Paying off one credit card with another to earn points?

[PurpleBunny89]

Does anyone do this? I was looking into all the points cards out there and which ones would be most beneficial for our family spending. I had basically picked one but thought that I should probably call TD and see what they have avaliable tomorrow and then pick one. But that got me thinking why can't I have both? Or three? And just pay each one off with the other basically and then get all the rewards?

Advice please?

[sweet sparrow]

As far as I know, there was only one that you could use to pay off other credit cards (at least without calling in). I think they took that privilege away within a few months and it now specifies in the fine print that comes with the physical card. You'd pretty much find out after your credit rating took a hit and you were signed up (unless you've heard that they're continuing to allow it).

Then there's the whole other issue of multiple dings to your credit history. Bit less if it were possible if you got a CC, your DH got a CC, and you each paid off the other's, or however it worked out best. It may not work in your favour if you need to borrow money in a pinch though, like if you had to replace a car quickly and needed financing, or you needed to take out a loan/mortgage.

Plus, we just got our insurance renewal forms. It claims they use our credit history to determine our rate. I'm really unimpressed, but yet another reason I'm not ready to muck about with our credit. I think it's one of those things that are easy to wreck and hard to fix.

I don't think it's as easy as it sounds, but then, I've honestly never tried.

[Darth Penguin]

Using a CC to pay off another CC only works if you actually pay them off, rather than trading the balance around and around.

[PurpleBunny89]

I think there might of been some misunderstanding. I would be using one card primarily to swipe and pay for purchases. Then I would pay that card off with another lets say and and then pay the second card off completely with cash. So therefore I would be getting the rewards from both cards every month and still have everything paid off.

[marmaduke]

Normally you do not get rewards on your credit cards from cash advances, balance transfers or cheques. Make sure the credit card gives rewards on the transactions you are contemplating.

[PurpleBunny89]

Normally you do not get rewards on your credit cards from cash advances, balance transfers or cheques. Make sure the credit card gives rewards on the transactions you are contemplating.

Okay, this is what I was wondering.

Chances are I will just go with the WM card and nothing else at all. Since we shop at WM most it would be the most beneficial card out there.

EDIT to add: I've never really seen the excitment about having multiple credit cards unless you're someone like on those shows where you get one after the other after the other only to max them out right away.

I figure if I pay my card off every month in full why would I need another card? I'm still going to be spending the same amount of money every month.

[Darth Penguin]

I think there might of been some misunderstanding. I would be using one card primarily to swipe and pay for purchases. Then I would pay that card off with another lets say and and then pay the second card off completely with cash. So therefore I would be getting the rewards from both cards every month and still have everything paid off.

okay...I misunderstood..sorry!

[PurpleBunny89]

okay...I misunderstood..sorry!

No problem. If I can help it I don't want to ever not be able to pay my card in full each month.

[blueeyetea]

No problem. If I can help it I don't want to ever not be able to pay my card in full each month.

But the problem is that the instant gratification you get from using the credit card dissociates you from the reality of paying the bill a month down the line. It's very easy to think, "I'll buy it now and figure out how to pay for it later" If you pay cash for what you need,, the experience is quite different because you see the direct link between your purchase and the balance of your bank account.

That's a reason why I'm leary of incentives offered by credit card company these days. It's just another strategy to hook people. Nothing in life if free, especially when it comes to money.

[PurpleBunny89]

But the problem is that the instant gratification you get from using the credit card dissociates you from the reality of paying the bill a month down the line. It's very easy to think, "I'll buy it now and figure out how to pay for it later" If you pay cash for what you need,, the experience is quite different because you see the direct link between your purchase and the balance of your bank account.

That's a reason why I'm leary of incentives offered by credit card company these days. It's just another strategy to hook people. Nothing in life if free, especially when it comes to money.

I disagree completely with this. I think that maybe if someone has their head stuck in the sand and refuses to deal with reality then yes I can see your point of view.

I've never had an issue with credit cards. I've had mine for about 2 years now and its always been paid off in full every month.

I also don't get "instant gratification" with using my CC. My CC is treated the same as if I were to use my debit card and the money was instantly taken from my account, because either way CC or debit the money will be given away whether it be instantly or at the end of the month.

I'm also one of those people are bad bad bad with cash. I find I spend more when I use cash and I get disilusioned as to it. I can't quite explain it but I feel as if when I pay with cash it doesn't quite mean anything to me. Or maybe its the whole "well its only $23" and then the next time "its only $49" and thus forgetting about originally spending the $23. With a CC I can track it easier because at the end of the month when you go to pay off a large sum its like jeez what in the heck did I buy this month?! Whereas with cash people make the argument well when it runs out it runs out but I disagree because I can just go to the machine and get more and then promptly forget about the fact that I did the same thing a week later.

I think we all find what works for us in the end and I am definitely more of a CC user then a cash person.

[blueeyetea]

when I pay with cash it doesn't quite mean anything to me. Or maybe its the whole "well its only $23" and then the next time "its only $49" and thus forgetting about originally spending the $23. With a CC I can track it easier because at the end of the month when you go to pay off a large sum its like jeez what in the heck did I buy this month?! .

I can see your point from a record keeping point of view that it packs a punch when you receive your CC statement. But wouldn't you get the same result if you tracked all your expenses, whether paid by cash or CC, and tallied them at the end of the month?

[sweet sparrow]

You'd get the same result, but it would be more labour intensive. With a CC, it tells you where you spent it and the date, so I never have to carry around a pen and paper at all times. Some CCs even break out your spending so you know what percentage is for groceries, transportation, education, medical, etc., depending on how the business is registered. That's rarely accurate though.

[blueeyetea]

You'd get the same result, but it would be more labour intensive.

Well, maybe a bit more, but my system is as simple as putting the receipts in my wallet and I add them up once a week in a spreadsheet. Personally, I can't go through a week without needing cash for something, which can run the gamut from paying for bus fare to buying a magazine, to coffee at work. Why should I forget about them just because they don't show up on a credit card statement? Ignoring one while favouring the other is the real danger for me.

[PurpleBunny89]

I can see your point from a record keeping point of view that it packs a punch when you receive your CC statement. But wouldn't you get the same result if you tracked all your expenses, whether paid by cash or CC, and tallied them at the end of the month?

You would get them same result but its there immediate effect cash has. If I have cash I tend to use it more then I would my CC. For example I went to the Craft show with my aunt and her cousin on friday. I didn't have any cash. My aunt had to pay for my admission and I paid her back later. I walked out that night with nothing bought (which is how I wanted it due to money being tight) but had I of had cash on me I would of purchased a lot of items because when I have cash I am more tempted to spend it. Again, its kind of hard to explain.

Also, cash is a lot easier for me to lose the my credit card. Cash is also a lot more harder to keep track of then my CC, especially the larger the amount.

[Sunraven]

I don't think that you are allowed to pay for a credit card with another credit card, if you were to do this it would count as a cash advance, and you would start paying interest immediately on the amount.

A quick call to your cc company would confirm or deny this, I could be wrong but I am pretty sure that's how it works.

That's why the CT MC was so exciting when it first came out, they allowed that (they have since closed that loophole).