You can pay one credit card with another, but it usually costs money and can damage your credit score

Yes, you can use one credit card to pay the balance on another credit card. The most common way is a balance transfer, where you move debt from one card to another, usually one with a lower interest rate. You can also use a cash advance to withdraw money from one card and pay another card with that cash, though this is expensive. A third option is to use a payment service like PayPal or Venmo that accepts credit cards, then use that money to pay your other card — but this also triggers fees.

The catch is that none of these methods are free, and most will hurt your credit score in the short term. Balance transfers charge a fee (usually 3 to 5 percent of the amount transferred). Cash advances charge both a fee and a higher interest rate than regular purchases. Payment services treat credit card payments as cash advances, which means the same high fees and rates apply. You should only use these methods if the interest you save outweighs the cost of the transfer, or if you are in a genuine emergency and have no other way to pay.

Key Takeaways

  • A balance transfer moves your debt to a new card, usually with a lower interest rate, but costs 3 to 5 percent of the amount transferred upfront.
  • Cash advances let you withdraw money from one card to pay another, but charge a fee plus a much higher interest rate than regular purchases.
  • Using a payment app to pay a credit card with another credit card is treated as a cash advance and carries the same high fees and rates.
  • All three methods lower your credit score temporarily because they increase your credit utilization and create a hard inquiry on your credit report.
  • You should only use these methods if the interest saved is greater than the fees charged, or if you have no other option to avoid late payments.

Balance transfers: the cheapest option if you may have access to

A balance transfer is when you open a new credit card or use an existing one to pay off the balance on another card. The new card issuer pays your old card directly, and you owe the new card instead. Many balance transfer cards offer a 0% introductory rate for 6 to 21 months, which means you pay no interest during that period — only the balance transfer fee upfront.

The fee is typically 3 to 5 percent of the amount you transfer. So if you transfer $5,000, you will pay $150 to $250 in fees. This is still cheaper than paying interest on a high-rate card for months, but only if you pay off the balance before the introductory rate ends. Once that period expires, the regular interest rate kicks in, and it is usually 15 to 25 percent.

Balance transfers require you to have decent credit — usually a score of 670 or higher — because card issuers only offer these deals to borrowers they see as lower risk. If your credit score is lower, you may not be approved, or you may get a higher fee or a shorter 0% period.

Cash advances: expensive and fast, but not a solution

A cash advance lets you withdraw money directly from your credit card at an ATM or bank, then use that cash to pay your other card. This works immediately, but it is one of the most expensive ways to borrow money on a credit card.

Cash advances charge a cash advance fee (usually 3 to 5 percent, with a minimum of $5 to $10) plus a higher interest rate than purchases — often 25 to 30 percent. There is also no grace period: interest starts accruing the day you withdraw the money, not at the end of your billing cycle like it does for purchases. If you withdraw $1,000, you will pay $30 to $50 in fees immediately, plus interest that compounds daily.

Use a cash advance only if you have no other way to avoid a late payment and you can pay the money back within a few days. Otherwise, the cost will quickly spiral.

Payment apps and digital wallets: treated as cash advances

Some people try to use PayPal, Venmo, Square Cash, or Apple Pay to pay one credit card with another. These services do accept credit cards as payment, but most of them treat credit card payments as cash advances, not regular purchases. That means you will be charged a cash advance fee and a higher interest rate, just as if you had withdrawn money from an ATM.

A few payment services (like PayPal's credit card payment option) may not charge a cash advance fee, but they will still charge a transaction fee of 2 to 3 percent. Over time, this adds up to nearly the same cost as a balance transfer, with none of the benefit of a 0% introductory rate.

How paying one card with another affects your credit score

Any method of paying one credit card with another will lower your credit score temporarily. This happens for several reasons. First, credit utilization — the percentage of your available credit you are using — goes up when you transfer a balance or take a cash advance. If you transfer $5,000 to a new card with a $10,000 limit, your utilization on that card is 50 percent, which lowers your score. Second, opening a new card for a balance transfer triggers a hard inquiry, which also lowers your score by a few points.

The good news is that these effects are temporary. Your score will recover as you pay down the balance and the hard inquiry ages off your report (after about 12 months). If you are planning to apply for a mortgage or car loan soon, avoid opening a new card for a balance transfer, because the timing will hurt your score when lenders are checking it.

When paying one card with another makes financial sense

Before you transfer a balance or take a cash advance, do the math. Calculate how much interest you would pay on your current card over the time period you need, then compare it to the fee you would pay to transfer or advance the money. If the fee is lower than the interest, the transfer makes sense.

For example: You owe $5,000 on a card with 24 percent interest. You can transfer it to a card with 0 percent for 12 months. The transfer fee is $250 (5 percent). If you pay off the balance in 12 months, you save roughly $600 in interest and only pay $250 in fees — a net savings of $350. That is worth doing. But if you only pay $200 per month, you will not pay off the balance in 12 months, and the regular interest rate will kick in. Then the transfer may not have been worth it.

Never transfer a balance just to move debt around or to free up credit on one card. You are not reducing what you owe; you are just moving it and paying a fee to do so.

Alternatives to paying one card with another

Before you transfer a balance or take a cash advance, explore other options. If you are behind on payments, contact your card issuer and ask about a hardship program. Many issuers will lower your interest rate, waive fees, or set up a payment plan if you explain your situation. This costs nothing and does not require opening a new card.

If you have high-interest debt across multiple cards, a personal loan from a bank or credit union may have a lower interest rate than any credit card. Personal loans also have a fixed payment schedule, which makes it easier to budget. If you own a home, a home equity line of credit (HELOC) or home equity loan may offer an even lower rate, though this puts your home at risk if you cannot pay.

If you are struggling with debt, a nonprofit credit counselor can help you understand your options without charging you. The National Foundation for Credit Counseling (NFCC) and the Financial Counseling Association (FCA) both offer free or low-cost counseling.

Frequently Asked Questions

Will paying one credit card with another hurt my credit score?

Yes, temporarily. Opening a new card for a balance transfer triggers a hard inquiry and increases your credit utilization, both of which lower your score by 5 to 10 points. The effect fades as you pay down the balance and the inquiry ages. Avoid this if you are applying for a mortgage or car loan in the next few months.

Can I transfer a balance to a card from the same bank?

Usually not. Most banks do not allow you to transfer a balance between their own cards. You will need to open a card with a different issuer. Check the card's terms before you apply to confirm whether balance transfers from your current bank are allowed.

What happens if I do not pay off the balance transfer before the 0% period ends?

The regular interest rate kicks in on any remaining balance. This is usually 15 to 25 percent. You will owe interest on the full remaining balance from that day forward, not just on new purchases. Set a reminder to pay off the balance before the promotional period ends.

Is there a limit to how much I can transfer?

Yes. Most cards limit balance transfers to your available credit limit minus any fees. So if your new card has a $10,000 limit and a 5 percent transfer fee, you can transfer up to about $9,500 (the fee is deducted from your available credit). Check your card's terms for the exact limit.

Can I use a balance transfer to pay off medical debt or other non-credit-card debt?

No. Balance transfers only work between credit cards. To pay off medical debt, personal loans, or other debts, you would need to take a cash advance or use a personal loan. A personal loan is usually cheaper than a cash advance.