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," which launched in 2019, 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 to alternatives.

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

Chase Pay Over Time

What it is

The Chase Pay Over Time suite of installment plans includes My Chase Plan, which in some ways is similar to American Express' Pay It Plan It® feature and elements of a Citi Flex Plan. Chase Pay Over Time allows you to repay a purchase of $100 or more in equal monthly payments for a set monthly fee of up to 1.72% of the purchase amount, or the amount you choose to pay over time. The monthly fee is based on factors including the purchase amount and the length of time you have to pay off the purchase. 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.

Pros

• Available on most of Chase’s consumer credit cards.

• No interest charged on your plan.

• If your card offers, separately, a 0% APR promotion for new purchases and that promotion is still active, you won’t be charged the monthly fee 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 large purchase, you can see an estimate of the 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.

• 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 Chase Pay Over Time

• You can create a Chase Pay Over Time plan by logging into your account and selecting an eligible purchase. You can also create a plan at checkout with select merchants.

• To estimate your plan options before making a large purchase, select the card from your list of accounts to access that card’s dashboard. In the app, scroll down to Credit Options & Tools. Online, select More… and then Credit Options & Tools. From there, you’ll be able to create a plan, track your existing plans or calculate a potential plan.

» MORE: What is AmEx Pay Over Time and how does it work?

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, select the card from your list of accounts to access that card’s dashboard. In the app, scroll down to Credit Options & Tools. Online, select More… and then Credit Options & Tools.

• 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: