You can use one credit card to pay another, but the method matters and the costs are usually high
Yes, you can use one credit card to pay off the balance on another credit card. The most common way is a balance transfer, where you move debt from one card to another, usually at a lower interest rate for a set period. You can also use a cash advance from one card to pay another, though this is more expensive. A third option is to use a credit card to fund a personal loan, then use that loan to pay off the card. Each method has different costs, timelines, and consequences for your credit score.
The reason people consider this is usually to lower their interest rate or consolidate multiple balances into one payment. But moving debt around does not erase it — it just changes where you owe the money and how much interest you pay while you do. Understanding which method fits your situation, and what it will cost you, is the difference between a useful tactic and a costly mistake.
Key Takeaways
- A balance transfer moves your debt to a new card at a lower rate, usually for 6 to 21 months, but charges a one-time fee of 3 to 5 percent of the amount transferred.
- Cash advances from one card to pay another are possible but expensive, with interest rates often 5 to 10 percentage points higher than your regular purchase rate and fees of 3 to 5 percent.
- Using a credit card to fund a personal loan avoids some fees but requires approval for the loan and takes longer to complete.
- All three methods affect your credit score in the short term by increasing your credit utilization and adding a hard inquiry, though the long-term impact depends on whether you reduce the total debt.
- The real goal should be paying down the balance, not just moving it — without a plan to stop using the cards, you can end up owing more than you started with.
How balance transfers work and what they cost
A balance transfer is the most common method. You open a new credit card or use an existing one that offers a balance transfer option, then request that the card issuer pay off your old card's balance. The new card charges a balance transfer fee, typically 3 to 5 percent of the amount you move. So if you transfer $5,000, you will pay $150 to $250 in fees added to your balance.
The advantage is the introductory rate: most balance transfer cards offer 0 percent interest for 6 to 21 months, depending on the card and the issuer. During that period, your entire payment goes toward the principal instead of interest. After the introductory period ends, the regular purchase rate kicks in, which is usually 15 to 25 percent.
The catch is timing. You have to pay down the balance during the 0 percent window. If you still owe money when the rate expires, you will suddenly start paying interest on whatever remains. A $5,000 transfer with a $250 fee becomes $5,250 in debt. If you pay $200 per month for 21 months, you will have paid $4,200 and still owe about $1,050 when the rate changes. That remaining balance will then accrue interest at the regular rate.
Cash advances: possible but expensive
You can use a cash advance from one credit card to pay off another. You withdraw cash using the first card — either at an ATM, through a bank teller, or by requesting a check from the issuer — then use that cash to pay the second card's balance.
This method is almost always more expensive than a balance transfer. Cash advances typically charge a fee of 3 to 5 percent, the same as a balance transfer fee. But the interest rate is different: cash advances usually carry a higher APR than purchases, often 5 to 10 percentage points higher. So if your card's purchase rate is 18 percent, the cash advance rate might be 25 percent. Interest also starts accruing when ready — there is no introductory 0 percent period.
A $5,000 cash advance with a 4 percent fee costs $200 upfront. If you pay $200 per month at 25 percent interest, you will pay roughly $1,300 in interest alone before the balance is gone. Compare that to a balance transfer at 0 percent for 21 months: you pay only the $250 fee and no interest if you finish paying within the window. Cash advances make sense only if you have no other option and plan to pay the balance very quickly.
Using a personal loan funded by credit card
Another route is to use a credit card to fund a personal loan, then use the loan to pay off the credit card. Some lenders allow you to fund a personal loan by transferring money from a credit card to your bank account, or by having the lender deposit the loan directly into your account and then paying the card yourself.
Personal loans typically have lower interest rates than credit cards — often 6 to 36 percent depending on your credit score and the lender — and a fixed repayment schedule of 2 to 7 years. The advantage is predictability: you know exactly how much you will pay each month and when the debt will be gone. There is no surprise rate increase after an introductory period.
The disadvantage is that this method takes longer to set up. You have to explore for the loan, wait for approval, and then arrange the transfer. It also adds a hard inquiry to your credit report and a new account, which temporarily lowers your score. If you use the credit card again after paying it off with the loan, you can end up owing on both the loan and the card.
How each method affects your credit score
All three methods will lower your credit score in the short term. A balance transfer or cash advance increases your credit utilization — the percentage of your available credit you are using — on the new card. If you transfer $5,000 to a card with a $10,000 limit, your utilization jumps to 50 percent. High utilization signals risk to lenders and lowers your score by 10 to 50 points, depending on how high it goes.
Each method also triggers a hard inquiry, a check that lenders do when you explore for new credit. Hard inquiries lower your score by a few points and stay on your report for 12 months. Opening a new card for a balance transfer adds a new account to your report, which also lowers your score initially because it reduces your average account age.
The long-term impact depends on what you do next. If you pay down the balance and stop using both cards, your utilization drops and your score recovers within a few months. If you pay off the old card but keep using it, or if you transfer the balance but then run up new debt on the original card, you end up owing more than you started with and your score stays low.
When moving debt makes sense and when it does not
Moving debt from one card to another makes sense if you have a specific plan to pay it down during the introductory period. A balance transfer at 0 percent for 21 months is worth the 3 to 5 percent fee if you can pay $250 per month on a $5,000 balance — you will be debt-free before the rate changes and will save thousands in interest compared to paying at 18 to 25 percent.
It does not make sense if you have no plan to reduce the balance. If you transfer $5,000 and keep using the old card, you will owe $5,000 on the new card plus whatever new balance you run up on the old one. You will also have paid a fee for the privilege. The debt has not gone down; it has just been reorganized.
A personal loan makes sense if your credit score qualifies you for a rate significantly lower than your card's rate — say, 12 percent instead of 20 percent — and you can commit to a fixed payment schedule. A cash advance makes sense only if you need the money when ready and have no other option, because the interest rate is so high that the debt grows quickly if you cannot pay it off within a month or two.
The real question: can you stop using the cards?
The most important factor in whether moving debt helps or hurts is whether you stop accumulating new debt. If you transfer a $5,000 balance to a new card and then run up $3,000 in new charges on the old card, you have not solved the problem — you have made it worse. You now owe $8,250 across two cards instead of $5,000 on one.
Before you move debt, decide whether you will close the old card, freeze it, or stop using it. Closing a card when ready lowers your credit score because it reduces your total available credit and increases your utilization on other cards. Freezing or stopping use is gentler on your score and keeps the account open, which helps your credit history. But it requires discipline: the card has to stay in a drawer or at home, not in your wallet.
If you cannot commit to stopping the spending, moving the debt will not help. The real work is changing the behavior that created the debt in the first place — spending less than you earn and building a buffer so unexpected costs do not go on a card.
Frequently Asked Questions
Will transferring a balance hurt my credit score?
Yes, but temporarily. The hard inquiry and new account lower your score by 10 to 50 points in the first month. Your utilization on the new card will also be high. However, if you pay down the balance over the next few months, your score will recover and eventually improve as your utilization drops and the inquiry ages off your report.
Can I transfer a balance to a card from the same bank?
Most banks allow balance transfers between their own cards, though some restrict transfers from cards you have owned for less than a few months. Check your card's terms or call the issuer to confirm. The fee and introductory rate are the same whether the cards are from the same bank or different ones.
What happens if I do not pay off the balance before the 0 percent period ends?
The regular purchase rate takes over. If you owe $2,000 when the introductory period ends and the regular rate is 20 percent, you will start paying interest on that $2,000 at 20 percent APR. You will also continue paying interest on any new charges you make on the card.
Is it better to transfer a balance or take out a personal loan?
A balance transfer is usually cheaper if you can pay off the balance within the introductory period, because you avoid interest entirely. A personal loan is better if your credit score qualifies you for a much lower rate than your card offers and you need a longer repayment timeline. Compare the total cost: the balance transfer fee plus any interest after the intro period ends, versus the total interest on the personal loan.
Can I transfer a balance from a credit card to a debit card?
No. Debit cards draw from your bank account and have no credit line, so there is nothing to transfer to. You can only transfer a credit card balance to another credit card or use a cash advance to pay a debit card account, but that is not a balance transfer — it is a withdrawal.