Chase Pay Over Time and My Chase Loan: What They Are and How They Work

Ideally, you pay your credit card balance in full each month to avoid interest charges. But unexpected expenses happen. Chase’s two flexible financing offers, Chase Pay Over Time and My Chase Loan, give cardholders additional choices when they have a balance to repay.

These offers may not be available on all Chase cards at all times, and they do come with fees or interest, so it's worth reading the fine print and comparing them

» MORE: Card issuers are offering cheaper ways to access your credit line

Chase Pay Over Time

What it is

Chase Pay Over Time allows cardholders to set up monthly payment plans to pay off specific purchases on their card. There are two ways to use this feature:

• After you've made a purchase (option formerly known as "My Chase Plan" ): Once an eligible charge of $100 or more appears on your statement, you can set up a plan to pay it off in equal monthly installments. There's a monthly fee of up to 1.72% of the purchase amount (or the amount you choose to pay over time, if it's not the full purchase price). The monthly fee is based on factors including the purchase amount and the length of the repayment period. Plans can range from three to 24 months, and you can have up to 10 active or pending plans on your account at one time.

• At checkout on Amazon. When your cart adds up to at least $50 and you have a Chase card in your Amazon wallet, you can choose to set up a payment plan at checkout. These plans will charge interest, but the rate will be lower than the ongoing APR on your card.

Pros

• Available on most of Chase’s consumer credit cards. (The Amazon checkout option, however, is not available on Amazon-branded credit cards issued by Chase.

• No interest for after-purchase plans.

• If your card offers, separately, a 0% APR promotion for new purchases and that promotion is still active, you won’t be charged for a Chase Pay Over Time plan.

• You’ll still earn rewards for purchases you choose to pay back under Chase Pay Over Time.

• Before making a purchase, you can see an estimate of plans you may be eligible for.

• No penalty if you pay off a Chase Pay Over Time early.

Cons

• Smaller charges of less than $100, or charges of $100 or more that were made more than 90 days ago, are not eligible for after-purchase plans.

• The fixed monthly fee can become more expensive than interest as the balance on your plan gets lower over time.

• Once you create a plan, you can’t change or cancel it.

• If you return an item that you set up a plan for, you’ll have to call Chase to have a credit applied to your plan balance.

» MORE: Buy now, pay later vs. credit cards: Which is right for you?

How to activate after-purchase Chase Pay Over Time

• You can create a Chase Pay Over Time plan by logging into your account and selecting an eligible purchase.

• Select your card in the Chase app and scroll down to the "Chase Pay Over Time" tile. Or, when logged into the Chase website, select your card, click the "More" button and choose "Pay over time." From there, you’ll be able to create a plan, track your existing plans or calculate a potential plan.

How to activate Chase Pay Over Time at Amazon

• You must have an eligible Chase card added to your wallet on Amazon.

• At checkout, you will see your eligible card specifying "financing offers available." Select that option.

• Choose a plan duration.

My Chase Loan

What it is

My Chase Loan is not a cash advance, even though you’re borrowing against your card’s credit limit. It’s more like a personal loan, in that you pay the money back over a set period of time, and you’re charged a fixed interest rate. The approval process is much simpler, though. There’s no application or credit check needed. Once approved, you receive a deposit directly into your bank account. Payback time frames range from six to 24 months.

The lowest amount you can borrow with My Chase Loan is $500, and the maximum amount depends on factors like your monthly spending and creditworthiness. Your loan won’t take up your entire credit limit, however. You’ll still be able to use your card for purchases.

Pros

• No need for an application or credit check.

• Receive your loan in one to two business days.

• The APR for My Chase Loan is typically lower than the standard APR your card charges for unpaid balances.

• You can continue to use your credit card to make charges.

• No penalties for paying off your loan early.

• Monthly loan payment is worked into your monthly credit card bill, so there’s no separate bill.

Cons

• My Chase Loan transactions do not earn rewards.

• Depending on what you qualify for, interest rates may still be high. Other loan options may be more attractive.

How to activate My Chase Loan

• Online or on the Chase app, follow the instructions above for Chase Pay Over Time. On the screen for Pay Over Time, you'll see "Other card lending offers." Click the button for My Chase Loan.

• From there, you’ll be able to see the maximum amount you can borrow, a range of possible APRs and several specific loan options.

• Once you select a loan, you can choose which bank account to move the money to.

» MORE: Buy now, pay later already comes standard on many credit cards

Alternatives for paying down a credit card balance

Other financing options may allow you to pay down debt at a lower cost: