How to Pay Credit Card Bill With Another Credit Card?

15 January, 2024

Do you have multiple Credit Cards? If yes, you might wonder how to pay a Credit Card bill using another Credit Card. The idea seems appealing as it is convenient, but most card issuers prohibit paying your Credit Card bill this way. Paying one Credit Card bill with another Credit Card only adds to your debt. While you cannot use your Credit Card directly to settle your Credit Card bills, you employ indirect payment methods. Read on to learn about them.

How to Pay a Credit Card Bill from Another Credit Card?

Some of the ways to pay your Credit Card bill from another Credit Card are as follows:

• Balance Transfer 
  
  Balance transfer is the process of transferring the outstanding balance of your Credit Card to another Credit Card. You can move all or a small portion of the balance from one Credit Card to another based on your preference. The process enables you to pay the excess balance on your previous card using the new card after the balance transfer is complete. Also, the new card will likely have a lower interest rate, and the Credit Card provider will offer a no-interest period for the first few months where interest is not applicable on the principal. This facility allows you to make repayments with ease.
  
  

Here are some points to note while making a balance transfer:

• The cost of transferring the balance from your Credit Card to another card attracts a fee ranging from 3%-5%. You can consider this cost against the benefits to decide if a balance transfer is the right choice for you.
  
  

• You will be charged interest on the outstanding amount if you miss out on making the payment on time, even during the interest-free period.
  
  

• Opting for a balance transfer might affect your credit score slightly.
  
  

• During a balance transfer, you must ensure that the credit utilisation ratio does not exceed or get too close to the credit limit.
  
  

• If the lower interest rate on the new card is promotional, it will last typically for a period of 6 to 18 months and reset to the usual rate later.

• Cash Advance
  
  If you want a quick solution to pay a Credit Card bill from another Credit Card, you can opt for a cash advance. With a cash advance, you can withdraw money through an ATM that accepts Credit Cards for cash withdrawals. You can withdraw an amount up to a specific cash advance limit set by your card issuer and pay your Credit Card bill.
  
  

Some points to note before you proceed with a cash advance include the following:

• Cash advances attract a higher interest rate, often more than those applicable to regular Credit Card purchases.

• If you opt for a cash advance, you must pay a cash advance fee, which is typically 2.5% to 3% of the amount withdrawn.

• ATM cash advances generally prove to be an expensive choice for Credit Card bill payments. Thus, you must consider your financial situation before using this facility.
  
  

Digital Wallet

Digital wallets are a convenient method to store money online. You can easily access these wallets to make all kinds of payments, including Credit Card bill payment. To use your Credit Card to pay a Credit Card bill of another card, you can load the money into your preferred e-wallet apps, from the various types available. Some are third-party apps, while others are backed by the trust of your bank. You can choose an option that best suits your interests.

The online process of loading the e-wallet with your Credit Card is simple and takes only a few minutes. You can simply enter your card details and authorise the payment through an OTP sent to your Registered Mobile Number. Once done, you can use the amount in the wallet to pay your other Credit Card’s bill with ease.

Summing It Up

All three methods of paying Credit Card bills with another card offer convenience. However, you must utilise this facility only on a need-basis as you can find yourself in a debt trap. This method of paying your Credit Card dues is not the solution to the problem, but a quick fix when you don’t have any other option. Thus, it helps to conduct a cost-benefit analysis before using your Credit Card to pay off another card’s bill. Moreover, you may face an issue in using funds from your Credit Card if you exceed the Credit limit.

Get an HDFC Bank Credit Card for Easy Credit Card Bill Payments

No matter the approach you decide to pay your Credit Card bill, you need a smooth interface to complete the payment process seamlessly. HDFC Bank ensures this with its user-friendly website and intuitive mobile banking app. By following just a few simple steps, you can pay your Credit Card bill on time. We also send reminders so you never miss your payments. Moreover, you can easily access all your Credit Card information on the go.

Enjoy instant and effortless bill payment facilities with HDFC Bank Credit Cards. Apply Today!

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit Card approvals at the sole discretion of HDFC Bank Limited. Credit Card approvals is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.