Credit cards offer a convenient way to pay for shopping, utility bills, travel, and even emergencies. They let you spend now and pay later—an advantage as long as you pay your dues on time. However, if you miss a payment, interest charges and late fees can quickly pile up, even on lifetime-free or no-fee credit cards.
These charges can be steep, and over time, paying just the interest can take a significant chunk out of your salary, turning into a recurring financial burden. In such situations, the idea of making credit card-to-credit card payments may seem tempting. Unfortunately, most issuers don’t allow such payments. That said, there are indirect methods to manage this issue more efficiently and reduce the impact of high-interest charges.
Balance Transfer
A balance transfer allows you to move the outstanding balance from one credit card to another – helping you manage your finances more strategically. It simplifies repayments by consolidating debt from multiple credit cards into a single one as long as the total transferred amount stays within the new card’s credit limit.
Balance transfer makes it easier to:
- Track payments
- Reduce the overall interest burden
However, not all banks offer balance transfer services, so you’ll need to find one that does. If you’re currently paying high interest on your credit card, switching to a card with a lower interest rate through a balance transfer can lead to significant savings. Read the steps below to understand how balance transfer works:
- Check how much you owe and see if the new card’s credit limit can cover it
- Compare balance transfer offers and choose a card with low interest rates, reasonable transfer fees, and a suitable credit limit
- Apply for the new card with correct details about your existing credit card debt
- Once your new card is approved, request the transfer either online or by contacting the card issuer directly.
- After the transfer, pay off any remaining balance on your old card and focus on repaying the new balance
Personal Loan
A low-interest personal loan instantly helps clear high-interest credit card debt. Check the terms, interest rate, and repayment period before applying. A long-term loan lowers your monthly instalments. If high EMIs seem out of your budget, choose a longer tenure to make it more affordable.
Timely repayments boost your credit score, helping you clear debt while improving your credit health.
Pros and Cons of Credit Card to Credit Card Transfers
Credit card to credit card payment methods come with their own set of advantages and disadvantages. Here’s a table to explain it properly:
| Pros | Cons |
| Avoid late fees and maintain a high credit score, which improves your chances of qualifying for loans and credit cards with better terms | Pay balance transfer or cash advance fees, depending on the bank’s policy |
| Stay in control of your credit card debt through better planning and consolidation | Miss the promotional period, and you could face higher interest rates, adding to your financial burden |
| Take on added responsibility when using another card to manage payments |
Factors to Keep in Mind
Keep these points in mind before opting for a credit card-to-credit card payments:
- Reduced Available Credit: The transferred amount reduces your credit limit on the new card
- Limited Low-Interest Period: Introductory rates last for a short time- once the period ends, standard interest rates apply.
- No Discount on New Purchases: Promotional rates usually apply only to the transferred balance, not to any new transactions
- Card Tenure Requirement: Some banks approve transfers only if you’ve held the card for at least a year
- Effect on Additional Spending: Avoid using the new card for purchases until the transferred balance is fully paid off
It’s important to manage credit card payments systematically to avoid needing a loan to clear your debt. While methods like balance transfers can offer short-term relief, they’re not always the best solution. They’re effective if you’re facing a temporary financial crunch. Instead, focus on building better payment habits. Learn from past mistakes and work on curbing overspending to achieve lasting financial stability.
Additionally, choose a credit card that matches your spending habits to maximise your savings. The One Credit Card stands out with its powerful features, daily savings, and simple application process. Get instant cash access through OneCash, convert large expenses into EMIs, and earn 5X rewards on your top two spending categories every month.
Stay in control of your finances with this sleek metal card, and use the OneCard App to set limits and manage your expenses. Apply online today to make one of the best no-fee credit cards yours!
