Managing credit card debt can be a challenging task. If you have multiple cards, you have to keep up with different due dates and amounts. In this scenario, you may consider a credit card to credit card payment to pay off a bill. Whether you’re looking to consolidate debt or manage cash flow, make informed decisions to better manage your credit card payments.
Best Practices for Credit Card Payments
While using and maintaining your credit cards, consider the following safe practices:
Spending
Keep your repayment capacity in mind and avoid binge-swiping
Full and Timely Payments
Pay your bills in full on or before the due date to avoid finance charges
Auto-payments
Ask your bank to set up automatic payments towards the total and not just the minimum due in credit card statements
Balance Transfer
Be on the lookout for credit cards with lower interest rates that allow credit card balance transfers
Credit Limit
Be conscious to use only up to 30-40% of your limit to increase your credit score and to be more mindful of your spending
Messages and App Alerts
Enable SMS alerts to track card usage and payment deadlines and use the mobile app linked to your credit card to get timely notifications
How to Pay a Credit Card Bill with Another Credit Card
Knowing about the different methods available and their potential costs can help you decide on the best approach. You can use a digital wallet or take a loan against your credit limit to use one card to pay another’s bill. However, the two common methods of using one credit card to pay off another credit card’s dues are:
Balance Transfer
You can transfer your outstanding dues from one credit card to another. Based on the card you use for this purpose, you may get lower interest rates or promotional offers. You can initiate this process through the following ways:
- Through the credit card account online
- By contacting customer service
- By utilising the SMS banking feature
Ensure that you understand the promotional rates, terms and conditions to avoid any extra charges.
Cash Advance
Your credit card may also offer the cash advance feature. Using it, you can withdraw cash from ATMs. You can then use this cash to clear your other credit card’s dues. Go to the issuer’s physical branch and submit the cash amount. This option may be accompanied by high interest rates and fees, so do your due diligence.
Advantages of Using Another Credit Card to Pay Your Credit Card Bill
Paying a bill with a credit card to credit card payment can be a useful strategy in certain situations.
Avoid Late Fees
It can help you make timely payments, which can help you avoid late fees
Avoid Interest Dues
If the card that you transfer the balance to comes with a lower interest rate, you can avoid accumulating high interest on the overdue balance of the first card
Earn Rewards
You could earn reward points and cashback by transacting with your credit card to pay off another
Manage Debt
This method can help you consolidate your debts from multiple credit cards, and you could secure lower interest rates to manage your finances better
Faster Payments
It is a quick way to settle credit card dues
Digital Convenience
With credit card to credit card payment, you could avoid the hassle of paying in cash or cheques
Temporary Liquidity
This method can help you cover the payments due while fulfilling any financial requirements you may have
Fees and Charges to Consider with Credit Card Payments
With the use of any credit card, you may be subject to various fees and charges. Some of the more common ones are:
- Balance transfer fees
- Annual fees
- Late fees
- Returned payment fees
- Interest/finance charges
- Foreign transaction fees
- Card replacement fees
- Cash advance fees
- Over-limit fees
Limitations to Consider
If you are looking to clear your credit card’s dues with another credit card, consider the following restrictions:
- You cannot use two cards from the same issuer for balance transfer payments
- These payments are usually subject to transaction fees ranging from 2% to 4% of the total amount that you transfer
- To avoid debt swapping, these payments are typically limited to 30% to 50% of the total card limit, so you may be able to use them based on what your total dues and credit limit are
- You cannot use the other card’s full balance or enjoy an interest-free period
- Your credit score may take a hit due to higher utilisation of credit
- If you are unable to pay off the other card’s bill, you may face hefty interest after a certain period
Efficiently managing credit card payments starts with the right tools. That’s where the One Credit Card App gives you an advantage. Linked to both the physical and virtual variants of this credit card, the app helps you set spending limits on different types of purchases. This ensures you do not go over your budget. What’s more, its GPS allows you to check offers near you, so you never miss out on a good deal!
The stylish metal One Credit Card is also a lifetime-free card and gives you access to discounts across food delivery, shopping and travel. To explore its benefits, apply now!