By understanding how to pay other credit card bills using one of your credit cards, you can effortlessly maintain your cash flow. This option is reliable when you don’t have immediate finances available, but your credit card bills are due soon.
In such circumstances, you can easily pay your bill with another card which has a balance available. This is an emergency solution to avoid damage to your credit score and helps dodge any penalties. Here are some effective methods you can choose from.
Understanding How Your Billing Cycle Works
Before paying your credit card bill using another credit card, it’s important that you understand how a billing cycle works. This is the 28–30-day period during which the issuer tracks all your credit card transactions. After that, they generate a statement with your total due amount along with transaction details.
Assume your bill was generated on 15 November and the issuer has 30-day cycles. Then your next billing cycle starts on 16 November and goes to 15 December. However, you get a buffer period to pay bills, which is the most important aspect of paying another credit card bill.
This buffer is called an interest-free period, which varies from 10 to 15 days, depending on the issuer. Knowing this grace period of your credit card cycle, you can pay another credit card bill without any risk of additional charges. This way, if your credit card bill is due by 16 November, pay it with another credit card and enjoy interest-free credit up to 30 December.
Strategies to Pay the Credit Card Bill Using Another
While paying the bill with another credit card is possible, you have direct and indirect ways to do so. Take note of these methods to help you clear your dues.
- Through an E-wallet
One quickest and most convenient solutions is transferring money from your credit card into your digital wallet. After that you can use it to pay your bill or any other expense. This option takes only a few minutes and there are no restrictions on how you can use the amount in your wallet.
- Getting a Loan
If you are planning to pay multiple credit card bills or have a significant amount to pay, getting a loan against your credit limit may be ideal. This option gives you a lump sum amount with a streamlined application process. However, there may be processing charges, interest and other fees involved. Thereafter, you can pay back in affordable EMIs.
- Cash payment
Another option is to withdraw cash using another credit card, deposit the money at your issuer’s branch and pay the bill. This option should be the last resort as it attracts high interest rates and a high risk of default.
- Credit Card Balance Transfer
Choosing this option, you can transfer your existing credit card’s due amount to another card with a lower interest rate. Over time, you can pay the bill without paying high interest. Consider this method if you don’t have the means to pay off your bill immediately but want to avoid unnecessary fees. Cards that offer this feature often have a zero-interest period for the first few months or lower interest rates.
Tips To Avoid Delays in Credit Card Payment
While credit card to credit card bill payment is a viable option for emergencies, you should not make this a habit. This is because there are other charges involved in using a second credit card. Additionally, it increases the chances of debt accumulation, increasing your financial burden.
That said, here are some tips for paying your credit card bills easily.
- Understand your billing cycle well and plan your finances accordingly
- Avoid using multiple credit cards at the same time if there is a cash crunch
- Set up automatic payments to pay the bills to adhere to due dates
- Consider paying the bill of a credit card with the highest interest rate first
- Avoid paying only the minimum due as the balance incurs interest and increases your debt obligation
- Consider a debt consolidation loan to manage multiple card bills at the same time
- In case of multiple debts, pay the bill with the smallest balance first
From the given options, select a strategy that suits your lifestyle and financial requirements. You can also avoid the high interest rate by making timely payments. The One Credit Card can be an excellent choice as you can pay your credit card bill using the EMI option. You can also make the most of the powerful One Credit Card mobile application to control all aspects of your usage.
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