Many banks offer the option of a Balance Transfer facility on select credit cards.
Paying your credit bills can be burdensome, especially if you have extravagant spending. You will have to pay a late payment fee, exorbitant interest rates and other additional costs if you don’t pay your credit card bills on time. Frequent missed payments can also result in the interest-free grace period being revoked, a lowered credit limit and a lower credit score. You want neither of these to happen so the question is what do you do if insufficient bank balance disallows you to pay your credit card bills?
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Can you pay the credit card bills of one card with another? Yes, you can, since some banks offer the option of balance transfer where you transfer the amount spent by you from one card to another. For this, the credit limit of the other card must be more than the amount spent. The bank or financial institution, the card which you want to use to transfer the balance, will charge a processing fee. Consumers who wish to cut costs frequently utilise credit card balance transfers to transfer high-interest debt to cards with reduced APRs. A 6 to 18-month interest-free introductory period is often included in balance transfer credit card offers, while some are longer.
Cash payments for credit card bills are an option if a balance transfer is not an option for you. You can choose the Cash Advance option for this. In an emergency, a cash advance may be helpful, but there will be fees associated with it. You can use your credit card to make an ATM cash advance withdrawal. Instead of a bank withdrawal, a cash advance uses your credit card to withdraw money from your line of credit. You must pay back the money you withdrew together with any fees or interest that may have been charged.
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E-wallets allow for the payment of credit card bills. Money can be added to an electronic wallet using a credit card and then transferred to a bank account. After that, you can make a credit card payment. The previous way of taking money out of ATMs has been digitised and is used here. You must pay the fee following your e-wallet though.
