If you find it challenging to pay off your credit card balance in full, especially if you have irregular income, you’re not alone. But if you have an American Express (Amex) card, there’s a solution that can help you take control of your payments: the Pay It Plan It program. With Pay It Plan It, you can decide how much to pay toward your account balance and when to make those payments, giving you more flexibility and saving you money on interest.
What is American Express Pay It Plan It?
Pay It Plan It is a feature available to eligible American Express customers. It allows you to pay for purchases at different times throughout the month or break up larger purchases into manageable payments. You can access Pay It Plan It options through the American Express mobile app or website. It serves as an alternative to Amex’s “Pay Over Time” option, giving you the freedom to pay off your balance at your own pace and potentially save on interest with an interest-free payment plan for a small monthly fee.
How does it work?
Pay It Plan It consists of two different payment plans: Pay It and Plan It.
Pay It
Pay It lets you reduce your balance by making small payments for specific purchases. The payments are applied against your monthly balance, and if you have a minimum payment due, your Pay It payments will help reduce that balance. Simply log in to the Amex mobile app, go to your transactions, and look for posted transactions under $100 with a “Pay It” icon next to them. Click the Pay It icon, choose your preferred checking account, and complete the transaction. Amex will update your outstanding balance within 48 hours.
Plan It
Plan It allows you to pay off larger purchases over time with an interest-free payment plan. You can group up to 10 transactions into a payment plan, which lowers your monthly balance. To access Plan It, log in to the Amex website or app, and look for transactions with a “Plan It” icon. Choose which purchase(s) you want to include in the plan, and you’ll see different options for plan durations and their respective monthly fees. Your first monthly plan payment will appear in your next billing statement. Amex even offers a Pre-Purchase Plan It Calculator, allowing you to determine plan duration and fee options for specific purchase amounts.
Who is this plan for?
Pay It and Plan It are helpful for anyone looking to spread out their payments over a specific period. If you anticipate carrying a monthly balance, Plan It can be especially useful, as the monthly fee is typically lower than the interest you would pay otherwise. Pay It is great for individuals who want to keep their monthly balance low throughout the month, helping them stay within their credit limit and improve their credit score.
Plan requirements and limitations
To use Pay It Plan It, you must meet certain requirements and be aware of the following limitations:
- Creditworthiness: The number of plans you can create depends on factors such as your credit history and credit limit. Amex may also limit your ability to create new plans if one of your accounts is not keeping up with payments or is enrolled in a debt management program.
- Card type: Pay It Plan It is available on most Amex consumer card accounts, but there are exceptions. Prepaid cards, cards without a credit limit, and Amex small business cards are not eligible for Pay It Plan It.
- Date of opening: Some cards may not enroll in Pay It Plan It due to the date the account was opened. Additionally, certain cards offer introductory 0% APR periods, eliminating the need for a payment feature like Plan It.
- Account status: If you have a low credit limit or an Amex account enrolled in a debt management program, you may not be able to create payment plans.
- Limited plans and payments: Amex generally restricts users from creating more than 10 plans at a time, with each plan limited to 10 transactions. For the Pay It feature, users cannot make more than five payments on transactions per day.
- Eligible transactions: Not all transactions qualify for Pay It or Plan It. Transactions under $100 are eligible for Pay It, while transactions over $100 cannot automatically be added to a payment plan. Certain types of transactions, such as cash advances, foreign transaction fees, and annual fees, are also excluded. Additionally, users cannot create payment plans that exceed 95% of their credit limit.
Pros & Cons
As with any financial tool, Pay It Plan It has its pros and cons:
Pros
- Pay It helps keep your monthly balance in check, preventing you from going over your credit limit.
- Plan It can save you money on interest for larger purchases that you can’t pay off in full by the end of the month.
- Amex clearly indicates which transactions are eligible for Pay It and Plan It, making it easy to identify.
- Your plan payment amounts are automatically factored into your monthly minimum balance due.
Cons
- Plan It requires a monthly fee for each payment plan you create.
- Once a plan is created, it cannot be canceled or have its duration adjusted.
- Pay It has limitations, such as the number of transactions per plan and per day.
Which cards are eligible?
Most Amex consumer card accounts are eligible for Pay It Plan It, as long as they have a credit limit. However, prepaid cards and Amex small business cards are not eligible. If you have poor or no credit, your eligibility may be limited in terms of how many plans you can create.
Alternatives to Pay It Plan It
If you’re looking for alternatives to Pay It Plan It, Amex offers a “Pay Over Time” feature that allows you to pay off eligible charges gradually with interest. Chase credit cards also offer similar features, such as “My Chase Plan,” designed for transactions over $100.
Conclusion
Amex’s Pay It Plan It payment options provide you with greater control over your credit card payments, helping you save on interest and avoid going over your credit limit. Both Pay It and Plan It are valuable budgeting tools that can also contribute to maintaining a good credit score. Most Amex consumer cards offer these payment options in addition to Pay Over Time, so you have multiple choices to suit your financial needs.
Frequently asked questions (FAQs)
How are Pay It payments applied to my account?
Pay It payments are applied against your monthly balance, reducing the minimum amount due or your adjusted balance if you have payment plans set up through Plan It. They don’t remove transactions from your history.
What amount do I need to pay to avoid interest on my account?
To avoid interest on your purchases, you need to pay your adjusted balance, which includes the monthly plan amount plus any non-plan purchases from the last statement period, by the payment due date.
How does Plan It on Delta.com work at checkout?
If you’re booking a flight through Delta.com, you can select your eligible Amex card at checkout and choose the duration option that suits you. The available options depend on your creditworthiness and the cost of the flight.