Will a Bank Take a Credit Card to Pay Off Debt?

Many banks accept credit cards as payment on bank loans.
i Comstock Images/Comstock/Getty Images

There will come a time when the “payment due” notice will arrive from your bank. When it does you’ll need to decide how to pay. Most of the time the only option is to pay with your checking account, but sometimes a credit card will be accepted. Using a credit card to pay bank debt is allowed only under specific circumstances, but it can be beneficial to pay this way in some cases. Understanding exactly when you can use your credit card to make a payment to your bank will help you make the most of your money.

Bank Loans

Bank loans are available for many reasons. You may have a mortgage, a home equity loan, or a home equity line of credit through a bank. You may have a car, boat, camper, RV or motorcycle loan through a bank. You may have a loan to pay off other debt or for education. In many cases you will be able to pay on your bank loan using a credit card. The availability of this option varies by financial institution.

Credit Card Debt

Credit card debt is always secured through the card issuer’s bank. This type of bank loan is a little different, though. Unlike a traditional bank loan, a credit card cannot be paid with another credit card unless you do a balance transfer. As you are setting up your payment information with your credit card you’ll notice the only information it asks for is checking account numbers. Credit cards issuers generally do not allow payments using other credit cards.

Balance Transfers

One exception is a balance transfer. This option allows you to move partial or entire balances from one credit card to another, essentially paying off one credit card with another. It is a wise choice if you are able to get a lower interest rate or to consolidate several payments into one. You can also transfer balances for cars, furniture and more from a bank to a credit card.


Due to the differences in every bank’s operations it is imperative to research your bank's policy on the use of a credit card as a form of payment. Knowing the options that are open to you will enable you to make the wisest choice. Educate yourself as to your financial institution’s requirements before trying to pay your debt with a credit card.

the nest