How to pay credit card bill from credit card?

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In Canada, paying off one credit card using another isn’t directly possible, but balance transfers can be a smart alternative. They allow shifting debt between cards, often with lower interest rates—just watch for any fees. Consider cash advances cautiously due to high costs and immediate interest. Explore your options wisely for better financial health. Reach out via phone, text, or chat if you have questions.

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Pay Credit Card Bill From Credit Card Question

how to pay credit card bill from credit card Last month, I missed my credit card payment and was charged a late fee. I wondered if I could use another credit card to make the payment. I want to know if that’s possible or if it could hurt my finances.

From: Anonymous Question
Location: Oshawa, Ontario (ON)
Category: debt consolidation

Pay Credit Card Bill From Credit Card Answer

In Canada, you can’t pay off one credit card by using another directly. Credit card companies prefer you to use a bank account or other payment methods. However, don’t lose hope! You might explore balance transfers which let you shift what you owe from one card to another, often lowering your interest rate in the process. Keep in mind, though, there could be fees involved, usually in the range of 1-3% of what you’re moving, and you’ll need approval based on your credit score. Another route some folks consider is taking a cash advance from one card to cover another’s bill, but beware—this can rack up high fees and interest charges start racking up right away, so proceed with caution!

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

Using another credit card to make a payment on your current credit card bill is technically possible, as credit card companies may allow balance transfers. However, this practice can lead to increased debt and may adversely affect your credit utilization ratio, which impacts your credit score.

Review your credit card agreement and the terms regarding balance transfers, as well as any associated fees or interest rates. The Financial Consumer Agency of Canada (FCAC) provides guidance on managing credit card debt that highlights the importance of understanding the terms related to credit card usage and payments.

Consulting the relevant regulations or guidance from the FCAC on financial management practices is advisable to evaluate the potential impact on your finances before proceeding.

From: OSB Helper

Related Questions to Pay Credit Card Bill Using A Credit Card

Here are the top 5 most frequently asked questions related to paying a credit card bill using another credit card, tailored for the Canadian context:

1. What is a balance transfer fee and how does it work?

A balance transfer fee is a charge, typically 3% to 5% of the transferred amount, applied when you transfer credit card debt to a new card[3][5].

2. Can I pay a credit card bill with another credit card?

Generally, you cannot directly pay one credit card bill with another credit card, but you can transfer the balance to a new card with a lower interest rate[3][5].

3. How do I initiate a balance transfer on my credit card?

To initiate a balance transfer, contact the new credit card company, provide the account numbers of your old cards, and specify the amount you want to transfer[3].

4. Are balance transfer fees worth it?

Whether balance transfer fees are worth it depends on how much you save on interest compared to the fee; it’s beneficial if the interest savings exceed the transfer fee[3][5].

5. Can I avoid balance transfer fees?

You can avoid balance transfer fees by finding cards that offer a $0 intro balance transfer fee, usually within a specific time frame after opening the account[3][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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