June 12, 2024
New Delhi
Finance How to

How to Pay Credit Card Bill from Another Credit Card?

How to Pay Credit Card Bill from Another Credit Card

Credit cards are a kind of borrowing facility that banks provide to their customers. The financial institutions allow their customers to borrow money up to a certain credit limit. Credit cards give the opportunities to customer to purchase goods and services. The credit limit is set by the credit card issuer and is determined by a number of factors, such as credit score and income.

Credit cards allow you to spend freely and are considered a useful tool for managing your finances. By using a credit card, you can access a world of ease and have the freedom to manage a range of charges. Your credit card is trustworthy, and the latest technology enables you to purchase goods online or in person, make travel or hotel reservations, paying utility bills easily. The cardholder remains confident while handling both small and large expenses.

Also Read: How to Increase Kotak Credit Card Limit?

Benefits of using a credit card.

  • Easy shopping

Shopping becomes easier and simpler when you have a credit card. You may be able to keep any extra costs out of your monthly budget by using a credit card. If you have a credit card, accepting EMIs is a cost-effective way to buy products and services. There’s also a very common and prevalent option of “Buy Now, Pay Later”. Salary-based borrowers with set monthly incomes are the ideal candidates for this choice.

  • No need to carry cash:

Credit cards are the best alternative to cash since they eliminate the need to carry cash. Credit cards are accepted almost anywhere. If you’re short on money, you can use your credit card to pay your bills and settle the balance at the end of each month. Making transactions is a simple procedure. Simply enter your card information online or swipe it at the payment counter at the time of payment.

  • Rewards and discounts:

A credit card is very famous for providing rewards and discounts that fulfil cardholders’ requirements and expectations and make it a perfect choice. The credit card issuer might provide cashback, special deals, and other advantages to create temptation among the public.

  • Great help in an emergency:

This type of loan assures you that it will cover your family’s unexpected expenses. You need not worry about how to cover any suddenly generated costs. Never forget that timely payments are essential to avoid excessive interest rates and an increased annual percentage rate.

  • Enhances Credit Score

Some people also use credit cards as a tactic to improve their credit scores. It’s considered one of the key elements in determining a borrower’s eligibility. When you pay off your credit card bill on time, your credit score becomes higher, and getting loans becomes easier.

  • Easy Cash Withdrawals 

Having a credit card also gives you the opportunity to withdraw cash as and when needed. It is essential to keep in mind that making cash withdrawals by using your credit card imposes a modest fee that may be reimbursed after the debt is settled.

  • Widely accepted 

Credit cards are the most accepted form of payment worldwide, which makes them the most extensively used payment method. For bookings, any ticket, payment of restaurant bills, lodging facilities, retail stores, petrol pumps, and airports, you can use your credit card anywhere. Travelling abroad is made easier by it. 

Methods of paying a credit card bill with another credit card.

It is a fact that a credit card mostly supports you during tough circumstances. But, at the same time, it’s important to return the amount on schedule to prevent paying heavy penalties in the form of interest and late fees to the credit card company. The penalty amount on your credit card account may sometimes go higher than the real amount. Sometimes, using another credit card to pay bills of one credit card may be a good option, even though the credit card payment requires sufficient funds in the account.

Using another credit card to pay a debt is not allowed by most credit card companies; still some credit card issuers provide this type of service, and you may pay bills of one credit card from another credit card indirectly by using some other options. At the same time, you should remember that you may face a heavy financial burden if you use these options, as the company may impose additional fees and higher interest rates.

 If you want to use one of your credit cards to make payments on another credit card, you have three alternatives: 

  1. By applying for a balance transfer.
  2.  By using cash.
  3.  Making use of an e-wallet.

By applying for a balance transfer.

A balance transfer option can be used as in this option, the outstanding debt is moved from one credit card to another if this other card’s interest rate is lower. A balance transfer occurs when all or part of a credit card debt is transferred from one account to another.

 The detailed information of the credit card whose balance you wish to transfer must be disclosed to the new credit card issuer for the transfer process to start. Specially, this information contains the card number, the issuer’s name, and the remaining balance. Your new credit card issuer will pay off your previous debt after the balance transfer process is completed. Now, you can begin making transactions with the new card.

Things to Remember Before Transferring a Balance:

  • There a balance transfer fees, which usually range from 3% to 5% of the amount that is transferred. Annalise this expense when you decide to go ahead with a balance transfer.
  • Credit card issuers provide promotional interest rates, which are available for a short time, often ranging from six to eighteen months. The interest rate comes back to its standard level at the end of the promotional period.
  • The balance transfer may have a bad effect on your credit score. So, check the data before using the new card for balance transfer.
  • After your balance transfer of credit card, you still need to make your regular payments. A balance transfer does not pay off your debt. If you fail to repay this amount, this could lead to higher interest rates and other costs.

Process to pay the credit card bill with another credit card through balance transfer.

  • Contacting the credit card company is necessary if you want to transfer your debt.
  • You must verify your eligibility for balance transfer and make sure that you are aware of all transfer restrictions. It would help if you stayed in touch with the credit card company by using the phone numbers.
  • Send an online request for a balance transfer by going to the issuer’s website, logging into your account, and submitting it.
  • The information you need to share about the debt includes account details, the total amount owing, and the issuer’s name; all the information must be provided.
  • Send a phone request about the balance transfer. Contact your issuer’s customer service department to initiate a balance transfer. Get all of the information you’ll need.
  • You should know that it could take the issuer up to two weeks or more to approve and process your balance transfer request. In addition, you should keep paying the old debt each month until the transfer is finished.
  • Since these are direct transactions, you should regularly check your previous account. Not receive a notification after the transfer of the balance is completed.
  • The payment will be made up of the outstanding balance plus a processing charge, which is usually between 3% and 5% of the transferred amount. As a result, you will need to check your account to make sure the money has been placed.
  • Pay off your balance transferred from one credit card to another. 

You must follow the terms and conditions of the new agreement after your money has been moved. Get an introductory 0% APR on balance transfers with the new card and benefit from interest-free payments while the offer is in effect.

By using cash:  When you go for this option, you can use your other credit card and withdraw cash from an automated teller machine (ATM). Deposit the money in your bank account, and then pay your credit card bill online from your bank account.

Using your credit card to make an ATM withdrawal carries a high-interest rate that might cost you a lot of money. It makes this the riskiest method of paying off your credit card debt.

Making use of an e-wallet:

Using digital wallets is an additional method of making credit card payments to your account. Since they provide a quick and easy way to make payments, digital wallet usage has increased significantly in India. You can use your credit card to add money to these wallets and pay for expenses on other cards.

Final words.

You can use balance transfers to pay one credit card bill with another, withdraw cash from an ATM, deposit it into a bank account, pay the bill, and then transfer the funds to a bank or an electronic wallet. While there may be some convenience in using these methods, the risk of accumulating additional debt is increased because they increase the overall amount of your credit card payment.

FAQs.

Is it possible to use a different account to pay the credit card bill?

Yes, you are able to use someone else’s bank account to pay your credit card bill.

Can I use a debit card from a different bank to pay my credit card bill?

Certain banks provide customers with the option to use the debit card of another bank to pay their credit card bill.

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