It is not uncommon for someone to have multiple credit cards – in fact, it can be a good thing. Based on data from Experiential, American consumers have an average of four credit cards. Therefore, you might have wondered if you can pay off one credit card using another.
Here’s what you need to know about the process and how it can help.
Can you pay for a credit card with a credit card?
Most credit cards have a balance transfer function which allows you to efficiently pay for a card via a separate card. If you want to request a balance transfer, you can do so by contacting the company that issued the credit card you want to transfer your balance to.
You can do this through your online account or by calling customer service. If you are request a new card, you may even be able to submit your application during the application process.
Whenever you are considering a new credit card, it is always a good idea to shop around. The Credible Online Marketplace makes the process easier by breaking down each type of card and listing the perks, offers, and fees that may be associated with a new card. Start shopping today.
Some cards are even designed specifically for balance transfers. These types, called balance transfer credit cards, usually offer a 0% introductory APR promotion, which can last from a few months to almost two years. If you’re trying to pay off your credit card balance, moving it to a balance transfer card could help you save money while eliminating your debt.
Those looking for balance transfer cards, which typically come with an introductory 0% APR – or a fairly low APR – for 6 to 18 months, can use Credible’s free online tools to view their options.
HOW TO FIND THE BEST CREDIT CARD FOR YOUR NEEDS
How do I get a balance transfer card?
Several banks and credit unions offer balance transfer credit cards and many of them offer additional features that can make them useful for different situations.
For example, some balance transfer cards offer a 0% introductory APR on new purchases, and a chance to earn a welcome bonus and rewards on your daily purchases. Additionally, balance transfer cards may offer varying terms on their interest free promotions.
Credible can show you the best credit card options currently available – and you’re not limited to balance transfer cards, although if that’s what you need, they’ve got you covered. Click here for learn more about balance transfers, rewards cards and other cards to save money.
HOW TO OBTAIN A BALANCE TRANSFER CARD
What Are Other Ways To Consolidate Credit Card Debt?
Credit cards with balance transfer can be a great way to consolidate and pay off your credit card debt. But because credit cards don’t have defined repayment terms, and balance transfer cards generally require good or better credit, you may also want to consider these alternatives.
The other best option for credit card consolidation is a Personal loan. You can use personal loan for just about anything – debt consolidation is one of the most common reasons.
You can visit Credible to find the best loan rates and decide what debt it makes sense to pay. They allow you to view multiple debt consolidation loans in one window.
Here are some reasons why you might want to consider a personal loan over a balance transfer.
- They offer a fixed repayment schedule
- They are more widely available
1. They offer a fixed repayment schedule: Personal loans offer a fixed repayment schedule, which can be good if you’ve struggled to pay more than the minimum amount owed so far on your credit cards.
2. They are more widely available: Personal loans are also more widely available than credit cards with balance transfer, and you don’t need exceptional credit to be approved, and you might not be limited to low. Credit limit.
If these benefits appeal to you, you should immediately start shopping around and comparing lender offers. Find out what type of personal loan rate you qualify for today.
WHAT SHOULD I USE A PERSONAL LOAN FOR?
That said, there are also downsides to getting a personal loan instead of a balance transfer.
- It might be harder to get
- They do not offer 0% introductory APR
- Some companies charge an upfront set-up fee
1. It might be more difficult to get: The lower your credit score, the more difficult it will be to get a loan with a favorable interest rate.
2. They do not offer 0% introductory APR: Personal loans don’t offer introductory 0% APR promotions, so you could end up paying more interest.
3. Some companies charge an initial set-up fee: Finally, it’s important to keep in mind that some personal loan companies charge an upfront set-up fee, which can range from 1% to 8%, depending on the lender. Additionally, most balance transfer credit cards come with a balance transfer fee, which ranges from 3% to 5% of the transfer amount. So keep this in mind when comparing your options.
You can visit Credible to find out how much a personal loan would cost with its personal loan calculator and also search for the best personal loan rates without a credit check.
CAN YOU GET A PERSONAL LOAN WITHOUT CREDIT CHECKS?
When to consider a credit card with balance transfer
If you are looking for a balance transfer card To consolidate your debt, here are some situations where it is worth considering:
- Your credit is doing well: Check your FICO credit score for free with Experian or Discover Credit Scorecard to see where you stand. A good credit score usually starts at 670.
- You do not have an offer on a current card: Some credit card issuers periodically send balance transfer checks to cardholders, typically with a 0% APR promotion. If you can use an offer on a current card, you may be able to avoid applying for another card, which will lead to a difficult investigation of your credit report.
- You have a project : Moving a balance from one card to another will not alone solve your debt problem. If you do it without a plan and continue to take on debt, it could make the problem worse. Therefore, only consider a balance transfer card if you plan to pay off the debt, preferably during the promotional period.
A balance transfer card isn’t for everyone, but if you think it’s the right financial decision for you, visit Credible to compare your options.
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