Can You Use One Credit Card To Pay Off Another?

Paying off credit card debt is a common financial goal for many people. With high interest rates, carrying a balance on your cards can quickly become very expensive. This leads some people to wonder if they can use one credit card to pay off another as a strategy to save money.

The quick answer is yes, you generally can use one credit card to pay off another. This balance transfer strategy comes with some caveats, but when done properly, it can help you pay off debt faster and reduce the total interest paid.

The Benefits of Balance Transfers

Lower Interest Rates

One of the key benefits of using a balance transfer is the opportunity to enjoy lower interest rates. Many credit card companies offer promotional rates as low as 0% for a certain period of time, typically between 6 to 18 months.

This can provide significant savings on interest charges, allowing you to pay off your debt faster and more efficiently.

By transferring your balance to a card with a lower interest rate, you can potentially save hundreds or even thousands of dollars in interest payments over the course of the promotional period. This can make a big difference in your overall financial situation and help you get closer to becoming debt-free.

Consolidate Multiple Cards

Another advantage of using a balance transfer is the ability to consolidate multiple credit cards into one. If you have several credit cards with outstanding balances, it can be overwhelming to keep track of multiple due dates and payment amounts.

By transferring the balances to a single card, you simplify your financial management and have a clearer picture of your debt.

Consolidating multiple cards also allows you to streamline your monthly payments. Instead of juggling different due dates and minimum payment amounts, you only need to make one payment each month. This can help you stay organized and reduce the risk of missing payments, which can negatively impact your credit score.

Fixed Introductory Rates

When you transfer a balance to a new credit card, you often have the advantage of fixed introductory rates. This means that the interest rate on the transferred balance will remain unchanged for the duration of the promotional period, regardless of any fluctuations in the market or changes in the credit card company’s policies.

Having a fixed introductory rate gives you peace of mind, as you can plan your payments without worrying about unexpected interest rate hikes. This allows you to create a clear repayment strategy and budget accordingly.

It’s important to note that after the promotional period ends, the interest rate may increase, so it’s crucial to read the terms and conditions of the credit card offer carefully.

Risks and Drawbacks to Be Aware Of

Balance Transfer Fees

One of the main risks associated with using one credit card to pay off another is the balance transfer fee. Most credit card companies charge a fee for transferring a balance from one card to another. This fee is usually a percentage of the amount being transferred and can range from 3% to 5%.

For example, if you are transferring a balance of $5,000, you could end up paying a fee of $150 to $250. It’s important to consider this fee when deciding whether or not to use this strategy.

Deferred Interest

Another drawback to be aware of when using one credit card to pay off another is the potential for deferred interest. Some credit card companies offer promotional balance transfer rates that are lower than the regular interest rate.

However, if the balance is not paid off in full by the end of the promotional period, the remaining balance may be subject to retroactive interest charges. This means that you could end up owing interest on the entire transferred balance, not just the remaining amount.

It’s crucial to understand the terms and conditions of the promotional offer before proceeding with a balance transfer.

Impact on Credit Score

Using one credit card to pay off another can also have an impact on your credit score. When you open a new credit card to transfer a balance, it can temporarily lower your average account age and increase your overall credit utilization ratio.

Both of these factors can have a negative impact on your credit score. Additionally, if you close the original credit card after transferring the balance, it can further reduce your available credit and negatively impact your credit utilization ratio.

It’s important to consider these potential consequences before deciding to use this strategy.

Accruing New Debt

One of the biggest risks of using one credit card to pay off another is the temptation to accrue new debt. If you transfer a balance to a new credit card with a zero or low-interest promotional period, it can be tempting to continue using the original credit card for new purchases.

This can lead to a cycle of debt where you’re constantly transferring balances and accruing new debt. It’s essential to have a plan in place to avoid falling into this trap and to focus on paying off your existing debt rather than accumulating more.

It’s crucial to carefully weigh the risks and drawbacks before deciding to use one credit card to pay off another. Be sure to read the terms and conditions of any balance transfer offer and consider the impact on your credit score and overall financial situation.

It may be beneficial to consult with a financial advisor or credit counselor to determine the best strategy for managing your debt.

Tips for Successfully Transferring a Balance

Transferring a balance from one credit card to another can be a smart financial move, as it can help you consolidate your debt and potentially save money on interest payments. However, it’s important to approach balance transfers with caution and a clear strategy.

Here are some tips to help you successfully navigate the process:

Compare Balance Transfer Offers

Before you decide on a balance transfer, it’s crucial to compare offers from different credit card issuers. Look for cards that offer low or zero introductory APRs (Annual Percentage Rates) on balance transfers.

This will give you a certain period of time to pay off your transferred balance without accruing any interest. Websites like or can provide you with a comprehensive list of balance transfer offers available in the market.

Watch Out for Introductory Rates

While introductory APRs can be enticing, it’s important to read the fine print. Many balance transfer offers come with a limited time frame for the introductory rate. After this period, the APR may increase significantly.

Make sure you understand the terms and conditions of the offer, particularly the duration of the introductory rate and any potential fees associated with the transfer.

Make Payments on Time

Timely payments are essential when it comes to successfully transferring a balance. Late payments can result in penalties, fees, and even the cancellation of your introductory rate. Set up reminders or automatic payments to ensure you don’t miss any due dates.

This will help you avoid unnecessary charges and maintain a positive credit history.

Don’t Accrue More Debt

One of the primary goals of transferring a balance is to reduce your overall debt. It’s important to resist the temptation to accumulate more debt on the credit card you just paid off. By continuing to spend beyond your means, you may find yourself in a worse financial situation.

Instead, focus on creating a budget and sticking to it to avoid further debt accumulation.

Have a Payoff Strategy

Transferring a balance is just one part of the equation. To successfully pay off the transferred balance, it’s crucial to have a payoff strategy in place. Determine how much you can afford to pay each month and create a timeline for paying off the debt.

Consider using online tools or apps to help you track your progress and stay motivated.

Remember, successfully transferring a balance requires careful planning, discipline, and financial responsibility. By following these tips, you can effectively use one credit card to pay off another and take control of your debt.

Alternatives to Balance Transfers

If you find yourself struggling to pay off credit card debt, you may be wondering if using one credit card to pay off another is a viable option. While this may seem like a quick fix, it’s important to explore alternative methods that can help you manage your debt more effectively in the long run.

Here are some alternatives to balance transfers that you may want to consider:

Debt Consolidation Loans

A debt consolidation loan is a type of personal loan that allows you to combine multiple debts into one. With a debt consolidation loan, you can pay off your credit card debt and other high-interest loans, and then make a single monthly payment towards the loan.

This can help simplify your finances and potentially lower your interest rate, saving you money in the long term.

When considering a debt consolidation loan, it’s important to shop around and compare interest rates and terms. You can use online comparison websites or consult with a financial advisor to find the best loan option for your specific situation.

Remember that taking out a loan to pay off debt is not a solution in itself – it’s important to address the underlying spending habits and create a budget to avoid falling back into debt.

Debt Management Plans

A debt management plan (DMP) is a program offered by credit counseling agencies to help individuals pay off their debts. Through a DMP, you can work with a credit counselor who will negotiate with your creditors to lower your interest rates and create a repayment plan that fits your budget.

Once enrolled in a DMP, you will make a single monthly payment to the credit counseling agency, and they will distribute the funds to your creditors on your behalf. This can help simplify your debt payments and potentially save you money on interest charges.

It’s important to note that a DMP may have an impact on your credit score, as it involves closing or freezing your credit card accounts. However, if you’re struggling to make your monthly payments and need help managing your debts, a DMP can be a helpful option to consider.

Personal Loans

A personal loan is another option to consider when looking to pay off credit card debt. With a personal loan, you can borrow a fixed amount of money and use it to pay off your credit card balances. Personal loans often have lower interest rates compared to credit cards, which can help you save money on interest charges.

When considering a personal loan, it’s important to compare interest rates, terms, and fees. You can use online comparison websites or consult with a financial institution to find the best loan option for your needs.

Keep in mind that taking out a personal loan requires a good credit score and a stable income to qualify.

Before deciding on any of these alternatives, it’s important to carefully assess your financial situation and consider the pros and cons of each option. It may also be helpful to seek advice from a financial professional who can provide personalized guidance based on your specific circumstances.


Using a balance transfer credit card can be an effective strategy to pay off credit card debt faster and at a lower cost. However, balance transfers come with risks like fees, timing requirements, and the potential to accrue new debt.

By researching offers thoroughly, avoiding deferred interest pitfalls, making payments on time, and not charging more to your cards, you can successfully use balance transfers to eliminate high interest credit card balances.

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