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?
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.