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Can You Pay Off A Debit Card with A Credit Card?
July 1, 2025
Quick Answer
Since a debit card draws directly from your bank account and doesn't carry a balance, the concept of "paying it off" with a credit card is not applicable.
Should You Pay Off A Debit Card With A Credit Card?
Let's examine the potential upsides and downsides of this financial strategy.
Benefits
- Using a credit card can provide immediate funds to cover a negative bank balance, potentially avoiding daily overdraft fees from your bank.
- It offers a quick way to address a short-term cash shortage without needing to apply for a separate loan.
Costs
- Most credit card issuers charge an upfront cash advance fee, typically a percentage of the amount withdrawn.
- Cash advances usually come with a higher annual percentage rate (APR) than standard purchases.
- Interest on a cash advance typically begins to accrue on the day of the transaction, eliminating the usual grace period.
How to Pay Off A Debit Card With A Credit Card
Using a credit card to cover debit transactions is an unconventional financial strategy. However, when done carefully, it can help manage short-term cash flow or consolidate payments. Here’s how.
- Assess Your Financial Situation: Before proceeding, understand why you need to cover a debit balance. This method can be costly, so evaluate if it’s for an emergency or convenience and weigh the associated fees and interest rates.
- Choose the Right Card: Select a credit card with the most favorable terms for your situation, such as a low introductory APR on purchases or cash advances. To find a card that fits your needs, you can use a comparison resource like Kudo's explore cards tool.
- Select a Transfer Method: The most direct way is a cash advance, where you withdraw funds from your credit card and deposit them into your checking account. Be aware that cash advances typically come with high fees and immediate interest accrual.
- Create a Repayment Plan: You’ve essentially converted a debit transaction into high-interest credit card debt. Immediately create a budget and a firm plan to pay off the credit card balance as quickly as possible to avoid long-term interest charges.
Impact On Your Credit Score
Using a credit card to pay off a debit card can have several effects on your credit score. Here are a few key factors to consider before you proceed:
- Credit Utilization Ratio. Using a credit card increases your balance, which raises your credit utilization ratio. Lenders prefer a lower ratio, so a significant increase can negatively affect your score.
- Debt Transfer. This action transfers debt to a credit account but doesn't eliminate the original amount owed. You are essentially moving your debt, which may now accrue interest on the credit card.
- New Credit Inquiry. If you open a new credit card for this purpose, the application results in a hard inquiry. This can cause a temporary, minor dip in your credit score for a few months.
Alternative Ways To Pay Off A Debit Card
Direct Account Funding
A straightforward method is to manually transfer funds into your checking account. By regularly moving money from a savings account or another income source, you can maintain a healthy balance. This proactive approach ensures sufficient funds are always available for your debit card purchases, preventing overdrafts and the negative balances that can accompany them. It’s a hands-on way to manage your account liquidity directly.
Using Physical Cash
For certain expenses, reverting to physical cash can be an effective strategy. Withdrawing a predetermined amount of cash for discretionary spending, such as dining out or entertainment, creates a tangible budget. Once the cash is gone, spending stops. This method completely sidesteps the risk of overdrawing your account with the debit card, offering a simple, non-digital way to control spending.
Choose the Right Card to Pay Off A Debit Card
If you're relying on your debit card, you're likely missing out on valuable rewards and perks. Making the switch to the right credit card allows you to maximize rewards and minimize fees on spending you're already doing. With thousands of options available, Kudos uses a personalized, data-driven approach to help you find your credit card match.
For those who want to get more out of their cards, Kudos is the ultimate free tool to use when you shop online. We are also offering $20 back after your first qualifying purchase—simply sign-up for free with code “GET20” and make a purchase at a Boost merchant.
Frequently Asked Questions
What are the risks of paying a debit card with a credit card?
You may face high cash advance fees and interest rates, which could significantly increase your overall debt burden.
Are there better alternatives to this method?
Yes, consider personal loans, balance transfer cards, or debt consolidation plans, which often offer more favorable terms.
How does this affect my credit score?
Using a credit card can increase your credit utilization ratio, which may temporarily lower your credit score.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
