Jump to content

Can you use a credit card to pay the bill on another?


Recommended Posts

I've not seen any that allow this. IN fact most of the time when you make a balance transfer you still have to pay the monthly min on top of that. That being said, if you are in a serious pinch you ca take cash out of one card from an ATM and use that to pay another card.

Link to comment
Share on other sites

Hey guys, a very long time ago I heard that Master Card had a card that would allow you to pay for other cards and I agree with you on the possibility of getting yourself in trouble but from a debt consolidation point of view it seems plausible to consolidate your other card debts into one bill by paying them up with that card and only having to pay the one bill out of your pocket.

What do you guys think?

Link to comment
Share on other sites

Hi folks!

If the goal is to reduce your CC balance from one CC and you are not concerned about FICO score for at least a year, then it may be a good thing; however, you need to look at the rules the new CC sets up. For example, the new CC that offers a balance transfer you need to look at:

1. Balance transfer fee rules both the old CC and the new CC: some are free, some are low, and some are high fees.

2. How much are they are willing to transfer from old CC to new CC?

3. How long is this promotional offer is... 6 months ? One year ?

4. What is the the promotional rate for this? Some offer zero APR rate for one year, others may offer low rates such as 2.9% for 6 months.

5. What are the APR rates and the purchase rules as well as the apr rates after the promotional offer expires ?

5. Be aware that the new credit card has to be a different company! Other wise the balance transfer from your own CC could be considered as a cash advance.

For example, there is a new ruling with BOA with the merging of MSBA:

Cash advance Balance transfers 14 %

ATM cash advance 24 %.

And if you have purchases on top of this you have to pay off the purchases before you can even begin paying off the cash transactions! 24 % for a typical $2,000 cash advance adds up to 68 bucks including the mininum payment a month for every month until the purchases are paid up.

Also be aware when you are in the middle of transactions you must keep paying your monthly payments to the old CC until you have the paperwork that states the actual transaction, if you don't you end up with a late payment charge which could be 30 % each month...

Don't forget you also have to keep paying your old card, so can you afford to pay two CCs?

The game plan begins when you do your homework wisely!!!

You could do very well, in fact, you could also tell your old CC Co that you are looking for lower rates and are looking at balance transfers with a new CC , they will compete, especially if you are a good customer... they did with me and I got from 9% to 7 .4 %.

So look for:

  • Zero balance transfer fees
  • Zero APR rates for at least a year
  • Get balance transfer amounts as much as they are willing to
  • Apr rates after the promotional rate should be not more than 7.4%
  • Pay off as much as you can for this plan

If others have more suggestions please... input here...Thanks!:D

Take care and good luck!

Suki

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.