With various offers available on different banks offering credit cards, most people have more than one credit card. The flood of sales, impulsive purchases, and unforeseen needs can lead to overspending. Credit card companies usually give a timeline of 45 days to pay the bill without any interest. However, if one fails to pay their credit card bill on the due date, they might incur a charge or a fee.
In a situation where an individual is short on funds to pay their credit card bill but doesn’t want to pay for the exorbitant interest amount charged on their credit card usage, they can pay via an additional credit card. Here’s how one can do it.
Tips On How To Pay Your Credit Card Bills
While there’s no guaranteed way of lowering your credit card bill, taking some steps such as paying more than the minimum amount due and enabling auto payment can help:
Try Paying More Than The Minimum Amount Due
By paying a little more than the credit card minimum amount due one can drastically reduce the interest, additionally, this can make the repayment quick.
Enable Auto Payment
Enabling auto payment ensures that an individual never misses a deadline for their payment, saving them from late fees or penalties.
Track Grace Periods
By being wary of grace periods an individual can ensure that they know when a billing cycle will end before the due date of payment.
Advantages Of Paying Credit Card Bill Using Another Credit Card
There are several advantages of using a credit card to pay off the credit card bill of another card you have:
Scope Of Rewards: If the secondary credit card has great ongoing offers, one can always take advantage of them by paying the first credit card bill, and earning cashback or points, which are redeemable.
Avoid Late Fees: Making the payment using a different credit can help an individual avoid late fees. However, the payment must be made on time.
Debt Management: One can reduce their overall debt by shifting the outstanding balance from a high-interest card to a credit card with lower interest rates.
Maintain Cibil Score: Credit card holders can increase their credit score by making timely payments towards a credit card bill, and avoiding missing the payment.
How To Make Payment of One Credit Card Using Another?
It is crucial to understand that credit card bills can not be normally paid using another credit card like a bank transfer or UPI payment. However, there are various alternative ways to make the payment indirectly.
1) Balance transfer
One can transfer balance from one credit card to another with a lower interest rate. This can be useful for someone who wishes to save on the interest amount paid on a credit card bill.
However such transfers often come with a charge, usually between 1 and 3 per cent of the balance amount.
2) Cash advances
One can withdraw cash from a credit card and utilise that amount to pay the other credit card amount. This also comes with a processing fee and in some cases an interest rate.
3) Third-party payment gateways
An individual can pay their credit card bill by using third-party payment services. However, they must read the terms and conditions of the platforms to look out for any hidden charges.
Factors To Consider
Interest And Charges: In case one fails to repay the balance transfer amount and cash advances, they will end up paying higher interest rates and late fees.
Impact on Credit Score: Balance transfer can increase the credit utilisation ratio, eventually affecting their credit score negatively.
