Get Cashback up to AED 2000
Get Cashback up to AED 2000
And while it might be possible for you to pay off your credit card bill indirectly by using the cash advance approach – for example, using a different card to obtain cash at an ATM – opting for this method would be very expensive and also inefficient, making it a not-so-appealing choice.
But, the silver lining here is that there is at least one way via which you can use one credit card to pay off the dues on another and come out of the situation. This is the balance transfer method. Yes, you could opt for the balance transfer feature and transfer your debt from one credit card to another. However, there are certain rules and regulations applicable here.
You can actually end up saving money on the rates of interest when you move debt from a credit card that has a high-interest rate to a credit card that might be offering the 0% APR for a set introductory period or probably a low-interest rate for the balance transfer facility, and then paying off your balance for an overall lower rate.
There are different balance transfer fees charged by the different providers. These transfers are not immediate either they can actually go up to taking weeks to get through. Also, you generally do not earn any rewards on them.
Paying off your monthly credit card dues with different cards generally is not a bright option to go with. You should not even start to expect that you would earn the easy points or miles in this never-ending cycle or that you can buy yourself more time in a quicker way with this option.
The various credit card issuers in the market require you to provide them with a bank account number while you are paying off your bills, be it using online platforms or using telephonic platforms. You will be required to provide information such as an account and routing number, and you cannot just substitute this information with a credit card number.
In part, these restrictions are in place because credit card providers want to limit their degree of risk. A customer that makes use of credit cards to pay off dues on another credit card may have a higher probability of defaulting on his/her payments.
It is possible for you to use your credit card to obtain cash by using an ATM and then make use of these funds to pay off the debt on another credit card. However, such transactions i.e., the cash advance, typically comes at high fees and charges and high-interest rates too. This makes it an extremely expensive method to obtain cash.
It is definitely not the way one should go if earning maximum rewards is one of the goals. Cash advances typically do not earn rewards. And in some cases, even if they did, the high charges associated with it and the high rates of interest on them would exceed any value of benefits that one might be earning on the credit card.
When you are facing a slight financial crunch, your money is tight, and you do not have the option at hand to pay your credit card dues with the help of another card, you might be left amidst the confusion and stress of how to cover your minimum due, especially if they come along with some bad consequences of not paying other bills such as rent, child care, car payments, etc.
If you are somewhat in a similar situation, here are some things that can help you out to begin with: