Unfortunately, you are not allowed to use another credit card to pay off a credit card. Aside from the fact that it is impossible, it is also not a good idea to pay up debt with another debt. However, if you still insist on this method, there is a way you can make it work. By using bank transfers and cash advances.
Before making a decision, it is important to be fully aware of all your options. This article will outline each method and its benefits so that you can make an informed decision. ..
How To Pay Off A Credit Card Using Another Credit Card?
The Balance Transfer Method: This is the most common method used to transfer money. It involves transferring money from your checking or savings account to your bank account. The advantage of this method is that it is quick and easy. You can also use this method if you have a high balance in your checking or savings account. The Cash Advance Method: This is a more advanced method used to transfer money. It involves borrowing money from a lending institution and then paying it back over time. The advantage of this method is that it can be more expensive than the Balance Transfer Method but it can be faster and easier to complete.
Credit Card Payment Using Balance Transfer
This is a great way to get rid of debt and improve your credit score. ..
Introductory or promotional rates on cards can help you pay off your debt more quickly.
While a balance transfer may be a pro in the short term, there are also cons. The low-interest rate might not last for a long enough time, and if you are not aware of its expiry date, you might end up paying the standard interest rate which can be more expensive than what is expected from your debt.
Another downside to balance transfers is that they often come with a service fee. This means you’ll be charged for every balance transfer you do, depending on the provider. Sometimes this fee is fixed, while other times it’s based on the amount transferred. ..
The main downside to using balance transfers is that you can’t transfer a balance from an existing card to another existing card. You have to open a new account and a new lender, which can be time-consuming and may affect your credit score. ..
Before you make a balance transfer, it’s important to discuss the details with your new card lender. This will help to ensure that the transfer goes smoothly and that both you and the lender are comfortable with the agreement. ..
Credit Card Payment Using Cash Advance
Cash advance can be a helpful tool for people who have a lot of credit card debt. By removing money from your credit card against your line of credit, you can reduce the amount of debt you owe and make your payments on time.
There are a lot of disadvantages to this method. First, you will be charged ATM withdrawal service fees. Secondly, the credit card you are withdrawing from might have withdrawal fees. Depending on the service provider, it could cost you about 3% of the amount you are withdrawing. ..
Cash advances are usually more expensive than balance transfers, and have no grace period that lets you pay the interest rate for a while. The interest rate starts accumulating from the day you make the withdrawal.
There are consequences to not being able to pay off your credit card debt in time. If you miss your payment or have delayed payment, it would greatly affect your credit score. If your negative balance lingers on for a few months, your account will be suspended and eventually goes.
Before you think that you have gotten away from that, you haven’t. Your account statement will be sent to Credit Bureaus and it will remain on your record for a long time making it difficult for you to open another credit account or even access credit in the future. ..
Conclusion
If you can, using the balance transfer method can help you get off one debt. But, keep in mind that the debt doesn’t disappear as you will be incurring another debt on another account. ..
Cash advances are a bad idea. The fees are outrageous and the pressure to pay back is much greater than with a balance transfer. There is simply no pro to using a cash advance over a balance transfer.
