Comments on: Have you ever tried to pay your credit card bill using another credit card?

By: Big Brotha Mike

Big Brotha Mike — Sun, 03 Jan 2010 22:55:56 +0000

Yeah, I have Fidelity Signature Rewards Visa that I use to pay for my other credit cards. The reason I have other credit cards is that they have good rewards in different categories (e.g. gas, grocery, utilities, etc.). I just funnel my normal expenses through my various rewards cards to maximize my rewards. Then I pay them all off in full each month (on my Fidelity card).

Paying my other credit cards with the Fidelity card is convenient, plus it gives me one more month of “float” which earns me an extra $100-$200 per year in interest while the money sits in a high-yield liquid money market account.

By: darckling

darckling — Thu, 31 Dec 2009 23:15:33 +0000

yes, quite a lot of people do it all the time these days.

By: Steve D

Steve D — Wed, 30 Dec 2009 12:53:51 +0000

While you could do this, it would not be financially smart. That would be considered a balance transfer if you went direct from one to the other or a cash advance if you took the cash to pay off the other. In cases of balance transfer, the credit cards usually charge a 2 or 3% transfer charge on the balance - which translates into 24 - 36 percent annually - a much higher interest rate then you would have just making the normal payment. Cash advances usually accumulate interest from day one - and usually at a higher rate then the normal interest rate.

Balance transfers usually only work out when you can get an introductory no-interest card - that way you save the interest charges for the length of the introductory offer in exchange for paying the 3% up front — let’s say you transfered $1,000 to a twelve month introductory card from a 10% annual interest rate card. Simple interest for a year on card one would be $100 ($1,000 times 10%) while the transfer fee would be $30 ($1,000 x 3%). This transfer would save you $70 if you paid off within the year.

By: Emily

Emily — Tue, 29 Dec 2009 03:20:43 +0000

You can do it, it’s called a balance transfer. Sometimes you can get a new credit card with a lower interest rate so it is worth it to transfer the balance of a credit card with a high interest rate.

By: hotmama123

hotmama123 — Mon, 28 Dec 2009 08:01:47 +0000

NOOOOOOOOOOOOOOOOOOOO!!!!!
These are dangerous games.