How Chase Pay Over Time is helping me pay off a large purchase interest-free
When I decided to buy a couch, I knew I'd need to pay the cost off over time. After all, furniture is a big-ticket item.
The easiest and (to me) most obvious answer was a 0% APR card. Most 0% APR cards let you pay off a charge over 12 to 18 months, but some cards have an introductory 0% APR period that lasts for as long as 21 months. This would give me more than enough time to pay off my couch without feeling financial strain.
Unfortunately, my plans for a 0% APR card ended in a rejection.
Since issuers often frown on applying for another card right after getting rejected, I didn't want to apply for a different card right away. Insert Chase Pay Over Time.
Here's why I plan on checking Pay Over Time for all of my future large purchases — and why you should, too.
What is Chase Pay Over Time?
Some issuers offer cardholders special payment plans for large purchases. These plans may have a special annual percentage rate (APR) or a monthly fee in exchange for no interest. The latter is how Chase Pay Over Time works.
When you make a purchase of $100 or more, you may see the option to put the charge on a Pay Over Time plan.
Chase will give you a few different options to choose from, allowing you some flexibility in how large your monthly payments will be and how long you have to pay off the entire charge.
Chase often charges a monthly fee, but you won't pay any interest as long as you pay the charge off by the end of your plan.
However, as I found in my recent experience, sometimes you'll get lucky and receive an offer for a no-fee plan.
Why I chose Pay Over Time
As I mentioned earlier, I needed a couch for my apartment. Anyone who's furnished a home knows that furniture is expensive, so it's a good idea to try to find a way to pay those charges off over time.
I originally tried to apply for the Wells Fargo Reflect® Card (see rates and fees). Wells Fargo rejected me for having too many new accounts in the past 24 months, echoing the frustrations that points and miles enthusiasts often encounter with Chase and their 5/24 rule.
I was counting on this card for my new couch, since the Wells Fargo Reflect offers a 0% introductory APR for 21 months on purchases and qualifying balance transfer (then a variable APR of 17.49%, 23.99% or 28.24%). While I don't expect it to take me that long to pay off my couch, having the safety net is always nice in case extra unexpected expenses come up.
I thought I'd have to postpone my couch purchase, but then I remembered Pay Over Time. I hadn't used it before, so I wasn't certain if I could get a no-fee plan like some Reddit users said they'd received. But I was willing to take the risk.
Worst case scenario, I'd have to pay a little extra in fees, but I'd have a piece of furniture I needed.
My experience with Pay Over Time
I have four cards from Chase that are eligible for Pay Over Time:
- Chase Freedom Flex® (currently closed to online applicants)
- Chase Freedom Unlimited® (see rates and fees)
- Chase Sapphire Preferred® Card (see rates and fees)
- United℠ Explorer Card (see rates and fees)
The information for the Chase Freedom Flex has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
I chose my United Explorer since it's the Chase card I use the least right now. It's easier for me to get a quick glimpse of what I have left to pay if my couch is one of the only (or the only) charges on my statement.
I could've used my Freedom Unlimited for 1.5% cash back on my purchase, but I don't have a high credit limit on that card. Putting my purchase on my Freedom Unlimited would've held over 30% of my credit line hostage while I worked to pay it off. I use that card for a lot of purchases, so that was a no-go.
Most of Chase's cards offer Pay Over Time, so you don't have to open one of these cards to take advantage of this benefit.
Once the charge went through, I selected Pay Over Time to see my options. Moment of truth: Would I luck out with a no-fee plan?
Fortunately, that's exactly what I got. I had a few options for how long I wanted my Pay Over Time plan to be. I chose the 18-month plan; like I said earlier, I like longer plans because they give me greater peace of mind.
Even if additional expenses come up, I know I can make the minimum payment each month. And if they don't, I can pay off my couch sooner than 18 months.
Chase Pay Over Time vs. Paying in Full
Chase Pay Over Time is a great tool for purchases you need, but can't afford to pay for all at once. I aim to follow TPG's golden rule of only charging what I can afford to pay, but every now and again, times like this come up where that isn't possible.
But what about if you know for certain you can pay off a large purchase in one go? Is Pay Over Time still worth considering?
I believe it is. If you're offered a plan with no fee, it might be worth parking the money you have on hand in a high-yield savings account. Then, you can either pay off the monthly charge with other income or pay it off slowly from the money you've stashed away.
Regardless of which strategy you choose, once your savings have generated some interest, you can always opt to pay your plan off early, penalty-free.
Bottom line
I'm very grateful that I was able to secure a no-fee Pay Over Time plan.
It allowed me to get my couch despite not being approved for a 0% introductory APR card. I plan on checking it more regularly going forward, especially for any emergency expenses that arise.
Given that you aren't guaranteed to get a no-fee Pay Over Time plan, I still recommend trying to open a 0% introductory APR card first for any expenses that you don't have the ability to cover entirely.
But if you get rejected or aren't in a position to open a new card, this is a great alternative.
Related: How I earned almost 30,000 Amex Membership Rewards points with help from Rakuten
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.