Can You Pay a Credit Card With a Credit Card & Is It Smart?

A balance transfer is a handy financial tool that lets you transfer your outstanding balance from one card to another (ideally with a lower interest rate) to save money on interest and pay off your debt faster.

What are the key things to know about balance transfers?

Balance transfers typically come with an introductory period of low or 0% interest for a specific amount of time (usually between 6 to 18 months).

After the introductory period ends, the interest rate on the balance transfer card usually rises. The trick is to pay off the balance before that happens to dodge those higher rates.

And it’s not just interest rates you have to keep an eye on. Balance transfers also come with fees (usually around 2% to 3% of the transfer amount). So don’t forget to do your calculations before making the transfer.

Last but not least, not all credit cards allow balance transfers—some might have restrictions or limits on the amount you can transfer. So double-check with your issuer before walking headfirst into a closed door.

All in all, balance transfers can help, but you’ll need a good dose of discipline and careful planning to successfully pay everything off.

Make a solid plan to pay the transferred balance before the introductory period ends and to avoid racking up new debt on the old card.

To go ahead with the balance transfer, follow these steps:

1. Find a credit card that offers a balance transfer promotion. Keep an eye out for cards with a low or 0% introductory interest rate and low balance transfer fees.

2. Apply for the new credit card and provide all the right information. You might need to give details about your current credit card (like the account number and balance).

3. Once you’re approved, contact the issuer to discuss the balance you want to transfer. Be ready to give details on the name of the credit card company, the account number, and the balance amount.

4. Time to play the waiting game—the balance transfer typically takes between a few days to a few weeks, depending on the credit card issuer.

5. Once the balance transfer is complete, start making payments on the new card to pay off the transferred balance before the introductory period ends.

And try to avoid making new purchases on the old card—it’ll only add to your debt and make it harder to pay off the transferred balance.

Still unsure if this is the right method for you? Time for the classic pros and cons list to help you out—

Balance transfers can unlock lower interest rates and usually come with a promotional 0% rate for a limited time.

Some balance transfer credit cards even offer waived balance transfer fees or other incentives to help you save money.

But on the flip side, the promotional 0% interest rate on balance transfer credit cards usually only lasts 6 to 18 months.

So the clock is ticking—and if you can’t pay off your balance before the promotional period ends, you’ll be stuck with a higher interest rate than your original credit card.

Before going down this route, note all the potential balance transfer fees, promotional interest rates, and the length of the promotional period.

Don’t skimp on the fine print, and do your research to figure out whether a balance transfer is the right choice for you.

If you find a personal loan with lower interest rates than your credit card, you could save money on interest charges over time.

Many personal loans also come with fixed repayment terms, making it easier to budget and manage payments.

But you guessed it—there are always fees lurking around. Many personal loans come with extra charges, such as origination fees or prepayment penalties, which can bump up the cost of the loan.

Personal loans can work if you get one with low-interest rates and you’re able to pay it off. But if you're not careful, taking out a loan to pay off a credit card can lead to even more debt—especially if you keep using your cards after paying them off.

Using a cash advance to pay off a credit card can be tempting when you’re in a pinch, but this method can lead you down a bumpy road.

Starting with the (few) positives—cash advances let you get your hands on funds quickly and easily without a credit check. So those with poor credit scores are in luck.

So why do so many warn against cash advances?

Well, cash advances typically come with interest rates, usually between 3% and 5% with no grace period—so you’ll be paying interest right from the get-go.

And then, there are the extra fees, such as monthly payments and ATM fees.

Cash advances also usually come with short repayment terms, so you’ll need to pay off the advance quickly or risk getting dumped with those additional fees and interest charges.

Moral of the story—if you’re unable to pay off the cash advance pronto, it can quickly become very expensive, and add to your debt load.

If you still want to go ahead with a cash advance, take a look at the best apps for the job.

There’s more to cell phones than scrolling through endless dog videos.

Using a mobile payment app—like PayPal or Venmo—can act as an intermediary to pay off one credit card with another.

Essentially, you could use a credit card to transfer funds to a friend or family member through the mobile apps, who could then use the transferred funds to pay off your credit card balance or give you the funds to do so yourself.

This approach can come with rewards from the apps, but there are also fees to consider.

Some peer-to-peer credit card transactions on Venmo may also be seen as cash advances on Mastercard and Visa credit cards—which, as we know, come with high fees and APRs.

If you don’t have access to other payment methods—you could buy a money order, which is available at banks, post offices, and other retail locations.

Companies like Western Union and MoneyGram also let you send money to a phone number or email address.

Money orders are more secure than sending cash through the mail, as they’re usually traceable. They also don’t require a credit check, so your poor credit score won’t be a problem.

But money orders come with fees, with some banks and retailers charging extra for just purchasing the money order.

And then there’s the small matter that not all credit card issuers accept money orders as payment, with many viewing it as a type of cash advance—so make sure you double-check with your card issuer first.

If you’ve landed in debt, paying off one credit card at a time is a wise approach.

Here are some reasons why:

• Focus: Tackling multiple debts at once can be stressful. Focusing on one card at a time lets you focus your efforts and resources on one debt, which is much more manageable and less overwhelming.

• Motivation: Paying off one credit card at a time can give you a sense of accomplishment and keep you motivated as you see your debt go down while your credit score climbs up.

• Debt snowball method: Consider the debt snowball method, which involves paying off your debts in order of smallest to largest balance. Try our snowball debt spreadsheet to take the stress away from juggling your debts.

Mind you, if you have high-interest rates on your other credit cards, you could end up paying more in interest charges over time, even if you make progress on one debt.

Calling up the bank (or even the dreaded in-person visit) isn’t at the top of everyone’s to-do list. But there’s no harm in reaching out to the credit card issuer and explaining your situation.

You could get lucky and they might even offer you a payment plan or other options to help you manage your debt.

Nobody likes to admit exactly how much they spend on takeout every month—but creating a budget with our monthly template will force you to face your pizza demons and help you get to grips with expenses while pinpointing areas to cut back.

By prioritizing your payments, cutting back on unnecessary expenses, and focusing on your most important payments, you’ll quickly free up more money toward your credit card debt.

As well as saving up, you can also find ways to fill your pockets, like taking up a side hustle or selling unused items.

And if you’re braver than me—you could also ask for a raise at work (just make sure you have enough to back yourself).

Debt consolidation involves taking out a loan or credit card with a lower interest rate to pay off your existing debt.

This can make it easier to manage your payments and pay off your debt quickly (try using our debt avalanche spreadsheet).

Just keep in mind that loans often come with credit inquiries to check if you’ll be able to pay the money back—which can hurt your credit score. But this is usually temporary, and you’ll soon see that score finding its way back up when you make full and on-time payments.

No, we don’t mean to get therapy (although that’s not a bad idea). If you’re struggling alone, you could get help from an agency or financial advisor.

Nowadays, advice doesn’t come cheap, so you’ll have to cough up initial costs. But professionals can help you develop a debt management plan, negotiate with your creditors, and keep you on track in the long run.

There are plenty of free tools out there—so it makes sense to take advantage of them.

Get a free credit report from Credit Karma to stay up-to-date with your finances and score. Setting up account alerts for payment due dates can also keep you up to speed with debt repayment.

If you can’t pay off your credit card, don’t just let it simmer until it spills over.

Take action to improve your financial situation and manage your debt before it reaches boiling point.

Ian Wright, Managing Director at Business Financing, also gave some advice on staying out of debt,

If possible, set up auto payments for your recurring bills as close to your pay period as possible. This can seem daunting as it’s normal to want that money in your account for as long as possible—but doing it sooner rather than later gives you a more accurate idea of what you have left to work with.

Ian Wright Managing Director at Business Financing

Yes, in most cases, you can pay rent with a credit card.

But here are a few things to keep in mind:

• Check with your landlord or property management company to see if they allow rent payments with a credit card.

• Make sure you have a credit card with a high enough credit limit to cover your rent payment without maxing out your card.

• Consider any fees that come with paying the rent with a credit card, including processing fees and interest charges if you carry a balance on the card.

• Keep in mind that paying rent with a credit card can affect your credit utilization ratio, which is a factor in determining your credit score. Your credit utilization should be below 30% to maintain a good score.

That being said, paying rent with a credit card can also boost your credit score if you pay in full and on time, as it shows positive and trustworthy financial habits.

Yes, you can pay taxes with a credit card. Start with checking the IRS and see if your state tax agency allows tax payments with a credit card.

If they do, you’ll want to consider any fees, including processing and interest charges.

You should also make sure you have the funds to pay off your credit card balance in full when it’s due.

If you carry a balance, you’ll gather interest charges that can quickly bounce back any rewards or cashback benefits you might earn by using your credit card to pay taxes.

If you can pay off the balance in full, using your credit card to pay taxes could be a smart move.

But if you’re already carrying a balance on your card or can’t afford to pay in full, it may be better to explore other payment methods.

You can definitely pay bills with a credit card.

Here are some must-know tips:

• Check with your biller to see if they accept credit card payments. Some billers may only accept certain types of credit cards or charge extra fees for credit card payments.

• Consider any fees associated with paying bills with a credit card. Depending on your credit card issuer and the biller, you may face processing fees or other charges that can add up quickly.

• Take advantage of rewards programs. Many credit cards offer cashback or rewards for certain types of purchases, including bill payments.

• Keep your credit utilization in check. Paying bills with a credit card can increase your overall credit utilization, which is the percentage of your available credit that you're using at any given time.

Paying bills on time can also improve your credit score by showing a history of timely payments. Your payment history is the most important factor in making up your credit score (up to 35%). By paying your bills on time, you can boost your score and qualify for better credit terms in the future.

It can be difficult to pay student loans with a credit card as many federal student loans and private lenders don’t accept them as a form of payment.

But there are a couple of exceptions to consider:

• Third-party payment services: There are third-party payment services, such as Plastiq, that let you pay your student loans with a credit card. These services usually charge a fee, so you'll need to weigh the cost against any rewards or benefits you might earn from your credit card.

• Balance transfer: If you have a credit card with a 0% introductory APR on balance transfers, you could transfer your student loan balance to the card. This can be a good option if you're struggling to make payments on your student loans.

But paying your student loans with a credit card also comes with drawbacks. For one, you could end up paying more in interest if you don’t pay off your credit card balance in full each month. And if you’re not careful, you could end up building more debt on your credit card.

While it may be possible to pay your mortgage with a credit card, it’s generally not recommended.

Many mortgage lenders don’t accept credit card payments because of the high fees that come along with processing them.

So you might need to use a third-party service to make the payment with a credit card (which certainly isn’t cheap).

If you decide to use a third-party service to pay your mortgage with a credit card, you’ll probably be charged a fee. This can range from 2% to 4% of the transaction amount, which can add up quickly if you’ve got a large mortgage payment.

We know it’s tempting to try to earn rewards or cashback by paying your mortgage with a credit card—but keep in mind that the fees and interest charges can quickly outweigh any benefits.

If you want to pay off your mortgage fast, check out our mortgage payoff tool.