Paying with credit card online
No, you cannot pay direct monthly payments with a credit card. Credit card companies only allow you to put in bank account information as the only payment method.
This means you have two options either pay off that balance with a cash advance or a balance transfer.
Transferring a Balance
One of the ways to pay off a credit card with another credit card is by doing a balance transfer. You can save money by doing a balance transfer because it allows you to move a balance from one credit card to another credit card. This can be beneficial when you want to move a balance to a credit card that has a low-interest rate.
One of the downsides is that balance transfers are not free. When doing this you can expect to pay a transfer fee that can range between 3% to 5% of the amount transferred. Also, to top it off balance transfer can take time. It can take up to two weeks for the balance transfer to go through. But the potential to save money should outweigh the negatives.
How do Balance Transfers Work?
Apply for a card
Step one should be looking for a card that offers good balance transfer rewards. Typically some cards can have an introductory rate of 0% APR for balance transfers for the first year. To qualify for the best rates, you should make sure to have a good or excellent credit score. One thing to keep in mind is that you may not be allowed to transfer balances between the same issuer. Meaning that you can't transfer one balance from one Wells Fargo Credit Card to another Wells Fargo Credit Card.
Initiate The Balance Transfer
Step two should be initiating the balance transfer. This can be done on the phone or online. You will need three pieces of information:
- Issuer Name
- Amount of debt
- Account Information
On some occasions, you can initiate a balance transfer using a convenience check. But before using one make sure to read the terms and conditions to find out if it will count as a balance transfer and what interest rate you will be getting.
Wait For The Transfer to go Through
The next step should be waiting for the balance transfer to go through. Typically this can take anywhere between two to four weeks. In the end, you should get the balance you once owed in the older credit card transferred to the new one with the added transfer fee.
Pay Down The Balance
Once the balance is transferred to the new card you will be responsible for making the monthly payments.
Direct Monthly Payment
Paying a monthly bill with another credit card is not possible. Because credit card companies only allow you to put in bank account information rather than credit card information. Meaning that, don't expect to be gaming the system anytime soon.
These restrictions are in place to protect the credit card lender. A customer who constantly pays a credit card balance with another credit card is likely to default on payments in the long run.
Paying Credit Card Balance With A Cash Advance
Yes, it's possible to pay a monthly payment with a cash advance. In theory, you could go to your bank and take out 100 dollars from your credit card and use that money to pay off your monthly balance.
This is a bad idea because of the fees and high-interest rate that comes with it. Meaning that it's not worth using a cash advance to pay off your credit card balance.
Conclusion
The best option to pay off an unwanted credit card balance is by transferring your balance to another credit card. Other available alternatives are too costly and cause you to pay unnecessary fees and interest rates.