Paying credit card bills on time is very important, and thankfully, there are many options you can choose from, such as credit cards, debit cards, UPIs, wallets, and more. While experts don’t recommend credit card to credit card payment because of higher interest and potential financial burden, it is an option you can use if needed.
To understand which is an ideal one, you need to compare the options. Given the number of options available, this can be overwhelming. So, here is a quick comparison of credit card to credit card payment and other payment modes for credit card bills.
Payment Of Credit Card Bill Through Credit Card
There are ways through which you can use a credit card to pay the bill of another card. Here are these modes:
Balance Transfer
You can transfer your outstanding balance from one card to another and make the necessary payment. You need to apply for a new card, which issuers may offer at 0% APR. This is generally a promotional offer, and the interest rate will go up after a while. So, you must consider the following costs before opting for this option:
- Balance transfer fees
- Credit score
- Promotional offer duration
- Approved amount limit
Assess your debt, the interest rates you are paying right now, and the cost of the balance transfer to know your actual savings.
Cash Advance
You can withdraw money using your credit card from an ATM and deposit the funds in the account to pay the bill of another credit card. However, the withdrawal charges can be higher than that for withdrawal from debit cards.
Digital Wallets
You can use your e-wallet to make a credit card to credit card payment at your fingertips. Simply transfer funds from your credit card to the digital wallet and then use it to pay the bill of another.
Pros and Cons of Paying a Credit Card Bill with Another Credit Card
Making payments of your credit card bills with another credit card can be beneficial but it comes with some drawbacks. Here is a brief overview:
| Advantages | Disadvantages |
| Reduce outstanding balance quickly | Expensive due to high interest and other fees |
| Optimise utilisation ratio | Negative impact on credit score if not managed properly |
| Avoid late payment fee | Prolonged revolving debt can lead to a debt trap |
| Accumulate reward points, if applicable | Delays can lead to high interest and other charges |
| Track and manage spending | Temporary solution as the debt has to be paid eventually |
Other Methods to Pay Credit Card Bills
A credit card is just one of the many options to pay your outstanding bill. In fact, some other methods may even be better, depending on your finances. Here is an overview of some of the modes you can choose from:
Bank Account
You can use the funds in your account to pay the bill to avoid late payment and interest charges. You will also be debt-free and restore your credit limit for the next billing cycle, allowing you to maximise your purchasing power.
Loans
You can also get a loan to consolidate your multiple debts. This is a viable option because loans generally come with lower APRs than cards. But compare the interest rates and other charges to make a cost-effective decision.
Cash
If you don’t have funds in your bank account but have cash, deposit it into your account and transfer the funds to your credit card. You can also directly pay the bill by visiting the issuer’s branch if the facility is available. This may come with a nominal charge, but you can be debt-free and avoid interest charges.
Pros and Cons of Other Credit Card Bill Payment Modes
The alternatives of credit card to credit card bill payment come with many benefits but also some disadvantages. Here is what you need to know:
| Advantages | Disadvantages |
| Avoid interest and other charges | Disrupts cash flow |
| Being debt free | Can be time-consuming |
| Restore credit limit to the full | Will attract nominal charges |
| No negative impact on credit score |
The right choice between credit and other options to pay the bill depends on your finances. If you plan to apply for a new credit card, understand the terms and conditions beforehand. This includes knowing what is a fuel surcharge on credit cards and the conditions for waivers, the rewards system, the interest-free period, processing, annual fees, and other fees. This allows you to choose the right card and get the best benefits.
The One Credit Card is an option that you can consider for high rewards and savings. You can earn 5X rewards on your top 2 spend categories and avail great offers on entertainment, travel, dining, shopping, and much more. Its One Credit Card App provides seamless onboarding, easy EMIs for your purchases, and spend analysis. Apply now to enjoy financial freedom at your fingertips.
