Pay a credit card with a credit card?? Will this work?

answeraway: Pay a credit card with a credit card?? Will this work?
Let’s say I have two credit cards credit card A and credit card B, what if I set up automatic payment on credit card A and use credit card B to pay the minimum payment amount on the 15th of every month, and than I setup credit card B on automatic payment and I use credit card A to make payment on the 20th of every month, it’ll be a payment loop and I win building credit automaticly!!

Answers and Views:

Answer by Reverend G
This sounds like my wifes logic. Do yourself a favor and keep your life simple. One card, WRITE A CHECK for the balance every month and enjoy a simple care free life.

Answer by StephenWeinstein
No.

1. When you use credit card to pay another, it is a cash advance or a balance transfer, not a purchase, so you are charged interest immediately, with no grace period.

2. Because of the finance charges, your balances will eventually exceed your credit limits. This will hurt (lower) your credit rating and result in additional fees from one or both credit card companies. Also, the credit card company where you exceed the limit may refuse to allow any more payments from that card, so the payments to the other card will not be processed, so the card that you are trying to pay will not be paid on time.

Answer by Michael T
Can’t be done unless you do it with a cash withdrawal which will cost you about 5% of the amount withdrawn each time and you would normally pay a higher interest rate on the amount withdrawn.

Since a normal purchase costs the merchant (one of the banks) about 2% of the amount, it would be crazy for the banks to allow you to use a credit card for such a purpose since they would be losing money every time you did it.

Banks now even charge about 5% for 0% balance transfers for the same reason.

Answer by knittingbear
As a former credit card collection agent, I can tell you that yes it can be done but is a really stupid way to do things. With finance charges being added on for every charge, you balance will build a lot faster than your credit history, digging you deeper than ever in debt. My suggestion would be to make several small purchases a month & pay them off completely at the end of the month (or when your bill is due). This will build up your credit just as fast and save you the finance charges. You can set up your bank account to automatically pay the bills are you listed above, however.

I did that with a set amount each month which always exceeded what I had charged. My $ 1000 limit card ended up with nearly $ 4000 in credit on it after a couple years. At that point, I just cashed it out & got another card with a smaller limit so I wouldn’t have the temptation and put a down payment on a car with the money I had “saved” this way.