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Chase Pay Over Time (formerly known as My Chase Plan) is a fixed payment option with Chase that lets you pay off larger purchases over time for a fixed fee in lieu of interest payments.
Today, we'll look at Chase Pay Over Time, how it works, and its benefits and drawbacks. Then, you can decide whether or not to use it when making a big purchase with your Chase credit card.
Page Contents
How Does Chase Pay Over Time Work?
Chase Pay Over Time allows you to make fixed monthly payments on purchases over $100. This should apply to all your personal Chase credit cards, but not to small business accounts. Meanwhile, Chase debit cards have a similar feature called Pay in 4 for purchases between $50 and $400.
Chase Pay Over Time key terms
- Available on purchases of $100 or more.
- This feature lets you pay off purchases in fixed amounts over time.
- There is no interest charged, but you will pay a monthly fee. You will see this fee when setting up the payment plan.
- Eligibility is subject to creditworthiness.
- Cash-like transactions, fees, and purchases made via promotions are not eligible.
- Payment plans can range from three to 18 months, depending on your creditworthiness, purchase amount, and account history with Chase.
- You may see up to three payment plan options when setting up a plan on an eligible purchase.
- Your payment amount is calculated in the “minimum payment due” for your card that month. If you pay at least this amount, your Chase Pay Over Time payment is covered.
- Purchases earn rewards and points like normal.
- If you pay the “minimum payment” due on your credit card account, which covers both the Chase Pay Over Time requirements and the minimum due on your other purchases, there are no late fees.
How To Set Up a Chase Pay Over Time Plan
- Go to the Chase Pay Over Time information hub and log in.
- Choose the credit card you want to set up a payment plan for.
- Select the Chase Pay Over Time option next to eligible purchases (purchases of $100 or more).
- Choose a plan from the options, and you will pay exactly this amount each month for the agreed time.
- Track payment progress and history until payments are complete.
Example options
I chose a purchase of $127.50 to see what options Chase would give me. It presented three payment options:
Notice that the original purchase amount is $127.50. Each plan tells you how much you will pay per month, including the fee. The monthly Pay Over Time fee is listed underneath the total monthly cost.
Here's how much I would pay via Chase Pay Over Time with this $127.50 purchase:
- 3 payments = $130.83 total ($3.33 extra)
- 6 payments = $134.16 total ($6.66 extra)
- 12 payments = $141.60 total ($14.10 extra)
While Chase consistently mentions that you won't pay interest when you use Pay Over Time, remember, there's still a monthly fee. You will pay more in the long run if you use Chase Pay Over Time instead of paying your bill in full every month.
Calculating a plan in advance
If you're considering a large purchase, you can run the numbers in advance. From the Chase Pay Over Time information hub, click the “Calculate a plan” option on the far right.
I estimated a $1,000 purchase to see what options Chase would give me. I received three prospective payment plans.
Under each of the three options, the monthly payment amount and final total are shown clearly. Depending on how many months I take to pay off this $1,000 purchase, I would spend between $51.66 and $167.22 extra. By comparison, I would likely pay more than this in interest if I didn't use Chase Pay Over Time.
Does Chase Pay Over Time Affect Your Credit Score?
Chase Pay Over Time could affect your credit score in two ways.
For one, your Pay Over Time purchase balance will be included with your overall credit card balance. This means you'll have a higher utilization ratio, which could negatively affect your credit score.
How much this will affect your credit depends on your credit limit. If you have a $40,000 credit limit on a Chase card and use Pay Over Time for a $500 purchase, that affects your utilization far less than someone with a $3,000 credit limit financing a $500 purchase with Pay Over Time.
Conversely, consistently making on-time payments and reducing your balance may help your credit score. However, this would likely be the case if you paid your statement balance in full monthly.
Is Chase Pay Over Time Worth It?
Now that we understand how it works, let's look at the positives and negatives.
Positives
- No late fees
- No interest
- Still earn rewards like normal
- Know in advance what you'll pay each month
- Know how long it will take to pay off the purchase
Negatives
- Monthly fee to use the service
- Pay more in the long run
- Could affect your credit score due to higher balances reported each month
While one list is longer than the other, some of the negative factors can be more important. As always, you should attempt to pay all (or as much as possible) of your credit card bill every month. This saves you money in the long run and helps improve your credit score.
That said, sometimes life happens. Maybe you need an expensive repair on your car, your child has unexpected medical bills, or you lost your job. Using Chase Pay Over Time lets you avoid high interest rates that come from only making the minimum payment on your credit card.
Should you use this? If you can't pay your bill in full this month, it's a handy feature. However, don't let the program's marketing persuade you to spend more than you usually would.
Related: Beginner's Guide to Building Healthy Credit
Bottom Line
Chase Pay Over Time is a feature that lets you make fixed monthly payments on your credit card for purchases over $100.
It's available on all personal Chase credit cards and is subject to factors like your history with the bank and general creditworthiness. This service helps you avoid high interest fees, but you'll still pay a monthly fee to use it. Thankfully, you'll likely pay less in Pay Over Time fees than credit card interest.
Is it worth it? Ultimately, each person should compare the benefits and draw their own conclusions. On one hand, it can be a handy way to finance a large or unexpected purchase. However, the fees effectively make your purchase more expensive.
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