Paying a credit card bill using another credit card can be a convenient option in certain situations, such as cash flow shortages or to maximize rewards. However, it’s not always straightforward and requires careful consideration to avoid high costs and debt traps. This SEO-friendly guide explains the process, its implications, and how it can help build CIBIL score if managed wisely.
Can You Pay a Credit Card Bill with Another Credit Card?
Directly paying one credit card bill with another credit card is generally not allowed by most banks in India, as it’s treated like a cash advance or balance transfer, which incurs fees. However, you can use indirect methods to achieve this. By understanding these methods and making timely payments, you can build CIBIL score effectively. Apps like ZetApp can help track your transactions and ensure you stay on top of your payments to build CIBIL score.
Methods to Pay Credit Card Bill Using Another Credit Card
Third-Party Payment Platforms: Platforms like Paytm, Cred, or Mobikwik allow you to pay credit card bills using another credit card. For example, on Cred, select “Pay Bill,” choose your credit card, and use another card as the payment method. These platforms may charge a processing fee (1-2%), so compare costs. Timely payments via these apps can help build CIBIL score by maintaining a positive payment history.
Balance Transfer: Some banks offer balance transfer facilities, allowing you to move the outstanding balance from one credit card to another with a lower interest rate. For instance, HDFC or SBI may provide promotional balance transfer rates (e.g., 12% for 6 months). Contact your bank to initiate this, ensuring the new card has sufficient limit. Repaying the transferred amount on time will build CIBIL score.
Cash Advance (Not Recommended): You can withdraw cash from one credit card at an ATM and use it to pay another card’s bill. However, cash advances attract high fees (2.5-5%) and immediate interest (30-40% APR). This method should be a last resort, as it can harm your credit utilization and CIBIL score if not repaid quickly. Instead, focus on strategies that build CIBIL score, like full repayments.
Steps to Pay via Third-Party Platforms
Choose a Platform: Download apps like Cred or Paytm.
Link Your Cards: Add both credit cards to the app securely.
Select Bill Payment: Choose the card whose bill you want to pay.
Pay with Another Card: Select the second credit card as the payment method.
Confirm and Pay: Verify the amount, accept any fees, and complete the transaction.
Track Payments: Use apps like ZetApp to monitor due dates and build CIBIL score with timely repayments.
Pros and Cons
Pros:
Flexibility: Helps manage cash flow during tight months.
Rewards: Some cards offer cashback or points on bill payments, boosting benefits.
Credit Score: Consistent payments can build CIBIL score.
Cons:
Fees: Processing fees (1-2%) or balance transfer charges apply.
Interest Risk: Unpaid balances on the second card accrue high interest.
Credit Utilization: Using multiple cards increases utilization, potentially lowering your score.
Tips for Responsible Payment
Pay Full Balances: Avoid paying only the minimum due to prevent interest accumulation and build CIBIL score.
Monitor Utilization: Keep credit usage below 30% across both cards.
Set Reminders: Use apps to get payment alerts and maintain a strong payment history.
Avoid Frequent Use: Reserve this method for emergencies to prevent debt.
Conclusion
Paying a credit card bill using another credit card is possible through third-party platforms, balance transfers, or cash advances, but it comes with fees and risks. By choosing cost-effective methods and repaying promptly, you can manage finances and build CIBIL score. Use financial apps to track payments and ensure responsible credit use for a healthy financial future.