The use of credit cards has surged significantly due to increased competition among banks and the rise of cashless transactions.
Many credit card users often have multiple bank accounts, and with e-commerce companies offering special promotions on various credit cards, it is common for individuals to own more than one card.
However, there may come a time when you struggle to pay your credit card bill. If you have two credit cards, you might not be aware that you can use one card to pay the bill of another. Let’s explore this further.
It’s important to understand that delaying credit card payments can lead to serious issues. Even being late by just one day can result in significant interest charges from the bank and adversely affect your credit score.
For this reason, financial experts emphasize the importance of paying your bills on time. Even if you find yourself short on cash, there are three methods available for paying one credit card bill using another credit card. Let’s look at these methods:
Digital Wallets: Some digital wallets allow you to load money with a credit card, although they typically charge a fee. For example, in apps like T Wallet, you must first add funds using your credit card. Once the money is loaded into the wallet, you can pay directly or transfer the amount to your bank account to pay your credit card bill.
Balance Transfer: You can transfer the balance from one credit card to another. Again, this process often incurs specific fees that vary by bank. This method allows you to pay off your credit card bill using another card.
ATM Withdrawals: Most credit cards offer an option to withdraw cash up to a specific limit through ATMs. This cash can be used to pay your credit card bill, but be aware that withdrawal fees will apply. You can deposit the withdrawn cash into your savings account to make the payment.
Note: These methods should only be utilized in emergencies. Try to pay your credit card bills using your regular income whenever possible. It is always better to pay your bills with money rather than incur additional charges by relying on credit.