Direct credit card payments are not allowed by most card issuers
You cannot pay a credit card bill by entering another credit card number directly into the payment system. Visa, Mastercard, American Express, and Discover all prohibit their member banks from accepting credit card payments for credit card balances. If you try to make this payment through your card issuer's website or phone line, the transaction will be declined.
The restriction exists because credit card payments are treated as cash advances when processed through another credit card. A cash advance carries a higher interest rate than a regular purchase — typically 3 to 5 percentage points above your standard APR — and begins accruing interest when ready with no grace period. The card networks and issuers built this rule to prevent people from accidentally triggering expensive cash advance fees and rates.
However, there are workarounds that accomplish the same goal, though each has its own cost and timing. Understanding which method fits your situation requires knowing what each one actually does to your balance and your interest charges.
Key Takeaways
- Credit card issuers block direct credit card payments to prevent cash advances, which carry higher interest rates and when ready interest accrual.
- Balance transfer cards let you move debt from one card to another at a lower or zero introductory rate, but charge a one-time transfer fee of 3 to 5 percent.
- Cash advances from an ATM or bank teller can pay a credit card bill but trigger the same high rates and fees as a credit card payment would.
- Convenience checks mailed by your card issuer work like cash advances and carry the same interest rate and fee structure.
- Personal loans from a bank or credit union typically charge lower interest than credit cards and let you pay off debt on a fixed schedule.
Balance transfers: moving debt to a new card at a lower rate
A balance transfer moves your debt from one credit card to another card, usually one with a promotional interest rate. The new card issuer pays off your old balance, and you owe the new issuer instead. This is the closest thing to paying one card with another, though technically the new issuer is paying the old one on your behalf.
Balance transfer cards typically offer 0 percent APR for 6 to 21 months, depending on the card and the issuer's current offers. After the promotional period ends, the regular APR kicks in. The trade-off is a balance transfer fee, charged upfront, usually 3 to 5 percent of the amount transferred. If you transfer $5,000, expect to pay $150 to $250 in fees added to your new balance.
Balance transfers make sense if you have high-interest debt and can pay it down during the promotional period. If you cannot pay the full balance before the rate increases, you may end up paying more in interest than you saved. You also need credit in the good to excellent range — typically a score of 670 or higher — to may have access to for the best promotional rates.
Cash advances: using your credit card to get cash, then paying the bill
A cash advance lets you withdraw money against your credit card's available credit. You can get cash at an ATM using your card and PIN, or visit a bank teller and request an advance. You then use that cash to pay your other credit card bill in full.
Cash advances are expensive. They charge an upfront fee — typically 3 to 5 percent of the amount withdrawn, with a minimum fee of $5 to $10 — plus a higher interest rate than purchases, usually 20 to 29 percent APR. Interest starts accruing when ready; there is no grace period. If you withdraw $1,000, you pay $30 to $50 in fees when ready, plus interest from day one.
This method only makes sense in rare situations: if your other card has a much higher interest rate and you can pay off the cash advance within days or weeks. Otherwise, the fees and interest will cost more than the debt you are trying to move.
Convenience checks: paying bills with checks from your card issuer
Some credit card issuers mail convenience checks to cardholders. These checks draw against your credit card account, not a bank account. You can write them to pay bills, including other credit card bills, and the amount is charged to your card as a cash advance.
Convenience checks carry the same fees and interest rates as ATM cash advances: an upfront fee of 3 to 5 percent and an APR of 20 to 29 percent with no grace period. They are convenient only if you receive them in the mail and have no other option; otherwise, they are a more expensive way to move debt than a balance transfer.
Many issuers have stopped mailing convenience checks because they encourage expensive borrowing. If you receive them, treat them as a last resort, not a regular payment method.
Personal loans: borrowing from a bank or credit union at a fixed rate
A personal loan from a bank, credit union, or online lender lets you borrow a lump sum at a fixed interest rate and repay it over a set term, usually 2 to 7 years. You can use the loan to pay off your credit card balance in full, then repay the personal loan on a fixed schedule.
Personal loans typically charge 6 to 36 percent APR, depending on your credit score and the lender. This is usually lower than credit card interest rates, which average 18 to 24 percent. Personal loans also have no grace period, but the interest rate is fixed and does not increase, and you know exactly when the debt will be paid off.
The downside is that personal loans require a credit check and may take several days to fund. You also pay interest on the full loan amount for the entire term, even if you could have paid off a credit card faster. A personal loan makes sense if you have significant debt, a stable income, and want a predictable repayment schedule.
Debt consolidation loans: combining multiple debts into one payment
A debt consolidation loan works like a personal loan but is specifically designed to pay off multiple debts at once. You borrow enough to pay off all your credit cards, medical bills, or other unsecured debts, then make one monthly payment to the consolidation lender.
Consolidation loans typically charge 6 to 36 percent APR and have terms of 2 to 7 years. The advantage is simplicity: one payment instead of many, and often a lower overall interest rate if your credit cards are charging 20 percent or more. The disadvantage is that you extend the repayment timeline, which means you pay interest for longer even if the rate is lower.
Consolidation loans are most useful if you have multiple high-interest debts and struggle to keep track of multiple payments. If you can pay off your credit card in a year or two, a balance transfer is usually cheaper.
Peer-to-peer lending: borrowing from individuals through online platforms
Peer-to-peer lending platforms connect borrowers with individual investors who fund loans. These loans typically charge 6 to 36 percent APR and have terms of 3 to 5 years. You can use the funds to pay off a credit card balance.
Peer-to-peer loans are an option if you have fair credit (typically a score of 600 or higher) and traditional banks have turned you down. The interest rates are often higher than bank personal loans but lower than credit card rates. The process process is usually faster than a bank loan, sometimes funding within days.
The trade-off is that peer-to-peer loans charge origination fees of 1 to 6 percent, added to your loan balance upfront. You also have less consumer protection than you would with a bank loan, since peer-to-peer platforms are not federally regulated the same way.
Frequently Asked Questions
What happens if I try to pay a credit card with another credit card?
The payment will be declined. Card networks prohibit issuers from accepting credit card payments for credit card balances. If you attempt it through a third-party payment processor, the transaction may go through as a cash advance, triggering a fee and a higher interest rate.
Is a balance transfer the same as paying one card with another?
No, but it accomplishes a similar goal. A balance transfer moves your debt to a new card with a lower interest rate. You still owe the money; you are just paying a different issuer. You will pay a transfer fee upfront, but you save money if you pay off the balance during the promotional period.
Can I use a debit card to pay a credit card bill?
Yes. Debit card payments are allowed and do not trigger cash advance fees or rates. You can pay your credit card bill with a debit card through your card issuer's website, by phone, or by mail. The payment comes directly from your bank account.
What is the cheapest way to move debt from one credit card to another?
A balance transfer is usually cheapest if you have good credit and can pay off the balance during the promotional period. A personal loan from a credit union is often cheaper if you need more time to repay or have fair credit. Compare the total cost — including fees and interest — across all options before deciding.
Do I need good credit to do a balance transfer?
Most balance transfer cards require good to excellent credit, typically a score of 670 or higher. If your score is lower, a personal loan or peer-to-peer loan may be your only option. Some credit unions offer personal loans to members with fair credit at rates lower than credit cards.