Can you use a credit card to payoff another credit card?

The term for this is “transfer balance” which is basically transferring the balance of one credit card to another credit card. In essence, you are “paying off” one credit card by transferring your debt to another credit card. Some banks allow balance transfer and some don’t so it is best to inquire first before considering a balance transfer transaction. It is also advisable to inquire about the balance transfer fees or rates before requesting for a balance transfer.

Transferring balance from one credit card to another is often offered by credit card companies in order to attract more clients or customers. Credit card companies offer incentives such as rewards points, low interest rates or interest-free periods to entice customers to avail of their credit card packages.

Balance transfers are one way of consolidating all your debts into one credit card. A balance transfer from a credit card with high interest rates to a credit card with lower interest rates can sometimes be more manageable and beneficial in the long run. However, one needs to know important details such as interest rates, balance transfer, fees, and payment periods in order to effectively manage one’s transferred debt.

Zero interest rates or balance transfer fees used to be common with credit card companies. However, recent regulations and the economic situation may have changed this for credit card companies. Most of the time zero rates or fees are offered to those who have excellent credit standing. Anyone considering a balance transfer should assess their own situation first.

One also needs to remember that transferring balance from one credit card to another only means transferring the debt and he/she still needs to pay off that debt in one way or another.