How To Pay A Credit Card Bill Using Another Credit Card

Quick Answer: You generally cannot pay one credit card bill directly with another credit card in India. However, depending on your card issuer and the payment service you use, you may have alternative options such as:

• Balance Transfer
• Eligible Bill-Payment Platforms
• Cash Advance

The availability, fees and terms can vary by card issuer and payment platform, so check the applicable conditions before choosing an option.

Can You Pay a Credit Card Bill with Another Credit Card?

When your credit card payment is due and you do not have enough money in your bank account, using another credit card may seem like an easy way to manage the bill. However, credit card issuers generally do not offer a direct facility to pay one credit card's outstanding balance with another credit card.

There may still be alternative ways to manage the outstanding amount. Depending on your card issuer and the payment service available to you, options may include a balance transfer, an eligible bill-payment platform, or a cash advance.

Before choosing any of these options, check the applicable fees, interest rates, eligibility requirements and repayment terms. Using one credit facility to repay another does not eliminate the debt; it simply shifts the outstanding amount from one source of credit to another.

Why Can't You Usually Pay One Credit Card Directly With Another?

Credit card payments are generally designed to be made through approved payment channels such as bank accounts, UPI, debit cards, net banking or other payment methods supported by the issuer or bill-payment platform.

A direct credit-card-to-credit-card payment is generally not offered as a standard payment option. Instead, banks may provide specific facilities such as balance transfers that allow eligible customers to move outstanding dues from one card to another.

For example, some banks offer balance-transfer facilities specifically for settling outstanding amounts on cards issued by other banks.

Ways to Pay a Credit Card Bill Using Another Credit Card

If direct payment is not available, you can consider other ways to manage the outstanding bill.

   1. Balance Transfer

   2. E-Wallet/ BBPS

   3. Cash Advance

Each option works differently and has its own costs and risks.

1. Balance Transfer

A credit card balance transfer allows eligible customers to move outstanding debt from one credit card to another card or balance-transfer facility offered by the issuer.

This can be useful when the new facility offers a lower interest rate or a structured repayment period. However, a balance transfer is not automatically cheaper. You should compare the transfer fee, interest rate, repayment period and any applicable taxes before accepting the offer.

How Does a Balance Transfer Work?

The exact process varies by card issuer, but it generally involves the following steps:

1. Check your outstanding balance

Review your existing credit card statement and determine how much you need to transfer.

2. Check your eligibility

See whether your existing or new card issuer offers a balance-transfer facility and whether you meet its eligibility requirements.

3. Compare the costs

Compare the processing fee, interest rate, repayment tenure and other applicable charges, and check how long any promotional rate remains valid.

4. Submit the balance-transfer request

Apply through the issuer's website, mobile application, net banking facility or another channel specified by the bank.

5. Continue paying the existing card until the transfer is confirmed

Do not assume that your old card's balance has been cleared until the transfer or payment is actually completed. Continue meeting the payment requirements on the existing card to avoid late-payment charges or other consequences.

6. Repay the transferred amount according to the new terms

Once the transfer is completed, follow the repayment schedule provided by the issuer.

For example, HDFC Bank currently offers a Balance Transfer on EMI facility for eligible customers to settle outstanding balances on other bank credit cards. Its published terms also specify eligibility requirements, fees and conditions.

When Can a Balance Transfer Make Sense?

A balance transfer may make sense in the following situations:

• You have a high outstanding balance.
• The new facility offers a meaningfully lower cost.
• You can repay the transferred amount within the specified period.
• The overall cost of transferring the balance is lower than the cost of continuing with the existing outstanding amount.

Do not choose a balance transfer only because the initial interest rate looks attractive. Always calculate the total repayment cost.

2. E-Wallet/ BBPS

A credit card-to-credit card payment in a digital wallet and BBPS (Bharat Bill Payment System) involves linking multiple credit cards to your digital wallets (e.g., Google Wallet, Paytm, PhonePe, etc.). Using your existing credit card, you can make outstanding payments to another card.

How To Pay Via BBPS?

• Open any of your BBPS or E-wallet portal

Download and open any of your BBPS or E-wallet portals. Search for the Credit Card Bills payment option.  

• Select your credit card issuer

Choose the credit card bill you want to pay, then enter the credit card number to    fetch the outstanding balance.  

• Select ‘credit card’ as the payment mode

On the payment screen, choose ‘Credit Card’ instead of UPI/debit card/net banking. Enter the details of the credit through which you are going to pay as the payment source.  

Review and Pay

Confirm the amount and click Pay Now. You will receive an instant confirmation via SMS and email. Make sure to note that you may also be charged a convenience fee by the platform. 

3. Cash Advance

A cash advance lets you withdraw physical cash from your credit card at a bank or ATM and use it to pay another credit card bill directly. Though this is instant, it is the most expensive financial method. These cash advances begin accruing interest immediately, and there is no grace period. 

How To Pay a Credit Card Bill Via Cash Advance?

• Withdraw cash from an ATM using another card:

Use the credit card you want to repay with from your card provider or any ATM. Withdraw the equal amount of the outstanding card’s bill. It is important to note that most cards have a cash advance limit, a certain portion of the credit limit.  

• Deposit the cash into your savings account:

Visit your card provider’s branch or use a cash deposit machine to deposit the withdrawn cash into your savings account.

• Pay the card’s bill via net banking or UPI:

Once the amount is reflected in your savings account, use NEFT, IMPS, or the net banking portal to pay your card’s outstanding bill. 

Comparison Of the Credit Card Payment Methods

**The features, application process, and all other information specified above, including rates, prices, and other critical information, are as of the date this page was created and are subject to change. Contact the relevant authority or visit their official website for accurate information.

Is Paying One Credit Card With Another a Good Idea?

Using another credit card to manage an outstanding bill can help in a short-term cash-flow situation, but it does not reduce the debt by itself.

A balance transfer may make sense when the new facility offers a lower overall borrowing cost and you have a realistic plan to repay the balance. A cash advance, on the other hand, can become expensive because of its fees and interest.

Before choosing an option, ask yourself:

• What will the total cost be?
• How quickly can I repay the amount?
• Will the new transaction increase my overall debt?
• Am I solving a temporary cash-flow problem or repeatedly moving debt between cards?

If using another card only postpones the same repayment problem, it may be better to speak with your card issuer and explore other repayment options.

Things to Check Before Using Another Credit Card

Before choosing any method, check:

• Total fees: Look beyond the headline interest rate.
• Interest rate: Find out when interest starts and how it is calculated.
• Repayment period: Check how long you have to repay the amount.
• Credit limit: Ensure the transaction does not push your utilisation unnecessarily high.
• Late-payment risk: Make sure the existing card payment is completed before the due date.
• Terms and conditions: Check whether the transaction is permitted under your card agreement.
• Total repayment cost: Compare the new cost with simply paying the existing balance over time.

Does Paying a Credit Card Bill With Another Credit Card Affect Your Credit Score?

It can affect your credit profile indirectly. The impact depends on factors such as your outstanding balances, credit utilisation and repayment behaviour.

For example, if the transaction leaves you carrying a high balance on the second card, your credit utilisation may increase. A balance-transfer facility may also involve a credit assessment, depending on the issuer and product.

The safest approach is to make payments on time, keep your outstanding balances manageable and avoid repeatedly taking on new credit to repay existing debt.

Can You Use a Credit Card to Pay Another Credit Card Bill Without Charges?

You should not assume that paying one credit card bill with another card will be free.

A balance transfer may include a processing fee, a cash advance may involve a withdrawal fee and interest, and an eligible payment platform may charge a convenience fee. The actual cost depends on the issuer, platform and transaction.

Before proceeding, check the total charges and compare them with other available repayment options.

Can You Pay a Credit Card Bill With a Cash Advance?

You may be able to use funds obtained through a credit card cash advance to pay another credit card through an accepted payment channel. However, this can be an expensive option because cash advances may attract a separate fee and interest from the withdrawal date.

Consider other lower-cost options first and use a cash advance only when you understand the total repayment cost.

Can a Balance Transfer Request Be Rejected?

Yes. Having sufficient available credit does not automatically guarantee approval.

The issuer may apply its own eligibility criteria, account requirements and internal assessment. Some facilities may also be available only to selected customers or may exclude overdue accounts or accounts that have exceeded their credit limits.

If I Pay the Bill With a Cash Advance, Will It Count as an On-Time Payment?

If the required payment is successfully credited to your credit card account by the due date, the payment can help keep the account current. However, the cash advance remains a separate amount that you must repay, along with any applicable fees and interest.

Will I Pay Interest If I Repay a Cash Advance Quickly?

A cash advance may attract interest from the date of withdrawal. Therefore, repaying it quickly does not necessarily mean that no interest will be charged. A cash advance fee may also apply.

Check your card issuer's current terms for the applicable rate, fee and interest calculation method.

Can I Continue Using My Credit Card While Repaying the Balance?

You can generally continue using your card if it remains active and you have available credit. However, adding new purchases while trying to repay an existing balance can make it harder to reduce your debt.

If you are already struggling to clear your outstanding balance, consider limiting new credit card spending until your repayment position improves.

Conclusion

Using one credit card to manage another card's bill can provide a short-term solution, but it does not make the underlying debt disappear.

A balance transfer may be useful when the new terms reduce your overall borrowing cost. An eligible bill-payment platform may provide another payment route where the required payment method is supported. A cash advance can provide quick access to funds, but its fees and interest can make it an expensive choice.

Before choosing any option, compare the total cost, understand the repayment terms and make sure you can afford the resulting payments. The goal should be to reduce your outstanding debt - not move it from one credit facility to another indefinitely.

Frequently Asked Questions

1. Can I directly pay my credit card bill with another credit card?

Usually, no. Most card issuers do not offer direct credit-card-to-credit-card bill payment as a standard payment method. However, certain indirect options may be available depending on the issuer and payment platform.

2. What is the best way to pay a credit card bill using another credit card?

There is no single option that is best for everyone. A balance transfer may be more suitable for a larger outstanding balance when it offers lower overall borrowing costs. A cash advance is generally more expensive and should be considered carefully.

3. Does a balance transfer reduce credit card debt?

A balance transfer moves the outstanding debt from one credit facility to another; it does not by itself eliminate the debt. You still need to repay the transferred amount according to the new terms.

4. Is a cash advance a good way to pay another credit card bill?

Usually, it should not be the first choice. Cash advances can involve fees and interest from the withdrawal date, making them relatively expensive. Consider the total cost and other available options before proceeding.

Disclaimer: Credit card fees, interest rates, eligibility criteria, payment methods and other terms can change and vary by issuer and service provider. Check the applicable terms on the relevant bank or payment platform's official website before making a financial decision. This article is for general informational purposes and should not be considered personalised financial advice.