Beware of Pay Over Time Plans

Credit card companies make more money when you don’t pay your balance in full.
So they’ve come up with clever ways to keep you from doing just that, like offering Pay Over Time plans on select transactions.

The Name Game

They know “interest” sounds bad, so they market these plans as interest-free!
But instead of interest, they charge a fixed monthly fee. It’s another way to make you pay extra, often adding up to a significant % of your original purchase.
In other words, it’s just interest in disguise.

No Safe Space

Even debit card purchases aren’t safe anymore.
Chase, for example, offers a Pay in 4 plan on some debit transactions. They’ll refund the money to your checking account and let you repay in four installments.
The pitch? No interest, no fees.
But here’s the catch. Miss a payment and you’re hit with a $50 late fee! They're betting you'll forget or be unable to make timely payments.

Bottom Line

These offers are designed to look helpful but they’re built to profit off your delays and mistakes.
Don’t fall for the gimmicks. Stick to paying for purchases in full and on time.
It’s the only truly free way to use your cards!