Although it might sound like a good idea to pay a credit card with a credit card, it is not that easy. Credit cards are designed to be used on-the-go or in case of an emergency. They are not designed to pay a credit card with a credit.
There are other financial tools you can evaluate that are better suited to pay off your credit card bills. With a few small pieces of paperwork and speaking with your creditors, you will be able to escape credit card bills that have been suffocating you.
Avoid Trying to Pay a Credit Card With a Credit Card
Credit card debt is a common problem in today’s society, but it is helpful to avoid trying to pay a credit card with a credit card. Why?
Different credit cards offer different benefits. Regardless of the benefits, it is wise to avoid enrolling in too many credit cards at once. Credit card debt often holds people back from getting a mortgage, getting a good auto insurance policy and it even has an effect on renter applications as well.
It is not smart to pay a credit card with another credit card for many reasons. If you have a maxed out credit card in your name, you are responsible for making the payments. While you do have the option to pay the minimum balance, your credit score will be effected.
Alternative Options for Paying Credit Card Bills
There are other ways you can wipe out a credit card balance using an alternative line of credit. While each option has their own benefits, it is important to evaluate each option carefully for yourself.
Credit card companies will not allow you to pay one credit bill with another credit card. That is just asking for bad credit problems. However, there are a few ways you can pay off your credit card bills if you are in a financial bind. By using convenience checks or a cash advance, you will be able to pay off your credit card bill on time.
As mentioned, it isn’t a good idea to take out cash from your credit card. That will damage your credit score and dig you into a bad financial situation.
Balance Transfer Options
If you haven’t heard what a balance transfer is, you might want to look into this option. Balance transfers help you take the outstanding balance on one credit card and moves the balance to another credit card. Credit card companies will offer helpful introductory offers like balance transfer options to entice you to enroll with them.
While you might think the credit card companies are foolish, they know what they are doing. Card issuers will offer enrollment offers so you use their card as your preferred payment method in the future. They want you as a long term customer, so they don’t mind accepting your outstanding balance transfer.
In fact, most companies take your balance transfers because they are collecting a fee to do so. Most credit card companies charge anywhere from 3-5% of your total balance as a fee to accept your balance transfer.
Although that fee is a drag, these balance transfers come with 0% APR. This means your monthly payments will go directly to your principle to pay it off quicker.
You can use balance transfers to eliminate your credit card debt with one company and direct your payments to only one credit card. When you enroll in a balance transfer, it is important to keep up with your monthly payments. Make sure you maintain the minimum payments each month and it is encouraged to pay more if you are able to swing it financially.
Paying Off Your Credit Card With Bad Credit
If you have bad credit, it is important to stay on top of your credit card bills. Making your payments on time will help you, especially if you have a bad credit score.
If you do not pay off your credit card with bad credit, it could be detrimental to your financial profile health. Be sure to stay up to date with your credit card payments.
Once you pay off your credit card balance, you will wipe out your debt and be free of creditors. From here you will be able to improve your credit score for a better financial foundation.
Monitoring Your Credit Score
Any time you are using a credit card, it is important to be mindful of your spending. Whether you are trying to take out a personal loan or get financing on a new computer, monitoring your credit score is a critical attribute for your financial profile.
Lenders evaluate your financial profile based on many different factors that include your age, your employment, your monthly income, any outstanding liabilities and your family situation as well.
Credit Card Debt Help
If you have credit card debt, it is helpful to know you have options. Credit card debt is a dangerous road to go down, so it is important to nip it in the butt quickly.
Eliminating credit card debt requires a few financial maneuvers to fix your finances properly. You can explore credit card debt consolidation or relief plans if you are in a tough situation. You may struggle to find favorable balance transfer options, so these alternatives are also good suggestions. Whether you are in as little as $5,000 worth of debt or if you are substantial debt upwards of $100,000; there are options for you. If you have debt, make sure you stay aware of the interest rates and your monthly payments.
Debt Consolidation and Debt Settlement
Debt consolidation plans are helpful in a similar fashion as balance transfers. If you are wondering what debt consolidation exactly is, it is simply taking the sum of all debt amounts you have and rolling them into a larger debt amount. Debt consolidation is different than a balance transfer because you are taking out a financial loan to consolidate your different loan amounts.
Many Americans fall into debt problems, take the proper measures you need to find your financial freedom. Once of the cheapest ways to get rid of your debt is debt settlement. Debt specialists take over and request to stop making any further payments.
The debt specialists then negotiates with your creditors on your behalf to agree on a settlement number to drastically reduce your debt amounts. Be careful to avoid having your bank account default because that can also be very bad for your credit score.
Escaping Credit Card Bills
Once you are able to eliminate your debt, you’ll need to manage your credit card bills very closely. Be sure to maintain just one credit card rather than multiple cards. In doing so, you will be able to manage your expenses more closely. It is also smart to keep track of your receipts to make sure they align correctly with your monthly statements. If you notice an unusual charge, chances are you should call your credit card company to raise a flag.
Although credit card bills are the worst, credit card companies are here to help you. Make sure you communicate as a loyal cardholder so your credit card company provide the best customer service possible. If you are going to use their tools to make financial transactions, you should take advantage of their support team.