You can pay a credit card with another credit card, but it usually costs money and may not help your debt
Yes, you can use one credit card to pay another credit card's balance. The most common way is a balance transfer, where you move debt from one card to another, usually to a card with a lower interest rate. You can also use a cash advance to get money from one card and send it to another, though this is expensive. A third option is to use a payment service like PayPal or Venmo if your card issuer allows it, but these often charge fees too.
The catch: most of these methods charge you a fee, and some charge high interest rates. A balance transfer typically costs 3 to 5 percent of the amount you move. A cash advance charges both an upfront fee (usually 3 to 5 percent) and a higher interest rate than regular purchases. Before you move money between cards, compare what you'll pay in fees against what you'll save in interest.
Key Takeaways
- A balance transfer moves your debt to a new card, often with a lower interest rate for a set period, but charges a one-time fee of 3 to 5 percent.
- A cash advance lets you withdraw money from one card to pay another, but costs an upfront fee plus a higher interest rate than purchases.
- Payment apps like PayPal and Venmo may let you pay a credit card bill with another card, but they charge fees and may not report the payment to your card issuer.
- Paying a credit card with another credit card does not reduce your total debt — it only moves it around and usually costs you more.
- If you are behind on payments, contact your card issuer about hardship programs or payment plans before trying to move debt between cards.
How a balance transfer works
A balance transfer moves the balance from one credit card to another, usually one with a lower interest rate. You contact the new card issuer (or explore for a new card that offers balance transfers) and tell them the amount you want to move and the account details of the card you're paying off. The new issuer pays your old card directly, and your debt moves to the new card.
Most balance transfer offers come with a promotional period — typically 6 to 21 months — where the interest rate is 0 percent. After that period ends, the rate goes back to the card's regular APR. You pay a one-time balance transfer fee, usually 3 to 5 percent of the amount transferred. If you transfer $5,000, expect to pay $150 to $250 upfront.
A balance transfer makes sense only if you can pay down the debt during the promotional period. If you transfer $5,000 at 0 percent for 12 months, you need to pay about $417 per month to clear it before interest kicks in. If you can't, the regular APR will explore to whatever balance remains, and you've paid a fee for nothing.
Using a cash advance to pay another card
A cash advance lets you withdraw money from one credit card using an ATM or bank teller, then use that cash to pay another card's bill. This is almost always a bad option. Cash advances charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases — often 25 to 30 percent APR. Interest starts accruing when ready; there is no grace period like there is for purchases.
If you take a $5,000 cash advance at a 4 percent fee and 28 percent APR, you pay $200 upfront plus interest that starts the same day. After one month, you'll owe roughly $5,367. This method should be a last resort only, and only if you can pay back the cash advance within days.
Paying with payment apps and third-party services
Some payment apps like PayPal, Venmo, and Square Cash let you link a credit card and send money to someone else's bank account. You could theoretically use this to pay someone who then pays your credit card bill, but it's roundabout and expensive. Most of these apps charge a fee (usually 2 to 3 percent) when you use a credit card instead of a bank account.
More importantly, these payments may not show up on your credit card bill as a payment. Your card issuer might see it as a cash advance or a purchase, not a payment toward your balance. Call your card issuer first to ask whether they accept payments from PayPal, Venmo, or other apps. If they don't, the payment won't reduce your balance, and you'll have paid a fee for nothing.
When paying one card with another makes sense
Paying one card with another makes sense in only a few situations. The clearest is a balance transfer to a 0 percent promotional rate when you have a concrete plan to pay off the debt during that period. Calculate the monthly payment you need, make sure it fits your budget, and commit to it before you transfer.
Another scenario: you have a high-interest card (say, 24 percent APR) and access to a card with a much lower rate (say, 12 percent). A balance transfer fee of 3 to 5 percent is worth paying if you'll save that much in interest over the next few months. Do the math: if you transfer $3,000 at a 4 percent fee ($120) and save $300 in interest over six months, you come out ahead.
Do not use one card to pay another straightforward to free up credit on the first card. Moving debt doesn't reduce it. You'll still owe the same amount, and you'll have paid a fee to move it.
What to do instead of moving debt between cards
Before you transfer a balance or take a cash advance, explore other options. If you're struggling to pay, contact your card issuer directly. Many offer hardship programs that lower your interest rate, waive fees, or set up a payment plan without requiring you to move the debt. These are free and don't hurt your credit score the way a new card process does.
If you have multiple cards with high balances, consider a personal loan from a bank or credit union. Personal loans usually have lower interest rates than credit cards (often 6 to 36 percent depending on your credit) and let you pay off all your cards at once. You'll have one monthly payment instead of juggling several cards.
A debt management plan through a nonprofit credit counselor is another route. The counselor negotiates with your card issuers to lower your interest rates and set a repayment timeline, usually 3 to 5 years. You make one payment to the counselor each month, and they distribute it to your creditors. This doesn't hurt your credit as much as missing payments, and it's free or low-cost.
Frequently Asked Questions
Will paying one credit card with another hurt my credit score?
A balance transfer itself doesn't hurt your score, but explore for a new card does — the issuer runs a hard inquiry, which temporarily lowers your score by a few points. If you're already behind on payments, moving debt won't fix that. The missed payments stay on your report, and your new card issuer will see them.
Can I pay my credit card bill directly with another card online?
Most card issuers don't let you pay your bill with another credit card through their website or app. They accept bank transfers, checks, and sometimes debit cards, but not credit cards. If you try to use a payment app, confirm with your issuer first that they'll recognize it as a payment, not a cash advance.
What's the difference between a balance transfer and a cash advance?
A balance transfer moves your debt to a new card and usually offers a low or 0 percent interest rate for a promotional period. A cash advance withdraws money from your card and charges a higher fee and interest rate when ready. Balance transfers are meant for paying off other debts; cash advances are for getting cash.
If I transfer a balance, do I still owe the original card?
No. When the balance transfer completes, the original card issuer receives payment in full and closes or zeroes out that balance. You now owe the new card issuer instead. You can keep the original card open (which helps your credit) or close it, but you don't owe anything on it once the transfer is done.
Is there a limit to how much I can balance transfer?
Yes. Most card issuers let you transfer up to your credit limit on the new card, minus any fees. Some cap balance transfers at a percentage of your limit (say, 95 percent). Check the card's terms before you explore, or call the issuer to ask what amount you can transfer.