How does my Chase plan and Chase loan work? | Credit card

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Chase offers creative payment and borrowing options for credit cardholders: My Chase Plan and My Chase Loan. My Chase Plan is a buy now, pay later version, while My Chase Loan allows cardholders to borrow within their available credit limits. Here’s what you need to know about these programs before you decide to use one.

How my pursuit plan works

My Chase Plan is a specific BNPL plan for Chase cardholders. “BNPL has been successful enough that mainstream players are starting to think about how to respond to it,” says Mike Sullivan, personal finance consultant for Take Charge America, a credit counseling and debt management agency at non-profit. “Some of them try to compete by offering the same types of plans.”

Here’s how it works. After making a purchase over $100, log in to your Chase app or online account and select the “Pay with My Chase Plan” option. Depending on the purchase and your credit history, you will have the choice between one, two or three plans. The duration of the plan can vary from three to 18 months.

Once your plan has started, you will pay a fixed amount for the designated number of months, which will simply be added to the minimum payment due on your card. Although there is no interest, a fixed fee based on the amount of each purchase transaction, the number of billing periods and other factors is added to the payment amount each month, so splitting of your payments has a cost.

Advantages and disadvantages of my hunting plan


  • It is convenient. No credit inquiries or checks are necessary since qualifying purchases will automatically indicate if the My Chase Plan option is available. “Why open any other type of account if you can just pull out your card and say afterwards, ‘I want to pay this in three, 10 or 18 payments’?” said Sullivan.
  • It is more versatile than other BNPL diets. The main BNPL services like Afterpay, Klarna, Zip and PayPal’s Pay in 4 most often split purchases into four payments. My Chase Plan offers more flexibility and longer lead times.
  • It provides structure. If you’re someone who tends to run around balances for a long time or only pay the minimum on your cards, My Chase Plan’s fixed payment amount ensures you’ll repay the purchase within a short period of time. defined. Even with the additional fees, it can be less expensive than holding a balance for several months or years.
  • You will be rewarded. Because you used your Chase card for the original purchase, you’ll earn points or cash back.

The inconvenients

  • It’s not free. Even if you don’t pay an annual percentage on the purchase, it’s important not to overlook the additional monthly fees, Sullivan says.
  • This could impact your credit. If you use My Chase Plan, it will likely impact your credit utilization rate, which is the percentage of available credit you use. This is important because credit usage is one of the main factors in calculating your credit score. the higher your usage, the more your score may be impacted.
  • It is added to your monthly debt. Especially in times of inflation, Sullivan says you should carefully weigh whether you want to increase your monthly billing obligations. It says to ask yourself, “If I go into debt right now and things continue like this, will I be able to make these payments?”

How My Chase Loan Works

My Chase Loan lets you borrow against your available credit, but in a much more convenient way than a cash advance. For starters, there are no fees, and you’ll actually get a lower (not higher) APR on the amount you borrow. My Chase Loan only uses a portion of your credit limit, so you always have the flexibility to use the card for purchases if needed.

To set up your My Chase loan online or in your app, choose your loan amount (there’s a minimum of $500 and the maximum depends on your creditworthiness and account history). Next, decide on the length of the loan (12, 18 or 24 months). Once you choose, funds are deposited into your bank account within two business days. Your fixed monthly payment schedule will begin the next billing cycle.

“The idea that you can just click a button and have that money put into a reasonable fixed-rate APR loan can be appealing for emergencies,” Sullivan says. However, he cautions against using the loan for impulse purchases.

Advantages and disadvantages of my Chase loan


  • Quick access to cash in an emergency. “If you have someone who needs to install a new AC unit in their home, this can be a great alternative to putting down a traditional credit card,” says Brian Stivers, Investment Advisor Rep and Founder of Stevens Financial Services.
  • No inquiries or credit checks. “For the most part, if you’ve been a good customer, I guess they’ll probably give you really good terms,” ​​Sullivan says, since you’re already an approved borrower. And it happens instantly.
  • An APR lower than your card’s regular purchase rate. Although borrowing from your credit issuer with a cash advance is universally seen as a bad idea due to the APR and high fees, My Chase Loan has a lower APR than the purchase APR on the card and free of charge.

The inconvenients

  • You can get better rates elsewhere. Although the APR is lower than the normal card rate, that doesn’t mean you can’t get a better deal. “Right now, there are many sources of installment loans and personal loans that only work at 6% or 7%,” Sullivan says. “The question is, what is the APR on the Chase loan? You always have to consider that.”
  • This could tempt you to spend beyond your means. “Make sure you need what you borrow, and not just because it’s easy to get,” says Stivers. There’s a big difference between borrowing money to make a necessary repair at home and spending a vacation at the beach, he adds.
  • No reward. Taking out a My Chase loan will not earn you points or cash back like a regular credit card purchase would.

My hunting alternatives

Although My Chase Plan and My Chase Loan offer two convenient options, it’s always a good idea to explore other loan products to decide which is right for you. Here are some others to consider:

  • A 0% APR offer. “I always recommend people, whenever they can, if it’s a big purchase that they know they want to pay off in a few months, look for a 0% pure interest offer. “, says Stivers. This can be a credit card with a 0% APR introductory period or a deferred interest offer. The key is to make sure you pay off your balance in full before the end of the promotional period.
  • A BNPL service. If there are other BNPL providers available at the point of sale, this is an option to consider, as they generally have no fees or interest. However, you will usually have to make full payment within a shorter period of time.
  • A personal loan. “In my experience, all credit card loans will have a higher interest rate than if you qualify for a loan from your local credit union or bank,” Stivers says. If you have a strong credit profile to qualify for favorable terms and term permits, it might be best for you to shop around and find a low-interest personal loan.
  • A home equity loan. Borrowing against your home’s equity usually has lower rates than other types of loans because the loan is secured by your home. However, you risk losing your home if you are unable to repay the loan. The qualifications are also stricter and the application process is longer.

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