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Almost half of all Americans carry a balance on their credit card, month after month. If you’re among their ranks, you know that the combination of high prices and high credit card interest rates can make it challenging to pay that debt off in full.

Many cardholders have seen their interest rates creep up in recent years, in line with the Federal Reserve’s recent rate increases. That means interest payments are gobbling up a bigger share of credit card balances. And those credit card balances can be major. This kind of debt hit a staggering $1.12 trillion for the first quarter of 2024, according to data from the Federal Reserve Bank of New York.

But the situation isn’t hopeless, however. If you’re one of the cardholders who can’t pay credit card debt in full, here are five steps you can take to address it.

Step 1: Check your Credit Card Interest Rate

If you haven’t carried a credit card balance before, you may not be aware of what interest rate your credit card is charging. But it’s important to know exactly how much you’re getting charged so if you need to, you can budget for interest expense as well as your purchases.

The average credit card interest rate for all new card offers was 24.84% in mid-2024. (Depending on what type of credit card you have, your credit score, and your credit history, you may have a higher or lower interest rate than the average.)

With interest rates this high, it can be a real financial setback to carry a balance for an extended length of time, making only the minimum credit card payment. You may find that you are only paying interest and making little headway in paying off what you actually spent.

Recommended: What Is a Charge Card

Step 2: Understand How Your Grace Period Works

If you pay your credit card statement balance in full by the due date, a credit card grace period will usually take effect for the next billing cycle. That means you won’t owe interest on new purchases until the due date for the next billing cycle. If you pay that statement balance in full by the next due date, the grace period will continue into the next cycle, and on and on.

But, if you make only the minimum payment or a partial payment on the full statement balance by the credit card due date, you’ll get charged interest on the remaining balance and lose your grace period for the next billing cycle. This means you’ll owe interest on any purchase immediately. Even if you go back to paying the full balance, your grace period may not renew for several more cycles, depending on the specific terms of your credit card.

If you’re in a position where you can’t pay credit card bills and must move to partial payments, make sure you’re aware of the additional interest expense you’ll incur on the remaining credit card balance. Try your best to stop making new purchases with that card since interest will be charged on those purchases immediately.

Step 3: Look at Changing Your Due Date

If you’re feeling overwhelmed because many of your bills are due at the same time, talk to your credit card company about changing your due date. You might be able to move your credit card due date to a day of the month that works better for your budget, so the payments you owe are a bit more staggered.

While this switch might not help immediately to pay down credit card debt, it could offer some relief in the long run.

Recommended: How to Avoid Interest On a Credit Card

Step 4: Explore Ways to Pay Off Your Balance Faster

You may find that with higher interest rates and inflationary spending, you need a more efficient way to pay off your credit card debt, such as by refinancing credit card debt. Luckily, there are some options for how to pay off credit card debt, though keep in mind the best way to pay off credit card debt will depend on your financial specifics.

Balance transfer credit cards that offer a limited time low or sometimes even 0% interest rate can help — especially if you think you can pay the balance in full during the promotional low-rate period.

Another option you might consider is applying for a low-interest personal loan to pay off credit card debt in full. This could help you secure a lower interest rate, and by consolidating your credit card debt, you’d have fewer due dates to keep track of. Keep in mind, however, that there are pros and cons of personal loans to pay off credit card debt.

Recommended: Tips for Using a Credit Card Responsibly

Step 5: Consider Using a Budgeting Tool

If you’re finding it hard to make your credit card payments, that can be a signal it’s time to take a close look at your spending, perhaps with the help of one of the many online budgeting tools available.

Personal finance tools can help you understand just how much your cost of living has risen in recent months and make it easier to flag places you can cut back. Some can help to pinpoint fees you may be paying unwittingly or the automatic payments you’re making on your credit card that could get trimmed. Cutting these costs can then make it easier to pay off credit card debt.

The Takeaway

If you’re struggling with a credit card balance you can’t pay off, taking steps to pay off credit card debt faster and budget smarter can help. These can involve understanding your rate, changing your payment due date, and other moves.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What is a fast way to pay off credit card debt?

You might be able to use a balance-transfer credit card and pay down your debt during the 0% APR promotional period. Or you might consider securing a personal loan to pay off the debt. You would then pay off the personal loan, which could have a lower interest rate.

Can you change your credit card payment due date?

You may be able to change your payment due date. See if your card’s website or app allows this kind of shift, or contact customer service.

Do most Americans carry credit card debt?

According to recent data, approximately 49% of Americans carry credit card debt.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you work hard amassing miles and points, it’s worthwhile to know that while some credit card rewards die with you, there are issuers who allow redemptions or transfers after death.

Here’s a closer look at what happens to credit card rewards when you die, as well as what steps you can take to avoid forfeiting your rewards.

What Are Credit Card Rewards?

Credit card rewards are a type of currency that can come in the form of credit card points, miles, or cash back rewards. They’re designed to incentivize cardholders to make eligible purchases on their rewards credit card.

As you make purchases and earn various credit card rewards, you can choose to hold onto the rewards in your account until you have enough to redeem toward a high-value purpose. Each rewards program lets cardholders redeem rewards in different ways, depending on its rules. Common redemption options include statement credits, travel bookings and reservations, special experiences, merchandise, gift cards, and more.

Recommended: Tips for Using a Credit Card Responsibly

What Happens to Your Credit Card Rewards Upon Death?

Having a stockpile of credit card rewards after death might lead to a sticky situation for your surviving family. Akin to your credit card debt after death not passing on to your survivors in some states, some credit card rewards “die with you” and can’t be redeemed or transferred to your family or estate.

Conversely, some credit card issuers, like American Express, offer a limited period during which authorized trustees of your estate can redeem unused rewards. Certain programs that permit reward redemptions or transfers after death might require the outstanding account balance to be paid in full.

In other words, what happens to your credit card rewards after you pass on depends on the terms laid out in your rewards program agreement. Some rewards terms specifically state that rewards aren’t the property of the cardholder and can’t be transferred through inheritance.

Recommended: What Is the Average Credit Card Limit

What To Do With Credit Card Rewards if the Account Holder Dies

If you know that your deceased loved one amassed credit card points, miles, or cash back rewards, there are a few steps you can take to address it:

1.    Check on accounts and rewards balances. If your deceased loved one gave you access to their account before their death, log in to get an overview of their remaining rewards balances across all accounts. If you don’t have access to their accounts, proceed to the next step.

2.    Prepare paperwork. You’ll likely need to provide proof of the primary cardholder’s death, such as a copy of their death certificate. Additionally, you might need to provide the name and contact information of the authorized trustee, letter of testamentary, or other details.

3.    Contact the card issuer. You must inform the card issuer in the event of a primary cardholder’s death. Supply the necessary documentation you’ve gathered, and inquire about your options to redeem the rewards.

Generally, credit card companies offer at least one of a few options, though how a credit card works will vary by issuer. The rewards might be forfeited if they’re non-transferable or expire upon the cardholder’s death. Some credit card terms automatically convert the rewards into a statement credit, while other issuers allow rewards redemption or transfers to another existing, active account.

Ways You Can Avoid Forfeiting Your Credit Card Rewards

You’re ultimately at the mercy of a reward program’s user agreement in terms of what to do with credit card rewards after death. However, planning ahead can help you avoid relinquishing earned rewards.

Not Hoarding Your Points

To avoid facing a scenario in which your credit card rewards die with you, make an effort to redeem credit card points or miles on a rolling basis.

For example, at the end of each year, use credit card rewards to travel for less money or apply them to your account as a statement credit. Keep in mind that different redemption options have varying valuations, so look into which redemption strategy makes sense for your situation.

Choosing Cards With Favorable Death Terms

Although a particular program might offer enticing rewards — such as the chance to enjoy credit card bonuses — it might not be advantageous if the program has strict terms regarding a cardholder’s death.

American Express, for instance, has relatively lenient terms when dealing with the rewards balances of a deceased cardholder.

Recommended: How to Avoid Interest On a Credit Card

Using a Reward-Tracking Tool

If you have multiple rewards credit cards in your rotation, using a reward tracking app can help you and your surviving family organize and track your rewards. Apps like AwardWallet and MaxRewards can let you easily see all of your rewards in one view.

Naming a Beneficiary in Your Will

Although it’s not a foolproof way to avoid forfeiting your credit card rewards, adding a beneficiary to your will is a smart move. This way, if your card issuer allows rewards transfers or redemptions by authorized individuals, your beneficiary is formally named on your estate documents as your desired recipient.

The Takeaway

Since there’s no way to know when an accident or unforeseen health issue will result in your death, it’s best to be prepared. If possible, redeem earned credit card rewards in a timely manner so you can enjoy them in life. Or consider such steps as naming a beneficiary in your will or racking up rewards on a card with lenient transfer policies.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Can I transfer points from the account of a late family member?

Whether you’re allowed to transfer points from your deceased relative’s rewards credit card account depends on the card program’s rules. Some banks allow points transfers, while other programs state that points are non-transferable. Contact the card issuer’s customer support team to learn about its point transfer policy.

Can an authorized user use credit card rewards upon the death of the account owner?

It depends. Not all credit card rewards programs allow authorized users to use a primary cardholder’s earned rewards. Those that do might have restrictions on how and when rewards can be redeemed after a primary user’s death, if at all.

What happens to the miles when someone dies?

Miles earned by a deceased primary credit card rewards cardholder might be forfeited, transferred, or redeemed by the estate or surviving family, depending on the rewards program. Terms vary between card issuers, and even across travel rewards programs, so call the program’s support team to learn about its terms.

Can estates redeem points after death?

Some rewards credit cards allow estates to redeem points after the primary cardholder’s death. American Express, for example, allows estates to request points redemption by submitting a formal written request with documentation.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Whether you’re interested in switching credit cards because you found one with better rewards or one with no annual fee, it can make sense to do so. Also called a credit card product change, some banks allow you to make a switch without much consequence.

But before doing so, it’s best to understand how changing credit cards works and how to switch credit cards properly.

What Is a Credit Card Product Change?

A credit card product change is where a cardholder switches from one credit card to another credit card offered by the same bank or issuer. Because each credit card offered by an issuer is referred to as a different product, a product change is simply switching credit cards.

In theory, switching credit cards within the same bank won’t affect your credit as you’re not applying for a new credit card. Typically, your credit limit will stay the same for your new card as it was for your previous card.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

How Does a Credit Card Product Change Work?

When you make a product change, you’re not canceling a credit card. Rather, you’re either switching to an equivalent credit card, upgrading to a card with more benefits, or downgrading to a card with fewer benefits. In many cases, your bank may send you targeted offers for different credit cards, and you may be able to switch to one of these credit cards.

Once you switch credit cards, you’ll no longer be able to use the credit card you previously had. You can start using the new credit card instead. Features and benefits will most likely differ, and in some cases, so too may your credit limit.

Recommended: What Is the Average Credit Card Limit

Rules for Credit Card Product Changes

When it comes to following the credit card rules, each credit card issuer will have its own guidelines regarding product changes. For instance, some won’t allow you to change to certain credit cards, while others may allow a product change only if you’re switching to a similar type of card.

In general, though, there are some rules that are usually the same across the board.

•   For one, cardholders can’t switch from a business credit card to a personal one and vice versa, since these are considered different classes of cards and may have different credit limits.

•   Additionally, issuers typically only let you change credit cards as long as they’re within the same family of cards, as this can impact how credit cards work. However, each issuer has a different definition of what that means.

For instance, if you have a travel rewards credit card and the bank offers two other cards that use the same travel portal to redeem points, all of those cards could be considered in the same family. Or, if you have a co-branded card with an airline, other co-branded cards with that airline may also count as within the same family of cards.

Unfortunately, it’s often not easy to find information about whether you can switch your specific credit card to another. Your best bet is to call your credit card issuer and ask them directly.

Recommended: Can You Buy Crypto With a Credit Card

Pros and Cons to Switching Credit Cards

There are certainly upsides to converting credit cards rather than closing out your account and starting over. However, there are downsides to take into account as well.

Pros of Switching Credit Cards	Cons of Switching Credit Cards
Generally won’t affect your credit score if the bank doesn’t conduct a hard credit inquiry	Not easy to find definitive information online about product change rules
Possible to get more benefits with the new card you switch to	May not be able to switch to your preferred card, depending on issuer’s rules
Won’t need to submit a new credit application	May lose existing credit card rewards or points

Guide to Switching Credit Cards

Switching credit cards can be a relative straightforward process, but it does involve contacting your bank or credit card issuer. Here are some best practices to keep in mind before making the switch.

Decide Which Card You Want

You want to make sure your new card will be a good fit for you. Before making moves to change your credit card, check your bank’s website to see what other products are currently on offer. In some cases, you may find that you’ll get upgrade offers in the mail or after logging into your bank account online.

Contact Your Bank or Credit Card Issuer

You’ll also want to contact your bank to ask whether you can switch to the card you’ve decided on. If you can get the credit card you want, ask the bank what else you’ll need to do before you can officially make the switch.

You’ll also want to ask about certain features and benefits you’ll receive if you do decide to change credit cards. Specifically, make sure to ask about the following:

•   Whether your credit limit will remain the same after switching cards

•   If you need to pay off the balance before switching

•   Whether you’ll be subject to a hard credit inquiry

•   Whether you can keep existing rewards you’ve earned with your current credit card

•   What your new APR will be

•   If you’re eligible for credit card bonuses with the new card

Learning these answers will help you to make an informed decision and avoid getting caught off guard after making the switch. You may even be able to negotiate for things like bonuses or perks that you may not have gotten otherwise.

Effects of a Product Change on Your Credit Score

It’s important to determine whether switching credit cards will have an adverse effect on your credit score. When it comes to your credit utilization, as long as you’ll have the same credit limit with your new card, you should be able to maintain it. This is unlike closing a credit card, where you’ll lose that credit limit, which could result in an increased credit utilization ratio and a negative impact to your credit score.

In some cases, your card issuer may require a hard credit pull before allowing you to switch credit cards, which could temporarily ding your credit score. Your issuer may make this request for a variety of reasons, including to ensure your credit profile is still good and to determine whether to continue offering you the same amount of credit (especially if you tend to max out your card). You’ll be asked permission before the hard inquiry is conducted, so you’ll know it’s coming.

Effects of a Product Change on Your Credit Card Rewards

Depending on what card you want to switch to, you may be able to keep your existing credit card rewards. For instance, if you’re switching to a credit card that has the same rewards structure or program, you’ll probably be able to keep the points or miles you’ve earned.

However, if you’re going from a travel rewards card to a cash back program, for instance, your bank may not allow you to keep your existing rewards. That means you’ll have to use up your rewards or forfeit them, though it may still be worth speaking with a customer representative to see what they can do.

If you want to get sign-up bonuses on a credit card that you plan on switching to, check with your bank to see whether you’re eligible. Some cards don’t allow bonuses for existing customers.

The Takeaway

Requesting a credit card product change can be an easy way to switch to a new credit card without going through the full application process. Before you make any moves, however, take the time to confirm whether or not converting credit cards will impact your credit and whether you’ll be able to keep the rewards you previously earned. After all, valuable credit card rewards probably aren’t something you want to lose out on.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Does a product change reduce your credit score?

A credit card product change may affect your credit score if your issuer requires a hard credit inquiry to make the switch. This should only impact your score temporarily though.

How do I request a product change?

To switch credit cards, you’ll need to contact your bank or credit card issuer to determine whether you can switch the card you want. From there, it will inform you of the other steps you need to take.

What are the downsides of a credit card product change?

You may lose the rewards you’ve earned on your current card if you decide to switch credit cards. Your credit score could also be temporarily affected if your issuer conducts a hard credit check when you switch cards.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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An ACH credit is an electronic transfer that takes money from an account at one bank and credits it to an account at a different bank. All banks and credit unions in the U.S. are connected electronically via a system known as the Automated Clearing House (ACH). This allows for easier movement of money between accounts at different financial institutions.

One of the most popular forms of ACH credit is the direct deposit of your paycheck from your employer. However, there are other times when you may receive or send an ACH credit.

Here’s what you need to know about ACH credits, including their meaning and how these transactions work.

What Are ACH Credit Payments?

Automated Clearing House (ACH) credit payments occur when someone instructs the ACH network to send or “push” money from an account they own at one bank to an account at a different bank, either owned by them or someone else. One common reason why you might get ACH credits to your bank account balance is if you signed up for direct deposit at work. In this case, your employer pushes money from their bank account (usually via a processing partner) to your checking or savings account each time you get paid.

You may also see an ACH credit if you receive a payment from a government agency, or if a friend sends you money using a peer-to-peer transfer service like Venmo or CashApp.

You’ve likely also sent many ACH credits, perhaps without realizing it. When you set up payment through your bank or credit union to make a one-time bill payment or send money to a friend through a payment app, this would be processed as an ACH credit. In both cases, you are pushing money out of your account and into the other party’s account.

How Does ACH Credit Work?

One way to think about an ACH credit is that it is the digital equivalent of someone writing a paper check. Instead of filling out a check, however, the sender instructs their bank to send money directly into the recipient’s account via the ACH system. To send money via ACH credit, you simply need the recipient’s name, bank account number, routing number, and basic transaction details. The process can take anywhere from a few hours to two business days.

Behind the scenes, your bank batches all of its ACH transfer requests together and sends them out at regular times throughout the day to a clearinghouse that verifies the transfers. The clearinghouse then sends each transfer to the recipient’s financial institution. The National Automated Clearing House Association (NACHA) oversees the ACH network.

What Is an ACH Credit Refund?

An ACH refund (or return) is an electronic transaction that’s sent back to the original sender by the recipient’s bank. This could happen if the recipient’s bank can’t process the transaction due to insufficient funds, an invalid account number, a closed account, among other reasons.

Once the transaction’s been returned, the sender’s bank will notify the original payer and may charge a fee for the return. The sender’s bank may also try to resend the payment, or contact the payee directly in order to resolve the issue.

Recommended: How to Stop or Reverse ACH Payments

What’s the Difference Between an ACH Credit and an ACH Debit?

An ACH credit and ACH debit are two different types of transactions that are processed through the ACH network. The only difference between them is who initiates the transaction.
In an ACH credit transaction, the originator requests to transfer money from their account to the recipient’s account. This is often referred to as a “push” payment.

In an ACH debit transaction, the originator requests to withdraw money from another party’s account and have it transferred to their own account. This is ypically called a “pull” payment.

If you have a service provider you make regular payments to, they might ask you to set up ACH debits to make processing the payment easier on both ends. With a recurring ACH debit, you don’t need to remember to make a payment each month, and the receiver doesn’t need to process manual payments — they automatically pull the money from your account each month.

With ACH credits vs. debits, there is also a difference in transfer speed. A bank can choose to have ACH credits processed and delivered within the same day, or in one to two business days. ACH debit transactions, on the other hand, must be processed by the next business day.

Fees Associated With ACH Credit Transactions

There are fees associated with ACH transactions that are paid to NACHA by the banks involved in the transaction. Banks generally pay both an annual fee to participate in the ACH network, as well as a tiny fee per transaction. There may be an additional fee required for faster or same-day ACH transactions.

These ACH fees may or may not be passed down from the bank to the actual account holder. Check with your bank to see if they charge a fee for sending or receiving an ACH debit or ACH credit transaction.

Future of ACH Credit

The ACH Network has grown in popularity since it was officially established in the mid-1970s, and shows no signs of slowing down. NACHA, its participating banks, and the government continue to work together to make sure that the ACH network remains safe and stable. Other fintech companies are also working to innovate concerning the future of electronic payments.

The Takeaway

The Automated Clearing House (ACH) is a network of banks that allow electronic transactions to be sent to and from accounts. An ACH credit allows you to “push” money online from an account you own at one bank to an account at another bank, either owned by you or someone else.

ACH credits are push transactions. This means the person making the payment originates the transaction. An ACH debit, by contrast, is a pull transaction, and is initiated by the party receiving the money.

There are a variety of reasons why you might see an ACH credit on your account, but one of the most common is a direct deposit or payroll entry from your employer.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

What is an ACH credit and how does it work?

An Automated Clearing House (ACH) credit transaction is when someone instructs the ACH network to send money from their account to someone else’s.

A common example of an ACH credit is direct deposit of your paycheck. In this case, your employer pushes money out of their bank account and into your bank account using the ACH network. ACH credits are also used for bill payments and peer-to-peer payments.

What does the future look like for ACH credits?

The National Automated Clearing House Association (NACHA), the organization that oversees the ACH network, is working with the government and other stakeholders to ensure that the ACH network remains safe, secure, and stable. While some of the behind-the-scenes details may change, it’s likely that inter-bank credits and debits will continue well into the future.

Is an ACH credit the stimulus check?

An Automated Clearing House (ACH) credit transaction occurs when an individual or organization instructs the ACH network to send money from their account to someone else’s. There are a variety of reasons why you might see an ACH credit transaction on your account, including direct deposit of your paycheck and direct payments from the government, such as a stimulus check.

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¹SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by banks in the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms. See list of participating banks at SoFi.com/banking/fdic/receivingbanks.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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While there are many different methods for paying your credit card, it is not always straightforward to pay a credit card from another bank. This can be problematic, since credit cards are becoming more and more prevalent as many people’s preferred method of payment.

If you choose to pay your credit card from another bank via check or an automated transfer, it should be fairly simple to do. However, you may not be able to pay a credit card directly via a debit or credit card issued by another bank. You might wind up in the latter case using a cash advance, which will probably involve higher costs.

Read on to learn more about how to pay a credit card from another bank.

How to Pay Off a Credit Card With Another Bank

The easiest way to pay off a credit card from another bank is with a check, bill pay, or ACH transfer from your bank. While writing checks has become less popular, many banks offer a bill pay service that would allow you to have your bank send a check to pay your credit card bill.

If your credit card issuer allows it, you may also be able to enter your account and routing numbers on your online card account and have your payment directly drafted from your bank account.

When Should I Pay My Credit Card Bill?

Paying your credit card bill regularly is an important factor used in calculating your credit score. So it’s a good idea to either set up automatic payments that will pay your bill each month or to have a system that makes sure you complete those payments each month.

It can be extra important to pay off a large credit card bill, since the amount of your available credit that you’ve used is another factor that makes up your credit score. Your credit utilization ratio is how much you are carrying as a balance vs. your credit limit. It’s expressed as a percentage, and you’ll want to keep it as low as possible. Lenders typically like to see that figure as no more than 30% (10% is even better) when reviewing your finances.

Why You Should Pay Your Credit Card Bill on Time

One of the factors that is used to calculate your credit score is your payment history, and late payments can have a negative impact on your credit score. The way that most credit card payments work is that you often do have a grace period after the due date before your payment is reported as “late.” Still, you should do your best to pay your credit card bill on time, each and every month.

On-time payments are the single largest contributing factor to your credit score at 35%.

Why You Should Pay Your Credit Card Bill Early

In some cases, it can make sense to pay your credit card bill early, even before it is officially due. The 15/3 credit card payment method is one strategy that encourages users to make a second payment to their credit card account in the middle of the month. This can help to keep your credit card utilization ratio low, which can help build your credit score.

How Can I Pay My Credit Card Bill?

You have several different options for paying your credit card bill. Here are a few of the most common ways to pay your bill.

Online Payments

Probably the easiest way to pay your credit card bill is with an online payment.

•   Most issuers allow you to set up automated credit card payments by entering in your routing and account numbers in your online credit card account.

•   You may also be able to use your bank’s bill pay feature to pay your credit card bill online.

•   You may be able to use a debit card to pay a credit card in some cases. However, most credit card issuers are likely to prefer drawing directly from your bank account vs. deducting funds via a debit card.

Over the Phone

Many credit card issuers allow you to make credit card payments over the phone, using a touch tone keypad. You’ll need to have your bank’s account and routing numbers to pay over the phone.

With Cash

If you’re looking to pay using cash, you may have a more difficult time. One option might be to use your cash to buy a money order which you can mail to your credit card company to pay your bill. Or, your credit card company may have relationships that allow you to pay your bill at the customer service desk of certain retailers.

Can You Pay a Credit Card With Another Credit Card?

You generally cannot directly pay a credit card with another credit card. If you’re looking to use your available credit on one card to pay the bill of another card, you generally have two options — a balance transfer or a cash advance. Both of these options typically come with fees, so they should be used as a method of last resort in most cases.

Should You Carry a Balance on Your Credit Card?

While there may be some times that you will need to carry a balance on your credit card, you should avoid it when possible. Carrying a balance on your credit card raises your utilization rate, which generally has a negative impact on your credit score. That’s why, when possible, you want to know how to pay off a credit card from another bank every month and not carry a balance.

Another note: Remember that you’ll also be charged interest on any outstanding balance on your card. Credit card debt is typically considered high-interest debt, with rates currently topping 20% on average.

When Do You Receive Your Credit Card Bill?

With many credit card issuers, you receive a monthly statement around the same time of the month. Your credit card payment due date may be three weeks or more after that, and you may have a grace period after that before your payment is considered officially late.

If you don’t want to have to worry about remembering when you receive your statement or when your payment is due, you might consider setting up automatic payments.

Tips for Paying Credit Card Bills

One of the best tips for paying credit card bills is to set up automatic payments, or what may be called autopay. You can do that either through your bank or by entering your bank’s information in your credit card online account. Setting up automatic payments eliminates the chances that you will forget about making your payment and end up being charged interest, late fees, or both.

Recommended: Guide to Paying a Credit Card with a Debit Card

The Takeaway

The easiest way to pay a credit card from another bank is by using your bank’s account and/or routing numbers to transfer funds. You can either set up payments on your online credit card account using that account information or use your bank’s bill pay service to pay a credit card from another bank. There usually is not a way to pay a credit card directly with a debit card or another credit card, and the indirect methods may trigger fees.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How do I pay my credit card bill with another bank credit card?

There is generally not a way to directly pay a credit card bill with another bank credit card. You can use a balance transfer credit card to transfer the balance of one credit card to another, but there are often fees associated with this. You could take a cash advance to pay a different credit card, but you’ll usually be charged fees and interest.

Can you pay a credit card online from a different bank?

Yes, it is often possible to pay a credit card online with the information from a different bank. Most credit card issuers allow you to set up payment information either over the phone or through your online account using your bank account’s routing number and your account number.

Can I pay my credit card bill with another bank debit card?

No, it is not generally possible to pay a credit card with a debit card, at least not directly. To pay a credit card from a different bank, you typically need to use your bank account details to set up a payment in your online credit card account, if your issuer supports that.

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Photo credit: iStock/VioletaStoimenova

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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