Technically, you cannot pay a Capital One credit card with another credit card. In other words, you cannot enter a credit card account number to pay your bill the same way you would with your bank account number. There are a couple of ways, however, where you can indirectly use a credit card to pay your Capital One credit card bill: Cash Advances and Balance Transfers.
A cash advance is when you use your credit card to withdraw money at an ATM, just like with a debit card. You can then use those funds to pay your Capital One credit card. You can also request a convenience check, which looks like a regular check that you can deposit to your bank account. Once the check clears, the amount of the check is charged to your credit card.
Neither approach is a good idea. For starters, cash advances are an expensive transaction. You’ll be charged at fee of 3% to 5% of the transaction amount, along with any ATM user fees. A convenience check would spare you the ATM fee, but it is still considered a cash advance, and all other fees and interest rates would apply.
A cash advance is also subject to a portion of your credit limit, usually 20%. That’s 20% of your total credit limit, so if you have other charges on your card, that will reduce your cash advance limit even further.
Where the real expense kicks in is with the high interest rates. Expect to pay a higher rate than what you’re currently paying. The interest starts to accrue as soon as the transaction occurs, and is not waived by a grace period or a 0%. If you don’t pay off the entire cash advance balance, a new wave of interest – at the Cash Advance rate – will pile on top of current balance, along with any previously accrued interest.
A transfer balance is the more sound option, as long as you pay attention to the terms. Ideally, would want to transfer your Capital One credit card balance to a balance transfer card with an you introductory 0% interest rate. You’ll pay no interest on the amount transferred for a specified number of months, but you’ll likely pay a transfer fee of 3% to 5% of the total transaction. You cannot, however, transfer a balance from one Capital One credit card to another.
The amount you can transfer is capped by your total credit limit, so how much available credit your have will determine how much you’ll be able to transfer. Be sure to factor the transfer fee into your balance transfer amount. Also, using up too much of your credit limit will raise your debt-to-credit ratio and will negatively affect your credit score.
If you’re transferring a balance to a card with a 0% interest rate, make sure you’re aware of when the 0% rate expires and what the new interest rate will be. If you don’t pay off the entire balance transfer by the end of the introductory period, any unpaid balance will be charged at the regular interest rate.
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