high interest rates |
Flexible and convenient | Risk of over-reliance on credit |
By staying informed and making strategic decisions, you can maximise your credit card’s potential while avoiding unnecessary debt. To ensure that you do not overspend or forget your credit card payment, the One Credit Card can be a great choice. Its ultra-smooth mobile app, the OneCard App, sends alerts and notifies you whenever you are nearing your credit limit. What’s more? The One Credit Card is lifetime-free, so there aren’t any joining fees, annual fees or hidden charges.
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