6 Easy Tips for Credit Card to Credit Card Payment

Data sourced from the Reserve bank of India indicates that the overall transaction value of credit card payments increased by a substantial value during the financial year of 2018-19 in comparison to its previous fiscal. Credit card users in India spent around Rs.6 lakh crore, which is a 30% increase than the Rs. 4.6 lakh crore spent by users with credit cards.

Such statistics also transcend to increase in credit card bill payments. Individuals sort to several options for bill payment. One of the unconventional ones is a credit card to credit card payment.

What do you mean by credit card to credit card payment?

Credit card to credit card payment means paying your credit card bills with the help of another credit card. This method requires an indirect approach as there is no direct way of dealing with your credit card bills with a different credit card. An accurate example of such an indirect method of a credit card to credit card payment is making use of the balance transfer facility of credit cards.

Why opt for a credit card balance transfer?

If you possess a significant amount of debt on your credit card and a substantial interest payable amount, financial experts advise users to opt for a credit card balance transfer in such a situation. It is a form of a credit card to credit card payment where the pending dues are transferred to another financial institution where the rate of interest is comparatively lower.

In such a way, the financial troubles of dealing with the substantial interest amount on your credit card bill payments are reduced significantly. However, there are several other factors to consider while opting for a credit card balance transfer, such as processing fees, card benefits, etc.

Tips for a credit card to credit card payment

You should not rush on to a credit balance transfer to lower your interest payable on your credit card bill payments before consulting the following 6 tips, which are –

  • Learn about the interest rates beforehand

During a credit card balance transfer, the interest rate on the transferred balance will be different than the interest applied on purchases, cash advances, etc. However, this varies across card issuing companies. So, before opting for a credit balance transfer, it is mandatory to check the interest charge calculation of your new credit card issuer.

  • Make sure to factor in the ‘go-to’ rate of your credit card

The ‘go-to’ rate is the standard interest rate which is applied to any unpaid portion of your credit card balance transfer amount after the promotional or discount period (if any) expires. So, it is advised to be prepared and be aware of the minimum credit card due amount and interest charges increasing due to a comparatively higher ‘go-to’ rate.

  • Evaluate the processing charges of the credit card balance transfer

The fee charged for a credit card to credit card payment varies across issuing companies. In several cases, a situation may arise that the high processing fees would create a dent in your savings in the long run, even if the offered interest rate were substantially lower. So, make sure to check the processing charges of your credit card balance transfer.

  • Opt for a credit card which has a long promotional period

Several credit card companies offer users with a longer promotional period where the interest charges are quite low. This helps for those who are looking for a balance transfer to mitigate their debt if they have a high outstanding interest payable amount on their credit card. This facility is not only crucial for balance transfer but regular credit card bill payment as well.

  • Make sure not to incur more debt on the old credit card

After completing the credit card balance transfer, do keep your old credit card active and make sure not to incur further debt on the same.

  • Maintain a high credit score

If you maintain a high credit score of 750 or above, it makes you more eligible to avail a balance transfer credit card.

A high credit score also makes you more eligible for premium cards like the Bajaj Finserv RBL Bank SuperCard. This card brings industry-first features like zero interest cash withdrawal from ATMs for up to 50 days and interest-free emergency personnel for up to 90 days.

So, credit card to credit card payment is an important facility exercised by several users to lower their debt and reduce their monetary worries. Make sure to know all the important things before you apply for a credit card.

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