Can I Pay Off My Fiance's Credit Card With My Credit Card?
Transferring a high interest balance onto a low interest credit card can save your fiancé in monthly fees as well as interest charges. To clear your fiancé's debt, you'll need to either pay it off using your credit card or transfer the balance it to your credit card. Either way, it's wise to consider all your options and understand all the risks before paying off your fiancé's credit card debt.
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Identification
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The debt owed on a credit card is comprised of transaction balances as well as credit card fees. Unless a credit card is subject to a 0 percent annual percentage rate (APR), a monthly finance charge is added to the card holder's end-of-billing-cycle transaction balance. A billing cycle typically runs from 29 days to 31 days.
Considerations
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APR typically ranges from 0 to 24 percent; however, rates as high as 78.9 percent have been noted. A credit card with a balance of $1,000 and an interest rate of 9 percent will accumulate $9 in interest over the course of one month. Consumers who pay off a fiancé's balance before the end of a billing cycle must calculate the total owed after interest has been applied. If making a payment by phone, ask the customer service agent to estimate the expected interest owed for the final billing cycle.
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Cash Withdrawals
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Consumers can make a credit card withdrawal by taking a credit card to an ATM and requesting a specific dollar amount. While a consumer can use the available cash to then pay off a fiancé's credit card debt, money withdrawn from a credit card is not eligible for a grace period, which means there is no period in which the money is not subject to interest.
Balance Transfers
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Balance transfers allow one consumer to transfer the balance owed by another onto his own credit card. Apply for a no-fee balance transfer card, if you do not have one, and take advantage of zero transfer charges. Unless your credit card qualifies for a 0 percent annual percentage rate, the money transferred onto your card will be subject to interest. When making a balance transfer, choose a low interest card, so you save in interest fees.
Transfer Steps
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Some credit card issuers allow account holders to make a balance transfer request by Internet using the company's secure site. Others require an account holder to use a printed form which, typically, is provided on the back of a monthly payment slip or available online. Provide the credit card issuer with your fiancé's full legal name and 16-digit credit card number and then transfer all or a percentage of the balance owed. If transfer charges apply, make one transfer and save on additional charges, which can reach as high as 3 percent per transaction.
Warning
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When using a credit card to pay off credit card debt, always contact your credit card company in advance and ask about transaction fees and interest charges.
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References
- Photo Credit credit card detail image by gajatz from Fotolia.com
