The realms of Buy Now, Pay Later (BNPL) and Credit Cards seem to be colliding. Long-term BNPL installment plans with hefty interest rates are now available. On the credit card front, it’s now possible to pay for certain purchases with no-interest installment plans.
My Chase Plan is an example of this credit card/BNPL hybrid. Chase calls it a ‘BNPL feature’ but can it really be considered as Buy Now, Pay Later?
Buy Now, Pay Later: Pay in Four
The most well-known type of BNPL loan is the Pay in 4 financing option. This is where it all started after all (in terms of the meteoric rise of BNPL).
Pay in 4 is a point-of-sale financing option that requires you to pay 25% of the product’s price upfront, and then you’ll pay the remaining balance in three interest-free installments.
This is what Chase and other banks are trying to emulate with their ‘BNPL features.’ So how does My Chase Plan compare to the traditional Pay in 4 BNPL financing?
Pay in 4 BNPL Checklist
1. 0% Interest
My Chase Plan seems to fit the bill in this case. However, upon further inspection, you’ll find that the monthly fee that’s charged in this plan is still based on your credit card’s APR.
So while My Chase Plan is 0% interest, the monthly fee it charges is essentially just a different way of calculating your APR with a couple of caveats that we’ll discuss later.
2. Point-of-Sale Availability
My Chase Plan isn’t available at the point of sale. You’re going to have to purchase something using your Chase Credit Card and then set up your plan on Chase.com or in the Chase App.
3. Paid in Four Installments
My Chase Plan durations range from 3 to 24 months, based on the purchase amount, your creditworthiness, and your account history.
So it technically can be paid in four installments. However, you don’t need to pay 25% of the price upfront which, surprisingly, can be viewed as an advantage or a disadvantage.
On one hand, it’s great that you don’t have to pay anything upfront AND you can earn points on your purchase. On the other hand, purchases financed by ‘My Chase Plan’ still increase your card’s credit utilization.
4. Easy Application Process
BNPL is available to almost everyone since most BNPL providers don’t do hard credit pulls and some don’t even do soft checks.
After all, the overwhelming success of most BNPL providers can be attributed to their capacity to underwrite almost anything.
‘My Chase Plan’ on the other hand is a feature of Chase Credit Cards. This means that you’re going to have to apply and be approved for a Chase Credit Card of your choice. And this is a significantly more difficult process than just signing up for a BNPL service.
Can ‘My Chase Plan’ be Categorized as BNPL?
Not really, at least if we’re comparing it to the traditional Pay in 4 financing option.
And even if we compare it to long-term BNPL financing, the only similarity between them is that they’re both installment plans. Not to mention that long-term BNPL plans charge users interest rates in the form of APR while My Chase Plan charges a fixed monthly fee.
So ironically, long-term BNPL plans are more similar to traditional credit card transactions in the way that they display their charges. But at the end of the day, whether it’s displayed as APR or a fixed monthly fee, the rates are still in the same ballpark.
How is the Fixed Monthly Fee of ‘My Chase Plan’ Calculated?
According to Chase’s Pricing and Terms page, My Chase Plan’s monthly Fee is set at 1.72% of the price of the transaction that you finance. However, this fee is based on the prime rate (8.50% as of the time of writing) and fluctuates in the same way as the variable APR of credit cards.
In fact, the ‘My Chase Plan’s Fee is calculated at the time that the plan is created. The actual fee is based on the transaction amount, number of installments, and other undisclosed factors.
It’s also important to note that the options presented to you in terms of the number of installments vary depending on the purchase and your credit history.
Once you have created a plan though, the monthly fee will be fixed until My Chase Plan is paid in full. This means that the best strategy is to choose “Calculate a My Chase Plan” on the web or app dashboard for each of your eligible accounts to see if any of them have better rates than your current APR.
Do I Have to Pay a Fixed Monthly Fee on a 0% Intro APR Card?
No, your My Chase Plan monthly fee will be set at 0 if you’re still in the introductory period of your 0% Intro APR credit card. In cases such as these, My Chase Plan is actually an amazing alternative to BNPL services.
Which Credit Cards Are Eligible for My Chase Plan?
Here’s a list of all Chase Credit Cards that are eligible for My Chase Plan:
- Chase Freedom
- Chase Freedom Unlimited
- Chase Freedom Flex
- Chase Freedom Student
- Chase Sapphire
- Chase Sapphire Preferred
- Chase Sapphire Reserve
- Chase Slate
- Chase Slate Edge
- Select Chase Hotel & Airline cards
Purchases that are NOT Eligible for My Chase Plan
Generally, most transactions worth $100 or more are eligible.
The exceptions to this are as follows:
- Cash-like transactions (Cash Advances)
- Chase Fees (Annual Membership Fees)
- Purchases Made Under a Promotion
Frequently Asked Questions
What is My Chase Plan?
My Chase Plan is a ‘BNPL feature’ that allows credit card users to pay for some of their transactions through fixed monthly payments instead of making minimum payments on their balance.
How Do I Setup My Chase Plan?
To set up your My Chase Plan, sign in to Chase.com or open the Chase Mobile App
- View your transaction history
- Choose an Eligible Transaction
- Choose a Payment Plan
Which Purchases are Eligible?
Transactions worth $100 or more are eligible are mostly eligible and they will be marked as eligible with a “Pay over time” option next to them in your transaction history.
Cash-like transactions, Chase Fees, and Purchases made under promotions are NOT eligible.
What are the Available Plan Durations?
My Chase Plan durations can range from 3-24 months. The availability of certain plan durations depends on the purchase and your credit history.
Summary
My Chase Plan doesn’t possess all the advantages of your traditional Pay in 4 BNPL loan but it can still be used to get a better deal if used wisely. If you’re up to it, you can check the My Chase Plan calculator regularly to see if you can get a lower interest rate/monthly fee on some of your transactions.
At the end of the day though, My Chase Plan’s value still depends on how well you can manage your finances. The same can be said for Buy Now, Pay Later. These services can be helpful budgeting tools or ways to rack up debt and late fees.
