See how credit cards are embracing the BNPL trend
Buying now and paying later has never been easier—which is great, but also a little risky.
And we’re not talking about old-school store layaway or post-dated checks: we’re talking about the now-famous BNPL (Buy Now, Pay Later), which has taken U.S. consumers by storm.
And the most interesting part? Credit cards are jumping on the trend.
How does BNPL on credit cards work?
First, let’s simplify the process. Imagine you just made a $300 purchase with your credit card.
Later, when you check your bank app, you see an option to “split this purchase into 6 fixed payments.” One click, and done: you’ve activated a mini-installment plan inside your statement.
The best part? You already know exactly how much you’ll pay each month—no surprise interest charges, everything calculated up front.
Some banks offer this for purchases above a certain amount (typically starting at $100, which is the standard).
Others let you break up a portion of your total balance into installments. No need to call customer service or spend hours trying to figure out how it works.
Why are banks doing this now?
It’s simple—BNPL has won over Gen Z and millennials, so credit cards had to catch up.
These generations aren’t fans of high interest rates or revolving credit. They want predictability and flexibility.
Fintechs saw this first and gained ground fast. Now, the banks are trying to catch up by offering similar features directly through traditional credit cards.
Advantages of using BNPL on your card
- Spending control: You know exactly what you’ll pay each month, especially since it’s shown right in the app.
- Everything in one place: No need for an extra app, another account, or confusion when paying bills.
- Avoid revolving credit: Instead of letting your balance pile up, you organize your payments in advance.
- Easy to use: With just a few taps in the app, you turn a one-time purchase into fixed payments.
But what about the risks?
Too many installments can give you the false impression that everything’s under control—when in reality, you’re just stacking future debt.
If you lose control, you could end up committing a large chunk of your income to multiple installment plans.
Also, some BNPL programs charge fixed fees or disguised interest. So it’s always worth checking the APR (annual percentage rate) or total cost of the plan before agreeing.
The risks are real, and you need to understand all the fine print before you start splitting payments.
Who’s offering this feature?
- American Express: Their “Plan It” program lets you split purchases directly in the app.
- Chase: With “My Chase Plan,” you can select purchases to divide into monthly installments.
- Citi: Offers “Flex Pay” and “Flex Loan,” with similar functionalities.
- Capital One: Is testing similar features for eligible customers.
These programs usually require a minimum purchase amount, and not all purchases qualify.
Some banks also allow you to split your entire statement or convert part of your balance into a “personal loan” with a fixed rate.
How does this affect your credit?
Generally, using BNPL on a credit card can have less impact on your credit score than skipping or delaying a full statement payment.
Since you’re agreeing to a structured payment plan upfront, it’s different from just letting your balance roll over.
But watch out: if you use this feature too much and your credit utilization rate gets too high, it can hurt your credit score. The key is to stay balanced.
Is it worth it?
If you’re on a tight budget or trying to avoid high interest rates, credit card BNPL might be a smart strategy. But like any financial tool, it should be used responsibly.
Think of BNPL as a way to gain time, not a free pass to overspend. Use it for organization, not for impulse buys.
Final tip
Before activating any installment plan, do some quick math: how much will you pay in total, and what’s the monthly impact on your budget?
If the numbers work in your favor, go ahead. If not, maybe it’s better to hold off and pay in full later.
