Can you pay a credit card bill with another card? Here’s what actually works

Using one credit card to repay the debt or bill on another credit card is generally not permitted by banking institutions in the country. This is done to keep overall debt in check.

That said, there are a couple of fair and legitimate ways that can be deployed by credit card users to make such payments. Still, such repayments come with their own caveats and terms. Some of them are discussed below:

1. Balance transfer

• The primary method to ‘pay’ one credit card using another is through a balance‑transfer facility.
• Here, you request that your new credit card issuer pay off the outstanding balance on your old card, effectively shifting debt from one credit card to another.
• Many prominent credit card issuers in the country allow such transfers, often with lower interest rates or promos, making them attractive for debt consolidation.

2. Cash advance and paying normally

• Technically, you can take a cash advance from one credit card, withdraw cash and then deposit it into a bank account and use those funds to pay the bill of the other card.
• Still, this is one of the least recommended methods, as it carries the risk of rapid interest and debt accumulation for the credit card holder.
• This method also does not provide the credit card holders with any grace periods, thus making this option financially unfavourable.

Why does direct ‘credit‑card‑to‑credit‑card payment’ not work

• Credit card-issuing financial institutions require bill payments, whether online or through phone, to come from designated bank accounts, i.e., through banking/ NEFT/ UPI transactions, and not through another credit card.
• Credit card to credit card payments are not allowed as using one credit card to pay another effectively increases one’s overall debt burden. It is nothing but moving balances instead of clearing them.

What it means for credit card‑holders in the country

• If you are looking to clear your dues but lack funds in your bank account, the balance‑transfer route is the cleanest, most standard method. Just be sure to check fees and interest rates.
• As a sensible credit card user, you should avoid cash advances or other ‘creative’ hacks. In this way, you may end up paying more in interest and fees than you save.
• Most third-party payment applications (wallets/UPI) are not valid for direct card-to-card payments; banks require payments to be made through bank accounts.

While paying a credit‑card bill with another credit card in the literal sense is largely not permitted, opting for a balance‑transfer facility remains a practical and widely accepted way to meet such requirements. Still, one should use it judiciously, understand the fees and interest implications, and avoid cash‑advance routes unless absolutely unavoidable.

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