Can I Use a Credit Card to Pay Another Credit Card

Have you lot found yourself in credit card debt? Are yous paying involvement every month? Does it feel impossible to brand a paring in your credit card balances because you lot're paying and then much interest?

A balance transfer is a way to motion credit card debt from one credit card to another with the goal of saving money on interest.

Leap to our top balance transfer carte picks Best Balance Transfer Credit Cards

When you lot're paying involvement on a credit menu, transferring debt to a menu with a lower interest charge per unit can help you reduce the amount of involvement you're charged equally you pay information technology off.

Think of a balance transfer as a way to pay off your credit cards with another credit bill of fare.

Some residual transfer credit cards come with a 0% APR for a limited time. This means you can temporarily interruption interest while you pay off your credit card debt.

Recall, you can avoid credit card interest on most cards by paying your rest on time and in full every month. Merely if you lot're already in debt and have a program to pay it off, a balance transfer may be i way you lot tin can strategically reduce the corporeality of interest you pay.

Keep in mind that a balance transfer is not magic. You will withal owe the debt. If you don't pay your debt back in a timely fashion, you could however cease up paying lots of extra money in the grade of involvement.

Go along reading to learn more nearly:

How balance transfers piece of work
Deciding whether a residuum transfer is a good idea
How balance transfers impact your credit
How to actually do a balance transfer
Our favorite credit cards with balance transfer offers

What Is a Credit Card Balance Transfer?

You might have heard the term "balance transfer credit card," but a more accurate clarification is "credit menu offer favorable to balance transfers."

Pretty much whatever credit card will allow yous transfer a balance abroad from it. Many credit cards volition let you transfer a remainder to them too.

Some credit cards, however, have terms that are more favorable for incoming residuum transfers. These may include:

Lower fees on incoming balance transfers
Lower regular interest charge per unit on residual transfers
Limited-time low introductory APRs on residual transfers

Read more 2021 Survey: 78% Think Residuum Transfers Are Effective for Debt Payoff or Reducing Interest

Fees for Residue Transfers

Balance transfers usually aren't free.

Even those credit cards offering an introductory zero percentage involvement rate mostly come with a cost in the form of a balance transfer fee, which will typically be charged as a pct with a predetermined minimum.

Nigh credit card issuers charge between 2% and five% of the residue as the fee for the transfer, with a minimum fee of nearly $5. Some carte du jour issuers waive this fee if the residual transfer is made inside a certain number of days of opening a new account.

It'southward also worth noting that balance transfer fees usually evidence up separately from the transferred corporeality on the statement of the card you lot transferred the remainder to.

2021's All-time Credit Cards With No Balance Transfer Fees and 0% APR

Cheque 'em out!

Introductory April Periods

Many residuum-transfer-friendly cards feature an introductory period with a lower APR on new balance transfers.

Banks often use these offers to attract new customers. This is why you tin can't, for example, transfer a residue from ane Citi credit card to another Citi card — the bank isn't getting a new customer or taking on any new (potentially very profitable) debt.

The introductory APRs on these residue transfer offers are often 0% for 12, 18, or 24 months. While a 0% APR tin be very helpful for avoiding interest, they can also open the door to more credit card debt. We think it's important that you have a programme for how y'all'll pay off all (or at least well-nigh) of the debt during the introductory period. Information technology's typically non wise to transfer a balance to purchase some time without a solid programme in place.

Some people (hopefully not you!) will go through this unfortunate scenario:

You open up a credit bill of fare with a 0% APR residuum transfer offering.
You transfer debt to that card and then merely pay the minimum payments every month.
You go along to rack up more credit card debt on the original bill of fare the balance was transferred away from.
Your 0% introductory period runs out. At present you're stuck paying high interest on two cards. You're deeper in credit card debt and y'all don't have the opportunity to transfer either residuum to another card.

The scenario above is a smashing style to dig yourself into a deep fiscal pigsty and become cached in debt. Besides, increasing your credit card debt later you lot transfer a balance to a new card might severely damage your credit. Higher credit carte du jour balances could increase your credit utilization rate — a major factor in credit scores.

If something prevents you from paying off a transferred balance before your interest rate increases, it may be wise to showtime looking for another residue transfer opportunity. Another transfer could aid you avoid a steep increase in the April. Still be aware that continually transferring balances from one card to some other will keep you in credit carte du jour debt. This design can limit your financial freedom and get in harder to reach or maintain skillful credit scores.

What Types of Balances Can I Transfer?

Credit cards can be used for residuum transfers from many different kinds of accounts. Other credit cards are the virtually obvious selection, but auto loans, pupil loans, personal loans, and other installment loans can be eligible every bit well.

You won't be able to transfer a residual betwixt cards from the same card issuer. So you can't transfer a balance from one Hunt card to another, for instance, or 1 Depository financial institution of America card to some other. Credit carte du jour issuers don't want you to take advantage of them past just transferring a remainder back and along between their cards.

Other than that, about credit card companies will allow you to transfer a balance from practically whatever account that requires a monthly payment.

Y'all tin can even acquit a bank residue transfer, where you request a residual transfer with a credit card, only instead of paying off another card's balance, the funds become to your bank account. And so, the amount of coin that went to your bank business relationship has to be paid off as usual. This could be helpful if you need greenbacks in a pinch.

But when it comes to installment loans, it's not necessarily a good idea to transfer the balance to a credit card merely because you tin can.

Installment loans don't hurt your credit much compared to revolving credit card debt. Fifty-fifty if you take a very big installment loan, it's better than owing the debt on a credit menu. Installment loans often feature lower interest rates than credit cards anyway. So, if yous accept an affordable interest rate, it may be all-time to go out your installment account parked with the same bank and pay it off equally apace as you can.

Of course, at that place are a few scenarios where it might be a good idea to transfer an installment loan to a credit card with a 0% April. This could exist true if your installment loan is very pocket-size, or has a very high April. In these instances, you might save some money by transferring the debt to a low-remainder credit card. Yous'll have to do some math to effigy out the total amount you'll finish up paying in each instance. Besides, be prepared to have a potential hit to your credit scores if y'all transfer installment debt to a revolving account.

Balance transfers sometimes come with certain terms and limitations. American Express, for example, requires the account from which the debt is coming to exist in your name. Be sure to cheque the terms that come with your carte to learn exactly what you can do, and contact your card issuer if you have any questions.

How Long Volition a Residue Transfer Take?

Rest transfers are never instant. In some cases, transferring a balance takes only a few days, while in others you could take to wait much longer.

You tin can more often than not await a rest transfer to take two to three weeks at well-nigh when you lot're dealing with major issuers.

Here'due south an thought of what you can expect from seven big-league issuers, as a dominion of thumb.

American Limited: v–seven days
Bank of America: Upwardly to 5 days for existing accounts and 14 days for new accounts
Capital One: 3–14 days, depending on whether you requested the transfer online or past mail
Chase: Commonly within 7 days, though information technology may take up to 21 days
Citi: 2–21 days; depends on whether you lot're transferring to a new or existing business relationship, and which companies are involved
Find: Up to 7 days for existing accounts and 14 days for new accounts
U.Due south. Bank: Up to 14 days

Go along in mind that these times may vary significantly depending on the situation. Contact your issuer directly if yous'd similar to hash out its policies or the status of your own transfer (you may as well exist able to cheque the status of your transfer online).

Should I Transfer My Balance?

Getting a card with a zero-interest introductory rate, especially if that teaser charge per unit is skillful for 21 months, as some are, can salvage hundreds of dollars in interest and assistance yous pay off your balance much sooner. Equally long as you're not seen every bit risky by creditors, there may be some good balance transfer offers available to y'all.

Hither are some signs a remainder transfer might exist a good fit for you lot:

You have a better paying job later on a menstruum of unemployment or underemployment and you lot're ready to lower your debt.
Y'all've committed to cease overspending and you're ready to create a plan to pay off your debt.
Your credit rating is skilful to fantabulous and you think you may be able to qualify for a new card with an attractive balance transfer offer.

Unfortunately, if y'all have poor credit scores or yous're going through a catamenia of financial distress, you lot may not be able to authorize for a new credit card with favorable balance transfer terms. If this describes you, you may demand to consider other options similar credit counseling or perhaps fifty-fifty bankruptcy.

It'southward up to you to decide whether a rest transfer offer is wise in your situation. Like many tools in your financial toolbox, this one is precipitous. Develop a strategy for using information technology to become what you want and wield it with a healthy supply of discipline.

Even if you can qualify for a balance transfer offering, consider your plan for paying downwardly the debt before y'all use. You may put your financial future at risk if you transfer a balance to defer involvement and hope your situation will better without a solid programme to pay off your debt.

If you're considering transferring a residuum away from an installment loan, recollect carefully. Paying off installment debt with a credit card may not exist wise, particularly if the loan amount is large. In nearly cases you'll be better off to exit installment loans alone, as long equally the Apr isn't besides high.

Examples: Ii Simple Balance Transfer Scenarios

Here are ii simple examples that show how a balance transfer might relieve you lot money.

Imagine you owe $1,000 on a credit menu with a 20% Apr. Unfortunately, you're simply able to pay $30/month toward the debt.

If you pay only $thirty every calendar month and don't spend any more on the card, it would take over 4 years to pay off the entire remainder. In that fourth dimension, y'all'd also be spending over $470 in involvement on what was originally a $ane,000 rest! When you simply pay the minimum required on a menu, almost of what you're paying is interest. Paying the minimum payment tin make information technology feel incommunicable to make a paring in your debt.

Learn more about how paying a credit card and minimum payments piece of work here.

Card With 0% Intro APR on Balance Transfers

Edifice on the example above, permit's say y'all employ for a new credit carte that offers a 0% intro APR for eighteen months on balance transfers. Yous're canonical with a $two,000 credit limit.

You transfer your entire residue from the first card to the new bill of fare and notwithstanding have $1,000 worth of available credit on the new account. This item card'southward terms feature no fee on balance transfers made within the start threescore days after a new account is opened. You lot take advantage of the offer and are charged $0 in residue transfer fees. The card has an introductory 0% Apr catamenia on balance transfers for 18 months. Afterward, a regular APR of twenty% takes consequence — the same regular APR charged on your previous card.

If you keep to pay $30 each month after transferring the balance, your payments will go much further. For the first xviii months, the entire $thirty you lot pay each calendar month is applied to your main (the $ane,000 you borrowed) instead of beingness applied toward involvement. In calendar month 19, when your regular interest rate kicks in, you'll owe $437.67. If yous continued paying $xxx per calendar month at that point, it would take an boosted xviii months to pay off the remaining residual, because you'd be paying interest on the remaining balance every bit yous pay it downwardly. The total involvement you lot would pay in the remaining eighteen months after the 0% introductory April would be $75.65.

In this example, fifty-fifty though the two cards take the same regular Apr, y'all would save money and get out of debt faster. Because of the introductory 0% Apr, you'd pay off the original $i,000 debt over one year sooner than the original scenario. You'd as well relieve nigh $400 in involvement.

Bill of fare With 8% APR on Balance Transfers, But No Intro Apr

Let's imagine a 2nd scenario. Yous're canonical for a card with a $2,000 credit limit. Information technology doesn't have a 0% introductory APR, simply instead features a regular April of 8% on all purchases and balance transfers. The terms of the card require a fee for residual transfers — calculated as v% of the residue or $ten (whichever is greater).

Y'all transfer the unabridged $1,000 balance to this card. Since 5% of $1,000 is $l, and that's more than $10, correct away you will owe $1,050 on the new card. If you pay $xxx each month with this 8% APR, it would take you over 3 years to pay off the residue, and yous'd pay $134.70 in interest.

In this example, since the Apr is lower, you'd stop up paying off the original $i,000 debt about a year sooner. You'd besides salve over $300 in interest. It'due south a good deal, but not quite equally good every bit the offering of 0% APR for eighteen months with no residual transfer fee.

Hopefully these 2 examples illustrate how a residual transfer might be able to save yous coin. They should too demonstrate why it'due south important to shop around when you're considering a new residue transfer credit card. Finding the all-time offer might help you save more money and go out of debt sooner.

Just take notation that both of the examples above make an important assumption. They assume yous're not accumulating any additional credit menu debt while y'all're paying off your existing debt. Taking on more debt after a residuum transfer can dig you lot into a deeper fiscal pigsty. Increasing your credit card debt (and particularly your credit utilization) could accept a negative impact on your credit, as discussed in the next section.

How Will a Residuum Transfer Affect My Credit?

Some people are hesitant to open up a new carte with a remainder transfer offering considering they fear it might lower their credit scores. Depending on your credit history, that might exist truthful in the curt term. But a balance transfer can nonetheless be a great move for your credit and your wallet in the long run.

Opening a new credit card and transferring a residue to it tin touch on your credit scores in several ways:

When you apply y'all'll typically become a hard inquiry on your credit reports, which tin lower credit scores slightly.
Opening a new credit card can lower your boilerplate historic period of accounts, which can lower credit scores.
Having a new credit card volition increment your full credit limit, which can lower your credit utilization; this can exist good for your credit scores.
If y'all transfer several balances over to the new card yous can reduce your number of accounts with balances, which can be good for your scores.

Check out credit expert John Ulzheimer's Q&A video to acquire more.

What Happens When Yous Open a Residue Transfer Credit Card?

When you lot open a new credit card in club to transfer a rest from an older menu, it's what happens earlier and after the balance transfer that impact your credit nearly. To take advantage of a zero percent interest balance transfer, y'all must first qualify for the offer. In society to qualify, y'all have to apply.

Insider tip

Non sure if you'll qualify for a particular credit card? Larn how to see if you're pre-qualified for any credit cards before you apply, without hurting your credit scores.

Research for Credit

When you lot apply for a residuum transfer card, the credit card issuer volition pull your credit. At this point, an enquiry volition exist added to your credit report.

When it comes to your credit scores, the impact of hard credit inquiries is ofttimes overstated. Inquiries are largely responsible for ten percent of FICO Scores. Simply credit scores only count inquiries fabricated in the last 12 months. Unless you have numerous inquiries in the last year, inquiries commonly aren't a big deal where your credit scores are concerned.

Inquiries are a normal function of the procedure of applying for new credit. Just retrieve not to use for too many new credit cards (or other forms of credit) in a brusque amount of time. Otherwise, those difficult inquiries could potentially become a trouble.

New Business relationship Opening AKA "Fourth dimension in File"

Some other cistron that impacts your credit scores is the age of your credit card accounts.

If your application is approved, you'll receive a new credit card and the card issuer will begin reporting the new business relationship on your credit reports.

Your length of credit history is largely responsible for fifteen per centum of your total FICO score. Credit scoring models consider the appointment each of your credit accounts were opened to make up one's mind the historic period of each account individually and the average age of your accounts in aggregate. You may see a slight drop in your credit scores when you open a new account due to this gene. Yet, as with the inquiry, the credit score impact is typically small-scale.

Credit Bill of fare Balances and Revolving Utilization

When yous open a new credit card account, the new credit limit (and any balance y'all have) will impact your credit scores because your revolving utilization rate will change.

Revolving utilization measures how loftier your balances are in relation to your credit limits. Information technology's largely responsible for thirty% of your FICO credit scores.

The lower your revolving utilization drops, the higher your credit scores will typically climb. This is why maxing out one or more than credit cards can potentially drop your credit scores quickly.

When y'all open a new remainder transfer credit card — or any credit card for that affair — the credit limit on the account will be factored into your total or aggregate revolving utilization. The addition of the new business relationship will most probable increase your overall bachelor credit.

And therein lies the silver lining: Opening a balance transfer bill of fare may actually assistance to boost your credit scores. The central is to go along the old credit carte du jour open afterward you transfer the balance to the new bill of fare. You should also avert charging new debt on the original card. Otherwise, you lot're defeating the purpose of the introductory balance transfer offering and could be setting yourself up for a credit and financial disaster in the future.

Number of Accounts with Balances

There's another potential way a new balance transfer card might improve your credit scores besides. If y'all open a new credit card and transfer outstanding balances away from several existing credit card accounts at one time, you may lower the number of accounts with balances that show up on your credit reports.

FICO scoring models consider the number of accounts with balances on your credit reports — the fewer, the ameliorate. When several of your existing accounts are updated to show $0 balances, your credit scores may benefit. Again, just brand sure not to close your original credit cards later on they're paid off or you could risk dissentious your scores by accident.

How to Transfer a Credit Card Balance

Once you lot've decided you want to do a balance transfer, the procedure is pretty easy.

1) Figure out where the balance is going

First, you lot demand to know where y'all're transferring the balance. Some options may include:

A credit bill of fare you lot already have that charges a lower involvement rate than what you're paying on another account
An existing credit card that has extended a 0% or low-charge per unit rest transfer offer to you
A new credit card you just opened, possibly with a special offering favorable to remainder transfers

Looking for a new credit card with a balance transfer offering? See our favorites here.

2) Decide credit bachelor

2d, you lot should verify the credit limit and available credit on the card you're planning to transfer the balance to. Make note of how much credit is available.

Also, wait for any limits on balance transfer amounts. Some cards may limit how much y'all can transfer, and that may not exist equal to the credit limit.

3) Empathise the terms and fees

Third, read and empathize all the terms of the card to which y'all're transferring the residue. Here are some things to consider virtually the terms and fees:

If there's a special 0% intro APR on residue transfers, make sure yous empathise the length and conditions of that special menstruum. If you don't have a program to pay off the balance completely past the time the 0% introductory period is over, you might need to reconsider whether a balance transfer is a good idea for you.
If you lot're applying for a new card, be sure the rate you lot apply for is the rate you get. Check the terms before you apply for the new carte du jour and again when you lot're approved. Depending on your credit history, the introductory APR may not exist the 0% you were expecting.
If yous plan to use the carte du jour for purchases, see if the new Apr applies to both transferred balances and new purchases. Some cards will only apply the 0% April to the transferred debt and charge a much college April for new purchases.
Read the fine impress of your balance transfer offer. See if the carte du jour issuer will use interest retroactively to the engagement the rest was first transferred if the debt isn't paid in full by the terminate of the introductory menstruum. This possibility isn't very likely with popular balance transfer cards. Yet, if a card issuer does accuse retroactive interest it could greatly increase the overall cost of the transfer if y'all don't pay it off in fourth dimension.
Bank check the carte terms for whatsoever residuum transfer fees and take those into account. These fees could increase the overall amount of debt you lot owe, at to the lowest degree in the short term.

Balance transfer offers vary. Information technology's important to read the full terms and conditions of any offer (and any credit card) to be sure you empathise everything that will happen if you make a balance transfer. In the following example, making a balance transfer at the intro April will impact the interest rate for purchases and how interest is calculated on purchases:

waive other offers

4) Decide how much you want to transfer

Fourth, figure out how much y'all want to transfer. There are a few things you'll demand to consider while deciding how much you want to transfer:

How much credit is available on the card you're transferring the balance to?
Is there a limit to how much money tin exist transferred?
Will a fee for the incoming transfer exist added to the account you're transferring a balance to? If so, how much?

Remainder transfer fees could reduce the amount of debt you tin transfer (if you're aiming to apply the maximum allowed).

5) Initiate the transfer

Finally, when you understand the terms and know how much debt you want to move to the new business relationship, you can initiate the transfer.

You initiate the transfer using the menu you lot're transferring the residuum to.

You lot can by and large initiate a balance transfer on the website of the card where the debt volition be moved. You probably won't accept to do anything special on the website of the bill of fare you're paying off.

If you can't find out how to initiate a balance transfer on the issuer'southward website, call the phone number on the back of your bill of fare for help. Once you start the transfer, y'all should run into the residual on the carte you're transferring to increase. The balance on the card y'all transferred from should decrease. You may need to allow effectually a week for these changes to take identify, but the timing tin can vary between card issuers.

six) Pay off your credit card debt!

Now that you've made the balance transfer, make sure you lot pay off your credit card debt before the reduced rate expires to eliminate or avoid interest. You may be tempted to close the card you transferred the remainder away from, just it'southward probably better for your credit scores to leave that card open up and not use it.

You may likewise desire to take this opportunity to think about your spending habits. Information technology'southward important to avoid accumulating more credit bill of fare debt while you're paying off the transferred balance so yous don't end up in the same situation again.

1 strategy for paying off a transferred rest during a 0% introductory menses is to gear up an automatic payment program. Automatic payments may help you pay off the card'due south balance before the depression-rate period ends. Use a payment reckoner to decide how much you will need to pay each calendar month to get to a $0 balance before the introductory APR ends.

Here's an example. If you lot accept advantage of a zero percent offering that lasts 12 months, a $five,800 remainder transfer becomes roughly $6,000 one time residuum transfer fees are applied. In this scenario yous'd demand to pay around $500 per month to take care of the full residuum by the time the introductory rate expires.

If yous're not sure you'll be able to avert adding more than debt to the new card remainder, yous should think carefully before getting the account and transferring your balance. Depending on the offer, the new APR could be college than the April on the menu you left behind, in one case the introductory rate ends.

Another smart strategy is to transfer the balance over to your new business relationship and so put both cards abroad until yous become the balance down to zero. Don't make either card an option for new purchases until you're credit bill of fare debt costless.

How to Pay Off Debt: 6 Strategies That Work

Were y'all able to improve your financial state of affairs using a balance transfer? Permit us know!

What Are the Best Balance Transfer Cards?

Our current picks for the best balance transfer credit cards are:

U.S. Bank Visa® Platinum Menu (Review)
Citi® Diamond Preferred® Card (Review)
Citi Simplicity^® Menu (Review)
Wells Fargo Platinum menu (Review)

You can acquire more about these cards and why nosotros chose them in our post: Best Balance Transfer Credit Cards.

The data related to U.S. Bank Visa® Platinum Card has been collected by Credit Menu Insider and has not been reviewed or provided by the issuer or provider of this product.

Citi is a Credit Carte du jour Insider advertiser.

Citi is a Credit Bill of fare Insider advertiser.

Citi is a Credit Card Insider advertiser.

The All-time Remainder Transfer Credit Cards

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