No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
From the FAQ:
"Can I change or cancel my plan once it's been set up?
Plans cannot be altered or cancelled after they’ve been set up, but you can choose to pay them early by paying the New Balance shown on your most recent billing statement in full. If you pay off a plan early, you won't incur any future plan fees on that plan."
Pros:
Convenient
You don't need to apply for a new card
The APR-equivalent is generally better than most other rewards-focused cards
Cons:
The terms aren't as good as you could get on a new account (no 0% period)
Determining the amount you want to pay can become complicated if you're also using the card for other spend
The APR may not be as good as you could get on a CU card that prioritizes a low APR over rewards
I've not used it...but I only carry a balance at 0%.
@wasCB14 wrote:From the FAQ:
"Can I change or cancel my plan once it's been set up?
Plans cannot be altered or cancelled after they’ve been set up, but you can choose to pay them early by paying the New Balance shown on your most recent billing statement in full. If you pay off a plan early, you won't incur any future plan fees on that plan."
Pros:
Convenient
You don't need to apply for a new card
The APR-equivalent is generally better than most other rewards-focused cards
Cons:
The terms aren't as good as you could get on a new account (no 0% period)
Determining the amount you want to pay can become complicated if you're also using the card for other spend
The APR may not be as good as you could get on a CU card that prioritizes a low APR over rewards
I've not used it...but I only carry a balance at 0%.
If you are on a PIF Autopay, the Payment amount is calculated for you as the sum of relevant non-Plan It new charges, plus your Plan It Payment amount. There is no complication to this. That is why I suggest trying it rather than speculating what it is like.
Good to hear the plan can be paid off early without incurring the entire fee.
@SOGGIE wrote:
Thanks NRB! I wonder if the balance is reported to CRA's--especially for large purchases.
Your usage will be reported the same as always.
@NRB525 wrote:
@wasCB14 wrote:From the FAQ:
"Can I change or cancel my plan once it's been set up?
Plans cannot be altered or cancelled after they’ve been set up, but you can choose to pay them early by paying the New Balance shown on your most recent billing statement in full. If you pay off a plan early, you won't incur any future plan fees on that plan."
Pros:
Convenient
You don't need to apply for a new card
The APR-equivalent is generally better than most other rewards-focused cards
Cons:
The terms aren't as good as you could get on a new account (no 0% period)
Determining the amount you want to pay can become complicated if you're also using the card for other spend
The APR may not be as good as you could get on a CU card that prioritizes a low APR over rewards
I've not used it...but I only carry a balance at 0%.
If you are on a PIF Autopay, the Payment amount is calculated for you as the sum of relevant non-Plan It new charges, plus your Plan It Payment amount. There is no complication to this. That is why I suggest trying it rather than speculating what it is like.
Good to hear the plan can be paid off early without incurring the entire fee.
Oh, okay. I thought it only affected the minimum payment due.
I'll try it when they send me a no-fee general spend Plan offer. The Hilton-spend-only one arrived too late.
There are still other potential complications, though. Plans can have different APR equivalents, so someone with extra cash will need to decide which plan to pay off early first. Also, my understanding is that there is no incentive to make a Plan installment payment two weeks before the due date, since the Plan fee is not reduced.
Not terribly complicated...but not as simple as dealing purely with regular APRs.
I tried it twice. It's nice if you're gonna carry a balance anyway as the fees are less than the app for that amount of time. The only thing I didn't like was that I paid mine off the second month, but it kept showing online that I made a plan. When I checked the balances, they were zero. Today, I received an email congratulating me on paying off the first plan, at the end of the 6 month term.
I just wanted to chime in a couple of data points
Yes, Amex still reports your total balance as your total balance - Plan It does not change your balance. However, because plan it is a payment greement your minimum payment for the next statement is going to be higher then a standard revolver minimum payment for the same balance size.
The impact of these payment agreemnts to your DTI can be surprising.
I have a very high CL on my Amex cards. I got a 0% Plan It offer so I used it on a large purchase for my small business. I thought at the time - free money - why not? The minimum payment after statement cut was ~$7500 per month for 6 months. That was fine, I paid it as my other choice was PIF so I wasn't worried.
However, a couple of months in I applied for a car loan. I was declined because that extra high amex minimum payment was reported to the CRAs. That high payment took my DTI to above 45% after mortgage, other loans, etc were factored in. I ended up just PIFing my Amex card and waiting a month for it to clear up, but wow I was just not thinking about the DTI impact of the payment agreements.
Had never been declined in my life - was baffled at first. Took me a few minutes to figure it out.
Just a note/warning from my dumb mistake for others that the Plan It is very nice for flexiblity, but can screw up your DTI.