Credit cards allow you to borrow from your card issuer. That means it is a kind of loan as you have to pay with some interest at the end of every month. Credit card issuers give you lines of credit with a credit limit. That means you can borrow as much as you want but remain within the credit limit. The big question now remains; can you pay a credit card bill with another credit card?
You may have two or more credit cards and wish to pay the debt of one credit card with another since you do not have money to pay your existing debt. Remember, there is a danger of not paying your credit card debt on time. It can reduce your credit scores and spoil your credit history, making it challenging to access loans and lines of credit in the future.
There are various aspects that creditors check, and the main one is your payment history. How you paid your loans in the past tells it all whether you will be able to pay a loan given to you at that particular time. Remember that your payment information becomes available to other financial institutions through credit bureaus when applying for a loan or credit card. Credit bureaus are institutions that keep records about borrowers and avail them to financial institutions upon request.
How do I get a credit card?
You can only get a credit card when you apply. Banks and credit unions are the institutions that issue credit cards. Some mobile wallets also issue credit cards to people who meet specific criteria. Before getting a credit card, you have to check your credit scores from any credit bureau.
Three main credit bureaus provide information about loan and credit card users. They include TransUnion, Experian, and Equifax, and you have to purchase credit scores from them. You can also get free credit scores from Credit Karma for free.
Once you get your credit scores, you can then look around and see the credit card issuers with credit cards that match your credit scores. After getting one, you can then proceed to apply. Most credit card issuers allow you to apply for credit cards online, while others apply at physical branches. Whichever the case, you will still get a credit card. But can I get a credit card with bad credit?
The truth is that you can get a credit card with bad credit or even without a credit history at all. If you apply online, you will receive it at your physical address, activate and start using it.
Which are the different types of credit cards?
There are two main types of credit cards. We have;
- Secured, and
- unsecured
The secured credit cards allow you to deposit some amount of money to borrow against it. They are usually suitable for people with no credit history and are willing to build their credit history. You can get a secured credit card to build your credit history if you have bad credit scores as well. Once you grow your credit scores to high numbers, you can shift to an unsecured credit card.
An unsecured credit card allows you to get a credit card if you have credit scores. There are unsecured credit cards for bad credit and good credit scores, and you can only apply for an unsecured credit card if you have some credit history.
How do credit cards work?
Once you apply for a credit card, you get a line of credit. You also get a credit limit depending on your credit scores. A credit limit is the maximum amount you can borrow with your credit card. The better your credit scores, the higher the credit limit and vice Versa.
You can use a credit card like any other payment card. When you spend with the card, the amount you can borrow reduces. When you hit your credit limit, you cannot borrow any more until you clear the debt. Credit card issuers require you to pay off your debts at the end of the month.
Since credit card usage revolves, you can then resume using your card the following month. When repaying your credit card debt, you have to pay an interest rate. The more you spend, the more you pay and vice versa. It is advisable to utilize your credit limit below 30% for better scoring.
How can you use a credit card?
You can use your credit card like any other payment card to pay for goods and services. The following are ways you can use your card. Have a look.
i) Buy goods and services
You can purchase goods and services online and at physical stores using your credit card. When paying online, you will present your credit card number, CVV, and the card expiry date. You can also swipe the card at payment systems at retail stores to pay for items purchased.
ii) Withdraw money
You can withdraw money from a credit card at an ATM point. All you need is your card’s PIN and knowledge on how to navigate over the ATM screen. You can also get cash from your credit card at a bank when you withdraw over the counter. Sometimes you need cash as not all places you will be able to use your card.
iii) Send money
You can also transfer money from your credit card to other accounts online or at an ATM point. The ability to transfer money from one account to the other allows money to circulate easily. You can send money to someone miles away so that they can sort out their issues.
How do you pay a credit card debt?
Payment of a credit card debt is mandatory after every month. To pay your credit card debt, you only need to deposit the amount of money owed in your credit card account, and your card issuer will deduct it automatically. As I mentioned earlier, you have to pay the money you borrowed with your credit card plus some interest.
There is a danger of repaying your credit card dues late. You may be hit with a late payment fee that will add an extra burden to your already existing debt.
Can you pay a credit card bill with another credit card?
Now back to our main agenda of checking whether you can pay your credit card debts with another card. Yes, you can you pay a credit card bill with another credit card existing debt in two main ways. They include the following.
- Use a cash advance on one credit card to pay the other.
- Use a balance transfer.
1) Use cash advance
A credit card cash advance is a loan you get from your credit card issuer that allows you to get instant cash from an ATM, a bank withdrawal, or a check. You can easily use such cash to pay for your credit card debt as long as the cash advance is enough to settle your dues. Remember that you will still need to pay the debt later when you take cash advance from your credit card.
2) Use balance transfer
The balance transfer strategy allows you to transfer your debt from one credit card to another. It usually happens when you have seen a credit card with better terms, such as low interest on the line of credit, rewards, and higher limits. That means your current credit card does not please you at all.
Credit card issuers who allow you to transfer your balances to the new card can give you a 0% introductory APR for 12 to 21 months on your balance transfer. That means you will have an easy time settling your debts. The new card issuer then pays your old credit card debt on your behalf.
When shopping around for the best credit card for balance transfers, do not forget to check the annual fees, monthly fees, and late payment fees to ensure you get a better deal, or else you might jump from the frying pan to the fire itself.
How else can I pay my credit card dues?
You can also use the debt consolidation strategy to help you to clear your credit card debts. A debt consolidator brings all your debts, including your credit card dues, together so that you can pay them as one piece and under a particular interest rate. All those debts merge to form a single debt that should have a low interest rate to give you an easy repayment time.
Once you opt for a debt consolidation strategy, your debt consolidator pays all your debts on your behalf. The importance of consolidating your debts is to easily pay one creditor instead of having several debts. You also avoid penalties from various loan and credit card issuers when you cannot pay your loans.
Bottom line
A credit card allows you to borrow money from your issuer. You can either get a secured or unsecured credit card. Credit card issuers give you a line of credit, and you are supposed to pay the used amount at the end of every month. To pay your credit card debt, you only need to deposit money in your credit card account. You can use a credit card like any other payment card.
