The Chase Pay Over Time program gives eligible cardholders the ability to split purchases into fixed monthly payments, much like a buy now, pay later plan. This service advertises no interest, but you're still paying to borrow money through monthly fees. And those monthly fees can be deceptively expensive.
However, a fixed monthly payment can be a better way to pay off debt compared to a standard credit card minimum payment, which can stretch your repayment timeline to incredible lengths. And the Pay Over Time fees could be less than what you'd pay in credit card interest.
Here's how Chase Pay Over Time works and how to decide whether it makes sense for you.
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What is Chase Pay Over Time?
Chase Pay Over Time is a repayment option available to Chase credit card holders. You can opt to pay purchases of $100 or more over a set number of months. While there is no interest, there typically is a monthly fee, so you're still paying to borrow the money.
Pay Over Time plans range from three to 24 months based on the purchase amount, your credit and your account history. You'll normally have three plan options, and the monthly fee varies by plan.
How does Chase Pay Over Time work?
To enroll in a Pay Over Time Plan, first log in to your Chase account. Eligible card transactions have a "Pay Over Time eligible" link. Click that link, and you'll be presented with your plan options and fees.
When you use Pay Over Time, the monthly payment and fees are added to your minimum payment amount. If you're set up with auto pay, your payment is automatically adjusted to account for the Pay Over Time payment.
Once you've activated a Pay Over Time plan, you can't cancel it or change it. However, you can pay it off early with no pre-payment penalties.
Does Chase Pay Over Time make sense?
Pay Over Time may not be as cheap as it first seems. I looked over my options for two recent purchases that qualify for this service and the numbers surprised me.
While you pay no interest, there are fees included when you calculate the annual percentage rate (APR). Here's what the APR for Pay Over Time plans can look like.
A $232 utilities payment I made with my Chase Freedom Unlimited® (see rates and fees) had Pay Over Time plans of three, six and 12 months with fees ranging from $4.35 to $19.80. Even with no interest, the APR was roughly 11% to 13% for my utilities payment. That's likely less than what you would pay in interest over that same time with your credit card, but it's still a high APR.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus. Plus, if you pair it with a premium Chase credit card that allows point transfers, you can convert your cash back into flexible travel rewards.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers receive an intro APR
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
A $103.31 purchase I made with my Chase Sapphire Reserve® (see rates and fees) had Pay Over Time options of three, six and 12 months as well. The fees ranged from $4.41 to $15.24, and the APRs were an astonishing 25% to 26%. My current Sapphire Reserve APR for purchases is 26.99% (generally 19.49% - 27.99%), so Pay Over Time is only marginally cheaper in that instance.
The Chase Sapphire Reserve® is a standout premium credit card with luxury perks including, hotel credits, complimentary hotel elite status, travel credits, dining credits, rideshare and delivery benefits and much more.
- Access Priority Pass lounges, including unlimited access to Chase Sapphire Lounge® by The Club locations.
- Up to $300 in annual travel credit each account anniversary year
- You can transfer rewards to all of Chase's travel partners including World of Hyatt, Southwest Rapid Rewards and many more
- Top-tier travel and shopping protections
- High annual fee
- Requires a high credit score
- Complicated list of benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 100,000 bonus points after you spend $6,000 on purchases in the first 3 months from account opening.
- Get $3,000 in annual value with Sapphire Reserve.
- Earn 8x points on all purchases through Chase TravelSM, including The EditSM and 4x points on flights and hotels booked direct. Plus, earn 3x points on dining worldwide & 1x points on all other purchases
- $300 annual travel credit as reimbursement for travel purchases charged to your card each account anniversary year.
- Access over 1,300 airport lounges worldwide with a complimentary Priority PassTM Select membership, plus every Chase Sapphire Lounge® by The Club with two guests. Plus, up to $120 towards Global Entry, NEXUS, or TSA PreCheck® every 4 years
- Get up to $150 in statement credits every six months for a maximum of $300 annually for dining at restaurants that are part of Sapphire Reserve Exclusive Tables.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Coverage, Lost Luggage Insurance, no foreign transaction fees, and more.
- Get complimentary subscriptions to Apple TV and Apple Music for a minimum of one year when activated by June 22, 2027, a value of $288 annually.
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
This could be less expensive than putting a purchase on your credit card and paying it off over the same number of months. And having a set repayment schedule is likely a better option than making minimum payments, which can massively extend the time it takes to pay off your card balance.
But it's not a free service (outside of fee-free promotions) and isn't even particularly cheap. Pay Over Time is simply another way to loan money, and it's always going to be cheaper for you to set aside money now and buy later.
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With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.
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Bank from anywhere with access to more than 15,000 Chase ATMs, more than 4,700 Chase branches, the Chase Mobile® app and Chase.com.
Pros and cons of Chase Pay Over Time
- Possibly lower APR compared to your credit card's APR
- Fixed monthly payments
- You still earn rewards
- No penalty for paying it off early
- Monthly fees, which can be high
- Makes it easier to overspend
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