At one point or another, many people find themselves in a lean month when a credit card bill weighs a bit heavier than would have been preferred. When savings are low, the idea of paying one credit card bill using another credit card can sound tempting and almost brilliant. While it is not a habit to rely on, there are situations where it can be done right without hurting your finances or credit score.
Understand what you are actually doing
In most cases, when a credit card bill is being paid with another credit card, it is not a direct swipe or any transfer. Banks hardly ever allow direct 'card to card' payments. In actuality, you are using features such as balance transfer, credit card loans, or third-party payment platforms, which convert your amount into a form the card issuer would accept. Knowing that saves you from unrealistic expectations and hidden costs.
Balance transfer is the cleanest option
The most straight-line method is balance transfer. Most banks facilitate transferring your dues from one card to the other, often at lower interest rates for a limited period of time. This works if your new card has a promotional offer like zero percent or reduced interest for several months. You still need discipline, as once the offer period ends, interest rates could rise sharply.
Using card to wallet or card to bank routes
Some such payment apps permit you to load money from a credit card into a wallet or bank account, for a fee. That money can then be used to pay another credit card bill. While this route works, it typically involves processing charges-a range between 1 percent and 3 percent. It should only be used if the cost were less than the interest one was to pay.
Watch fees and interest carefully
The balancing act makes sense only if one does the numbers correctly. Processing fees, GST, interest-free periods, and repayment timelines all matter. Paying Rs 40,000 from one card using another might look like relief today, but if fees and interest pile up, this can become more expensive than expected.
While doing so, protect your credit score
Timely payment is very important. Even if you are using another credit card as a bridge, make sure the original card bill is paid before the due date. Missing a due date can hurt your credit score, no matter how creative your payment method is. Also avoid maxing out the second card, as high credit utilisation can impact your score.
Use this as a temporary solution, not as a habit
Paying one credit card with another should be treated as a short term fix, not a lifestyle choice. If this situation repeats often, it may be a sign that expenses need to be reworked or debt needs to be consolidated properly.
Thoughtfully used, the approach buys time and breathing room. Used casually, it quietly deepens debt. The difference rests in a question of planning, math, and self-control.
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