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- Chase is offering interest-free My Chase Plans for travel purchases of $100 or more until August 31.
- If you’re planning a trip, it’s a great way to stretch out your payments without paying more.
- Don’t let the ability to pay later wreck your budget, though – avoid the temptation to overspend.
- Read Insider’s guide to the best travel rewards credit cards.
As the travel industry starts to regain steam, Chase is trying to help boost the momentum and encourage more people to get away from home. Through August 31, 2021, eligible travel-related purchases over $100 qualify for a My Chase Plan with no extra fees.
Typically, My Chase Plan purchases are divided into a set of monthly installments that come with additional charges. It’s a buy-now, pay-later approach that lets you see how much an extended payoff will actually cost you. Chase makes some extra cash, and you get some extra time. It’s important to remember, though, that the best way to use a credit card is to avoid needing that time and pay your balance in full.
With this offer, Chase doesn’t get the extra cash. So, for example, I just created two identical nine-month My Chase Plans to pay for flights to Charleston, South Carolina this fall (my wife’s ticket and my ticket are separate transactions with American Airlines). Every month, each plan will add an additional $25.20 to my minimum payment on my
The My Chase Plan promotion is effectively an interest-free way to manage a budget. So, if you’re planning to take a trip anytime soon, this is a great option. There are some important additional considerations, though.
Remember to budget for everything else you’ll spend on the trip
Chase knows that you can only pay for so much in advance of a trip. So while they aren’t scoring any finance charges from your initial planning, they also know that you will use your card for loads of other expenses when you actually hit the road: Uber rides to and from the airport, dining out each night, tickets to attractions and hotel rooms.
Consider all those expenses before you travel to avoid letting them add up and accrue interest. Otherwise, the memories of a vacation are overshadowed by falling into a debt trap. For our trip in mid-September, I have an itemized estimate of the costs so we can set aside a chunk of savings to immediately pay it off.
Don’t pre-pay for your hotel rooms
Hotels often dangle a lower rate in front of your eyes in the hopes of getting your money – and keeping it, even if your plans change. I thought about pre-paying for our hotel room at the Hotel Bennett. The advance purchase rate is around $50 cheaper per night. More affordable and more time to pay it back seems like a win-win, right? Wrong.
Read more: I haven’t paid for a hotel room in 10 years – here’s how I stay for free
Right now, the flexibility to cancel 24 or 48 hours prior to arrival is essential. The uncertainty of the Delta variant could derail our itinerary. If the virus leads to local orders to shut down restaurants, we would want to reschedule. The flights are flexible and can qualify for statement credits. The hotel, though, would be a waste.
Avoid unnecessary spending
Stretching out your payments can make you feel more comfortable about a bigger expense. For example, a first-class flight for our trip was around $650, and a My Chase Plan could let me split that expense into 12 or 18 months.
Read more: 3 mental traps that can make you overspend on a credit card, according to a behavioral economist
Those smaller chunks were almost enough inspiration to justify shelling out extra money. I didn’t, though. It’s a short flight from Chicago. Regardless of paying any interest, I’ll take the cheaper economy for a journey that steers clear of any of the turbulence that comes with overspending.
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