Amex Plan It Lets You Pay off Purchases in Monthly Installments
Generally we recommend only using rewards-earning credit cards if you have the means to pay off your balance in full each month, since interest charges entirely negate any value you'd get from earned points and miles. Certain interest-free offers could be worth pursuing in some cases, but as always, be sure to read every word of the fine print — even a simple slip-up could leave you owing hundreds in interest charges and fees.
While we know that carrying a balance over a long period of time typically requires paying substantial interest, Amex just announced a new option that could be more appealing to some. This program, called "Plan It," lets you create a monthly payment plan for purchases of $100 or more.
To take advantage, simply select the Plan It option next to an individual transaction in the app or via Amex's website. You'll be offered your choice of three payment plans, ranging from 3 to 24 months. There's no interest, but you will need to pay a fee that varies based on the length of the payment plan. In the $801 example below, the monthly fee for a six-month plan works out to $5.59, for a total of $33.54 in fees, or some 4.2% of the purchase price. The three-month plan will run you $16.11 in fees, or $5.37 per month, while the nine-month plan comes along with $48.06 in fees, or $5.24 per month.
According to Amex, as of tomorrow, Plan It will be available "across all eligible US consumer credit cards," including co-branded cards.
The issuer is also launching a feature called Pay It, which actually makes it easy to pay off transactions early — before your statement closes each month. Once a transaction posts, you can select the Pay It option to wipe that charge from your account right away, potentially bringing your balance down to zero before your statement date.
Will you be using Plan It or Pay It?
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| 2X miles | Earn 2X miles per $1 on every purchase, everywhere |
| 5X miles | Earn 5X miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Business Travel |
Pros
- Simple earning structure
- Bonus categories
- Annual credits
- No foreign transaction fees
- Flexible redemption options, including transfer partners
Cons
- Has an annual fee
- Fewer bonus categories than some competitors
- Lacks premium perks
- Limited-time offer: Earn up to 150,000 bonus miles—75,000 miles once you spend $7,500 in the first 3 months, and an additional 75,000 miles once you spend $30,000 in the first 6 months
- Earn unlimited 2X miles per dollar on every purchase, everywhere, no limits or category restrictions, and miles won't expire for the life of the account
- Receive up to $220 in credits: Receive an annual $50 travel credit for bookings through Capital One Business Travel, up to an annual $50 statement credit for purchases at qualifying advertising or software merchants, plus up to a $120 credit for Global Entry or TSA PreCheck® every four years. Terms and conditions apply
- Unlimited 5X miles on hotels, vacation rentals and rental cars booked through Capital One Business Travel
- Transfer your miles to 15+ travel loyalty programs
- Redeem your miles instantly for any travel-related purchases, from flights and hotels to ride-sharing services
- $95 annual fee
- Free employee cards which also earn unlimited 2X miles from their purchases
- Top rated mobile app