Timely credit card bill payments are crucial to avoid late fees and high interest charges. While there are several ways to clear your credit card dues, one option is to use another credit card. Though convenient, this method can increase your debt if not used wisely.
Here are the methods available for paying a credit card bill using another credit card:
Balance Transfer
A balance transfer involves moving the outstanding balance from one credit card to another.
How It Works:
- Use a credit card with a lower interest rate to pay off the dues on another card.
Important Points:
- Balance transfers often incur fees, which vary by bank.
- This method can help reduce interest costs if managed effectively.
Digital Wallets
Digital wallets have become a popular tool for financial transactions, including credit card payments.
How It Works:
- Add money to your digital wallet using one credit card.
- Use the funds in the wallet to pay the bill for another credit card.
Steps:
- Link your credit card to the wallet by entering the required details on the bank’s website.
- Authenticate the process using the one-time password (OTP) sent to your registered mobile number.
- Once linked, you can load money into the wallet and make payments.
Also read | AMERICAN EXPRESS UPTO 10% DISCOUNTS ON DELHI DUTY-FREE
Cash Advance
Cash advances allow you to withdraw money from a credit card, which can then be used to pay your credit card bill.
How It Works:
- Withdraw cash up to the advance limit set by your bank.
- Use the cash to pay the bill for another credit card.
Important Points:
- ATM withdrawals incur fees and attract higher interest rates.
- This method is generally costlier than others and should be used only in emergencies.
Key Considerations Before Using Another Credit Card for Bill Payments
- Credit Limit: Ensure the card you use for payments has sufficient credit available.
- Interest Rates: Choose the method with the lowest interest cost.
- Repayment Capacity: Be mindful of your ability to repay the additional debt.
- Associated Fees: Analyze the costs involved with balance transfers, cash advances, or digital wallet transactions.
Paying your credit card bill using another credit card can be a viable option if approached cautiously. Evaluate the risks and costs associated with each method to avoid increasing your financial burden. Always prioritize repayment planning to maintain financial stability.
For more such updates, click here.
Disclaimer: Using a credit card carries risks. Be aware of potential fees and interest charges.