Direct payment from one credit card to another is not possible
You cannot use one credit card to pay the balance on another credit card directly. Credit card companies do not accept credit card payments — they accept bank transfers, checks, money orders, and debit card payments. If you try to pay with a credit card number, the payment will be declined.
What you can do instead is use a balance transfer, which moves your debt from one card to another, or take a cash advance from one card and use that money to pay the other. Both of these carry costs and consequences that matter before you choose one.
Key Takeaways
- A balance transfer moves your debt to a new card, often with a lower interest rate for a set period, but charges a transfer fee of 3 to 5 percent of the amount moved.
- A cash advance lets you withdraw money from one card's credit line to pay another card, but charges a cash advance fee plus a higher interest rate that starts when ready with no grace period.
- Balance transfers work best if you can pay off the transferred balance before the promotional rate ends, usually 6 to 21 months depending on the card.
- Both options report to credit bureaus and may lower your credit score temporarily because they increase your overall debt or reduce available credit.
- Paying down debt with money from your bank account or a personal loan avoids fees and interest stacking, and should be your first choice if it is possible.
How a balance transfer works and what it costs
A balance transfer moves the balance from one credit card to another card, usually one with a lower interest rate. You contact the new card issuer (or explore for a new card that offers balance transfers), provide the account number of the card you want to pay off, and the issuer pays that card on your behalf. The balance now appears on the new card instead.
Most balance transfer offers include a promotional period — typically 6 to 21 months — during which the interest rate is 0 percent or very low. After that period ends, the regular interest rate kicks in. The catch is the balance transfer fee, which is usually 3 to 5 percent of the amount transferred. If you transfer $5,000, you will pay $150 to $250 just to move the debt. That fee is added to your new balance.
A balance transfer makes sense only if the total interest you save during the promotional period is more than the fee you pay upfront. If you transfer $5,000 at a 3 percent fee ($150) to a card with 0 percent for 12 months, and your old card charged 20 percent interest, you save roughly $1,000 in interest — so the transfer pays for itself. If you only transfer $1,000, the math works differently and may not be worth it.
How a cash advance works and why it is usually more expensive
A cash advance lets you borrow money against your credit card's credit line and withdraw it as cash. You can then use that cash to pay your other credit card. You do this at an ATM, a bank branch, or by requesting a check from your card issuer.
Cash advances are expensive. You pay a cash advance fee upfront — usually 3 to 5 percent of the amount, sometimes a flat fee like $10. Unlike purchases, there is no grace period: interest starts accruing the day you withdraw the money, and the interest rate is higher than your purchase rate, often 20 to 30 percent. If you take a $5,000 cash advance at a 4 percent fee plus 25 percent interest, you owe $200 when ready plus $104 in interest after one month if you do not pay it down.
Cash advances should be your last resort. They are cheaper than missing a payment or going into collections, but they are more expensive than a balance transfer, a personal loan, or paying from your bank account. Use a cash advance only if you have no other way to make a payment and need to avoid default.
When a balance transfer makes sense
A balance transfer is worth considering if you meet three conditions: you have a plan to pay off the transferred balance before the promotional rate ends, you can may have access to for a card with a low or 0 percent promotional rate, and the interest you will save is more than the transfer fee.
The math works best when you are moving a large balance from a high-interest card to a 0 percent card for a long promotional period. If you owe $8,000 on a card charging 22 percent and you transfer it to a card offering 0 percent for 18 months with a 3 percent fee, you pay $240 upfront but save roughly $2,640 in interest over those 18 months — a net savings of $2,400. That is worth doing.
The math works poorly when you are moving a small balance, the promotional period is short, or you are not confident you can pay it off in time. If you transfer $2,000 and the promotional rate expires in 6 months, you need to pay roughly $333 per month to clear it before interest kicks in. If you cannot commit to that, the balance transfer just delays the problem.
How a balance transfer affects your credit score
A balance transfer will likely lower your credit score temporarily, usually by 5 to 15 points. This happens for two reasons: the credit inquiry when you explore for the new card, and the change in your credit utilization ratio. If you transfer a $5,000 balance to a new card, you now have $5,000 of debt on that new card. If the card has a $10,000 limit, your utilization on that card is 50 percent. Your overall utilization across all cards may also increase if you keep the old card open.
Your score will recover as you pay down the transferred balance and as the inquiry ages. Most people see their score return to normal within 3 to 6 months if they make on-time payments. Do not open multiple balance transfer cards at once, because each process creates an inquiry and each new card lowers your score further.
Alternatives to balance transfers and cash advances
Before you move debt from one card to another, consider whether you can pay it down with money you already have. If you have savings, a tax refund, a bonus, or money from selling something, using that money to pay down the balance avoids all fees and interest. This is the cheapest option.
A personal loan from a bank, credit union, or online lender is another option. Personal loans typically charge 6 to 36 percent interest depending on your credit score and the lender, and they have fixed terms — you know exactly when the loan will be paid off. If your credit score qualifies you for a personal loan at 12 percent interest, and your credit card charges 22 percent, a personal loan saves you money without the time pressure of a promotional rate expiring. Personal loans also do not carry the same utilization penalty as credit cards.
If you are struggling with multiple high-interest debts, a debt management plan through a nonprofit credit counselor may help. These organizations work with your creditors to lower your interest rates and set up a single monthly payment. This is different from debt settlement or bankruptcy and does not require taking on new debt.
What happens if you cannot pay off the transferred balance in time
If the promotional period ends and you still have a balance, the regular interest rate applies to whatever remains. If you transferred $5,000 at 0 percent for 12 months and still owe $3,000 when the 12 months end, that $3,000 will now be charged the card's regular rate, which might be 18 to 25 percent. You will owe interest on $3,000 going forward.
Some cards offer a longer promotional period specifically to give you more time. Before you transfer, check how long the 0 percent period lasts and calculate whether you can realistically pay off the balance in that time. If you cannot, a balance transfer may not be the right move — you might be better off with a personal loan or a debt management plan instead.
Frequently Asked Questions
Can I transfer a balance from one card to the same card?
No. You cannot transfer a balance from a card to itself. You must transfer to a different card, either one you already own or a new card you open. Some issuers offer promotional rates on balance transfers within their own family of cards — for example, transferring from one Chase card to another Chase card — but it still counts as a transfer to a different account.
Will a balance transfer hurt my credit score?
Yes, temporarily. The credit inquiry and the new account will lower your score by a few points initially. Your score will recover as you pay down the balance and make on-time payments. The temporary dip is usually worth it if the balance transfer saves you hundreds in interest, but it is not worth it for a small transfer that saves you very little.
What if I do not have a bank account to pay the new card from?
You can pay a credit card with a debit card, a money order, or a check. You cannot pay with another credit card. If you do not have access to any of these payment methods, contact your card issuer to ask what options are available. Some issuers offer payment plans or hardship programs if you are unable to pay.
Is a balance transfer the same as a cash advance?
No. A balance transfer moves your debt to a new card and usually includes a promotional low or 0 percent rate. A cash advance withdraws cash from your credit line and charges a higher interest rate with no grace period. Balance transfers are cheaper if you may have access to for one, but cash advances are faster if you need money when ready.
Can I do a balance transfer if I have bad credit?
Most 0 percent balance transfer offers require good to excellent credit, usually a score of 670 or higher. If your score is lower, you may still find cards that accept balance transfers, but the promotional rate will be higher or shorter, or the transfer fee will be higher. Check what you may have access to for before explore, because each process creates an inquiry that lowers your score further.