Can You Really Pay A Credit Card Bill Using Another Card & What Actually Works

Managing credit cards responsibly has become an essential part of modern financial planning. Yet, many users occasionally find themselves short of funds when a bill is due, raising the question of whether one credit card can be used to clear the dues of another. Banks in the country do not permit such direct payments, primarily to prevent escalating debt cycles. However, there are legitimate mechanisms through which card-holders can manage their outstanding balances if used carefully and with full understanding of the terms involved.

Why Direct Card-To-Card Payments Are Not Permitted

Banks only allow credit card bills to be settled through approved banking channels such as internet banking, NEFT, UPI payments from savings accounts, or cash and cheque deposits. The system is designed this way to ensure transparency and prevent customers from taking on hidden or additional debt. If direct card-to-card payments were allowed, users would effectively be borrowing from one credit line to repay another, creating a revolving loop of increasing liabilities rather than reducing them.

Financial institutions therefore require every credit card transaction or bill payment to be routed through a verified bank account. This protects customers from inadvertently entering a high-risk debt spiral and helps banks evaluate repayment patterns accurately.

How Balance Transfers Provide A Clean Repayment Route

One of the most recognised ways of shifting outstanding dues from one card to another is the balance transfer feature. This facility allows a card-holder to request a new issuer to settle the dues on an existing card. Once the transfer is completed, the borrower repays the new issuer under the revised terms.

Balance transfer plans often come with introductory interest rates, structured instalments, or promotional tenures. These features make them especially attractive for users trying to consolidate debt into a more manageable repayment schedule. The key benefit is the breathing room it provides without resorting to unregulated or risky hacks. However, card-holders must examine processing charges, interest rates applicable after the promotional window, and repayment durations to avoid surprises later.

Why Cash Advances Are A Risky Last Resort

Users sometimes consider withdrawing cash from one credit card to pay another bill. While this is technically possible, it is rarely advisable. A cash advance attracts interest from the very moment the withdrawal is made, without any grace period. Additionally, high transaction fees and steep daily interest accumulation can cause small withdrawals to balloon into significant dues within weeks.

The moment cash is withdrawn, the user also loses the interest-free period on new purchases for that billing cycle. This means that even minor expenses can begin accruing interest immediately, adding further strain. Cash advances should therefore only be used when absolutely unavoidable and with full awareness of the cost involved.

Why Wallets And Third-Party Apps Cannot Be Used

Most digital wallets and third-party UPI applications do not support direct credit-to-credit payments either. Even if a wallet allows a card to be linked, the funds must still originate from a bank account for the transaction to qualify as a legitimate bill payment. This restriction ensures that the source of funds remains regulated, verifiable, and compliant with banking guidelines .

Users attempting workarounds may find that the system blocks these transactions automatically. Banks have tightened these pathways to reduce misuse and to encourage responsible repayment practices.

What Credit Card Users Should Keep In Mind

For anyone struggling to clear their dues, the balance transfer option remains the most organised and bank-approved method. It allows borrowers to manage their repayments at lower rates and without the complications associated with cash withdrawals. Before choosing any repayment method, users should compare interest rates, check for hidden fees, and understand whether the facility offers long-term relief or only a temporary pause.

Avoiding impulsive or informal methods is essential, as such shortcuts often end up costing more in interest, penalties, and loss of benefits. Ensuring disciplined repayment habits, using credit cards within limits, and keeping emergency funds for sudden expenses can prevent these challenges from arising in the first place.