How to Pay a Credit Card Bill From Another Credit Card

Credit card bill payment should be done on or before the credit card bill payment due date. Preferably, you should clear credit card bills at least 2 days before the due date to avoid the possibility of delay in reflecting in the credit card statement.

There are multiple options for repaying the credit card bill from your bank account. You can use net banking services of your bank, IMPS/NEFT transactions, UPI through BHIM & other third-party UPI applications such as Cred, Paytm, PhonePe, Google Pay, and through auto-debit standing instructions.

In case of fund shortfalls, paying your credit card bill using another credit card is one such option. However, using a credit card to pay the bill of another credit card attracts charges.

3 Options To Pay Your Credit Card Bill From Another Credit Card

Request Balance Transfer

Balance transfer is one of the formal processes of clearing a credit card bill by transferring the outstanding balance from one card before the credit card bill payment due date to another credit card. As a credit card user, you can choose to transfer any portion of the outstanding balance from one credit card to another credit card. 

You can transfer the entire balance if the second credit card has enough credit limit left to absorb the outstanding of the first credit card. It also depends on the monetary deficit. Assuming a credit card bill of Rs 75,000 and you’ve only Rs 25,000 in the bank account. Now you can choose to transfer the entire Rs 75,000 from one credit card to another credit card, or you can prefer to transfer only the shortfall amount, i.e., Rs 50,000.

The cost of transferring the balance from one credit card to another credit card hovers from 2-5%. Therefore, you should be very careful while requesting a balance transfer as a higher amount will attract a higher transactional fee. Following a successful balance transfer, a card member can enjoy an interest-free period of up to 50 days.

You should choose a credit card that can provide a breather of at least a month, otherwise a balance transfer becomes a loss-making transaction as compared to the fee & charges levied on paying the minimum balance only. 

Withdraw Cash

You can try withdrawing cash using a credit card from an ATM. The cash withdrawn can be either deposited directly into the account of another credit card or you can deposit the same into a savings bank account and then pay the credit card bill online. 

Cash withdrawals through a credit card are always restricted to an upper limit, therefore you can’t withdraw a higher amount even if your credit limit is completely free. Cash advances made through a credit card are subject to a cash advance fee that can vary for different banks. The minimum cash advance fee is 2%, it can go up to 3.5% of the cash advance amount. Some banks charge a minimum cash advance fee of Rs 500, irrespective of the cash advance amount. 

You should avoid withdrawing cash through a credit card to pay another credit card bill if the credit card bill exceeds the permissible withdrawal limit. Moreover, you should consider the additional fee before opting for cash advances from a credit card as banks levy higher interest rates and penalties if cash advances are not repaid on or before the due date. 

Wallet Top-Up

With the rising penetration of digital payments, you can also use a digital wallet to pay a credit card bill. Just top-up the e-wallet of any app using a credit card that allows you to transfer wallet funds to a bank account. Digital wallet companies charge a transactional fee of 2-3% to load wallets through a credit card. You can then transfer money from your wallet to the bank and clear the credit card bill by online payment. 

To stop misuse and curb wallet loads, credit card issuers now charge 1% of the transaction amount on wallet top-ups through a credit card. This fee sits over the wallet load charge levied by e-wallet companies. 

Conclusion

Paying a credit card bill using another credit card is an option but it involves a transactional fee that makes this a costlier alternative. As an active and aware credit card user, you should remain careful with credit card spending and check the areas of overspending. It is not advisable to use a credit card to clear the dues of another credit card as it becomes a repetitional habit. There is always room for exceptional circumstances, but you should refrain from spending beyond your repaying abilities as such actions can disturb your finances, savings, and investments.