You have reached the due date for your Credit Card payment, but your funds are running low for some reason. The idea of paying your Credit Card bill with another Credit Card might seem like a quick fix to avoid late fees and penalties. But is it possible? While the concept may sound tempting, it is essential to understand the intricacies behind this process of paying a Credit Card bill using another Credit Card in India and its potential implications.
Can I use one Credit Card to pay off another?
The short answer is yes, but not directly.
Credit Card companies typically do not allow you to pay off your Credit Card bill directly using another Credit Card. However, there are alternative methods to achieve this, each with its own set of benefits and considerations.
While it is possible to pay Credit Card bills through methods like balance transfers, cash advances, or e-wallets, it's generally not recommended as a go-to solution. Resorting to this can incur additional fees, accrue higher interest charges, and potentially worsen your financial situation if not managed with acute financial prudence. Always consider the long-term implications of such a move for your financial health.
How to pay Credit Card bill from another Credit Card
Exploring the available avenues to pay credit card bill using another credit card can provide you with flexible solutions in times of financial strategy planning. Here's how you can navigate this process:
Credit Card payment through balance transfer
Opting for a balance transfer Credit Card could be a savvy move if you're grappling with hefty debts on an existing card. This method involves transferring your outstanding balance to another Credit Card, typically one with a lower interest rate, for a smoother repayment experience.
Keep the following points in mind, though, before you proceed:
- Choose a balance transfer card that offers an attractively lower interest rate.
- Be aware that a balance transfer can have a temporary impact on your credit card CIBIL score.
- A transaction fee, often ranging from 2% to 4% of the transferred sum, is usually applicable.
- Be cautious to avoid reaching or exceeding your credit limit, which can affect your card utilisation ratio.
Credit Card payment through cash
Should a balance transfer not be viable for you, consider settling your Credit Card bill with cash. Here’s how you can approach this method:
- Withdraw the necessary sum from an ATM using the Credit Card intended for payment.
- Deposit this cash into your Savings Account.
- Utilise this money to clear your Credit Card bill.
However, it’s crucial to weigh this option against your financial backdrop, as ATM withdrawals on a Credit Card will come at a high interest rate.
Credit Card payment through e-wallets
E-wallets stand out as another practical option for Credit Card bill settlements. To use this method:
- Transfer the needed funds from your Credit Card to the chosen e-wallet.
- Use the e-wallet balance to pay off your Credit Card bill.
How to pay a Credit Card bill using another Credit Card without charges?
Paying Credit Card dues using another Credit Card without charges is generally not possible. However, there are indirect methods you can use, though they often come with fees:
- Cash advance: You can withdraw funds from one Credit Card to pay the bill of another but be prepared for significant interest and cash advance fees, typically ranging from 2.5% to 3.5%.
- Digital wallets: Add funds to a digital wallet via a Credit Card and use it to settle the balance of another Credit Card.
Pay Credit Card bill with another Credit Card: Benefits
Tapping into the potential of one Credit Card to clear the dues of another can sometimes yield financial advantages and rewards.
Earn rewards: Utilise the benefits of reward points and cashback offers by using one Credit Card to pay off another.
Avoid late fees: Ensure timely payments and avoid late fees, thereby maintaining a good credit score.
Manage debt: Consolidate debts and possibly secure lower interest rates to manage finances better.
Faster payments: In urgent situations, this method can offer a quick solution to settle dues.
Pay Credit Card bill using another Credit Card: Cons
While it may appear as a convenient option, paying a Credit Card bill with another carries its own set of risks, possibly leading to an increased debt burden.
Accumulating fees: Utilising one Credit Card to pay another can often result in additional charges, such as balance transfer fees or cash advance fees, which can add to your debt.
Higher interest rates: If the balance on the new Credit Card isn’t paid off within the promotional period (if any), you could be subjected to higher interest rates, compounding the debt further.
Credit score impact: High utilisation of your credit line and opening multiple accounts in short periods can negatively influence your credit score.
When it comes to handling your Credit Card needs, Axis Bank Credit Cards are designed to make your life better, not just easier. They offer more than just a way to pay; they're your entry into a world full of perks. Imagine getting rewarded every time you dine out, travel, or shop. That's what Axis Bank Credit Cards are all about—turning your everyday spending into exciting experiences while keeping your finances on solid ground.
Also Read: Understanding Credit Card billing cycle
FAQs
Will paying Credit Card bill from another Credit Card affect my credit score?
It can, especially if the process leads to higher utilisation rates or if the balance transfer is not managed properly.
Can I pay a Credit Card bill with a Credit Card from the same bank?
This depends on the bank's policies. Typically, intra-bank transfers of this nature are not permitted.
How do I transfer a Credit Card payment to a Credit Card?
This can be done through balance transfer, cash, or e-wallet option, where you can transfer the outstanding balance from one Credit Card to another, often at lower interest rates.
Can I use my Credit Card to pay someone else's Credit Card?
Indirectly, yes. Through cash advances or funding an e-wallet, you can use your Credit Card to pay off someone else's Credit Card bill.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
