The straightforward answer: paying one credit card with another
You can pay a credit card balance using another credit card, but the method matters because the costs are very different. 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, but this costs significantly more in fees and interest. A third option is to use a third-party payment service, though these typically charge a percentage fee.
The reason people consider this move is usually to lower their interest rate or consolidate multiple balances onto one card. But moving debt between cards does not erase it — it just changes where you owe the money and how much interest you pay while you pay it down.
Key Takeaways
- A balance transfer moves your debt to a new card at a lower rate, usually with a one-time fee of 3 to 5 percent of the amount transferred.
- Balance transfers work best if you can pay down the debt during the promotional period, which typically lasts 6 to 21 months depending on the card.
- A cash advance from one card to pay another costs 3 to 5 percent upfront plus a much higher interest rate (often 25 to 30 percent), making it the most expensive option.
- Third-party payment services charge 2 to 3 percent per transaction and should only be used if balance transfer and cash advance options are not available.
- After moving the debt, your old card account usually stays open, which can help or hurt your credit score depending on how you use it.
Balance transfers: the most common and usually cheapest method
A balance transfer lets you move debt from one card to another, usually one with a lower interest rate or a promotional 0% APR period. You contact the new card's issuer and tell them the old card's account number and the amount you want to transfer. The new card company pays off that balance on your old card, and you now owe the new card instead.
Most balance transfer cards charge a one-time fee of 3 to 5 percent of the amount transferred. If you move $5,000, expect to pay $150 to $250 upfront. This fee is usually added to your new balance, so you owe slightly more than you transferred. The real savings come from the promotional period — typically 6 to 21 months at 0% APR, depending on the card. During that time, every dollar you pay goes toward the principal instead of interest.
The catch is that the 0% rate expires. After the promotional period ends, the regular APR kicks in, usually 15 to 25 percent. If you still carry a balance at that point, you will pay interest on whatever remains. This is why balance transfers work best if you have a concrete plan to pay down the debt before the promotion ends.
Cash advances: expensive and best avoided
A cash advance means borrowing money directly from one credit card and using that cash to pay another card. You can get a cash advance at an ATM, bank, or through a convenience check that comes with your card. The money arrives quickly, but the cost is steep.
Cash advances typically charge an upfront fee of 3 to 5 percent, just like a balance transfer. But unlike a balance transfer, there is no promotional period — interest starts accruing when ready, usually at a rate of 25 to 30 percent APR. That rate is often higher than your regular purchase APR on the same card. If you take out a $5,000 cash advance, you pay $150 to $250 in fees plus interest from day one.
Use a cash advance only if you have no other option and can pay it back within a few weeks. For any longer-term debt movement, a balance transfer or a personal loan will cost far less.
Third-party payment services and their fees
Some companies offer to pay your credit card bill using another card on your behalf. These services charge a fee — usually 2 to 3 percent of the payment amount — and handle the transaction for you. They are useful if your card issuer does not allow direct card-to-card payments or if you need to move money quickly.
The downside is that you are paying a percentage fee every time you use the service. If you regularly move $2,000 between cards, a 3 percent fee means you pay $60 each time. Over a year, that adds up. These services are best used as a one-time solution, not a regular strategy.
Before using a third-party service, check whether your card issuer allows direct balance transfers or accepts payment from another card's debit function. Many do, which means you can avoid the extra fee entirely.
How balance transfers affect your credit score
Moving debt between cards triggers a hard inquiry on the new card process, which temporarily lowers your score by a few points. Once approved, the transfer itself does not hurt your score — in fact, it can help if you lower your credit utilization on the old card.
Credit utilization is the percentage of your available credit that you are using. If you had a $10,000 limit on your old card and owed $8,000, your utilization was 80 percent. After transferring that $8,000 to a new card, your old card shows $0 owed, dropping your utilization to 0 percent. This can raise your score over time.
The risk is closing the old card after the transfer. Closing an account reduces your total available credit, which raises your utilization ratio across all your cards. It also removes a line of credit history from your report. The better move is to leave the old card open and unused, or use it occasionally for small purchases you pay off in full each month.
When to use each method: a comparison
| Method | Upfront Cost | Interest Rate | Best For |
|---|---|---|---|
| Balance Transfer | 3–5% fee | 0% for 6–21 months, then regular APR | Moving debt you can pay down within the promotional period |
| Cash Advance | 3–5% fee | 25–30% APR from day one | Emergency short-term borrowing only |
| Third-Party Service | 2–3% per transaction | Depends on receiving card | One-time payment when direct transfer is not available |
What happens to your old card after a balance transfer
After you transfer a balance, your old card account stays open unless you close it. The account shows a $0 balance, but the account itself remains active. You can still use the card for new purchases if you want, though most people leave it untouched to avoid adding new debt.
The card issuer may lower your credit limit or close the account on their own if you do not use it for a long period — typically 6 months to a year of inactivity. Some issuers charge an annual fee on inactive accounts, though most do not. Check your cardholder agreement to see the issuer's policy.
Keeping the old card open helps your credit score because it preserves your available credit and your credit history length. If you are concerned about overspending, you can ask the issuer to lower your limit or straightforward leave the card at home.
Frequently Asked Questions
Can I transfer a balance to a card from the same bank?
Most banks do not allow you to transfer a balance between their own cards. You typically need to transfer to a card from a different issuer. Check with your bank's customer service to confirm their specific policy, as some have exceptions.
What if I do not have a credit card with a lower rate available?
If you cannot get approved for a balance transfer card, a personal loan from a bank or credit union may offer a lower rate than your current card. Personal loans have fixed terms and rates, making them predictable. You can also contact your current card issuer to ask about a lower rate, though they are not required to offer one.
How long does a balance transfer take to complete?
Most balance transfers take 5 to 14 business days to post. During that time, you are responsible for payments on both the old and new card. Once the transfer completes, you owe only the new card. Ask the new issuer for a confirmation number and expected completion date.
Can I transfer a balance multiple times to keep getting 0% rates?
Yes, you can transfer balances between cards to extend a 0% period, but each transfer charges a fee and triggers a hard inquiry. After two or three transfers, the fees and inquiries may cost more than the interest you save. This strategy works only if you are actively paying down the debt each time.
What if my balance transfer is denied?
A denial usually means the issuer thinks you are too high-risk based on your credit score, income, or debt level. You can reapply after improving your credit score or reducing your existing debt. In the meantime, focus on paying down your current balance to lower your utilization ratio.