When I set out to purchase a sofa, I was well aware that repaying the cost would take some time. Furniture, after all, isn’t cheap.
The most straightforward solution in my mind was to opt for a 0% APR card. Typically, these cards let you spread out repayments over 12 to 18 months, with a few even extending to 21 months. This timeframe seemed perfect for easing the financial strain of buying a sofa.
However, my plans hit a snag when my application for the 0% APR card was denied.
I hesitated to apply for a different card right away since many issuers don’t look kindly on multiple applications following a rejection. That’s when I discovered Chase’s “pay over time” option.
This is why I intend to use this features for significant purchases in the future—and you might want to consider it too.
What is Chase’s pay over time?
Some card issuers offer special payment plans for large expenses. These plans may involve monthly fees in place of interest charges—this is how Chase’s system operates.
If your purchase exceeds $100, you might be eligible for this pay-over-time feature.
Chase gives you several choices, allowing you to determine your monthly payments and the total period needed to settle the balance.
The bank typically has a monthly fee, yet as long as you’ve paid off the amount owed by the end of the agreement, you won’t incur any interest.
From my recent experience, I learned that sometimes you can actually receive a free payment plan offer.
Why did I choose pay over time?
As I mentioned earlier, I needed a sofa for my apartment. Anyone who has shopped for furniture knows it can be a hefty expense, so finding a way to repay that cost over an extended period makes sense.
I first tried to apply for the Wells Fargo Reflect® Card, which was noted for its 0% intro APR for 21 months on purchases. However, I was turned down due to having too many new accounts within the past two years.
Even though I thought I’d have to delay my sofa acquisition, the concept of using the pay-over-time feature came to mind. I hadn’t tried it before, so I was a bit unsure about getting a free plan, even though some Reddit users mentioned it was possible. Still, I decided to take a chance.
In the worst-case scenario, I would have to pay a slight extra charge, but at least I’d have the furniture I needed.
My experience with pay over time
There are four Chase cards available.
I opted for the United Explorer card since I hadn’t used it in a while. This way, it would be easier to monitor the sofa purchase on my statement.
I could use my Freedom Unlimited card too, which offers 1.5% cashback on purchases, but it has a low credit limit. Utilizing that card for the sofa would max out a significant portion of my available credit, which wasn’t ideal.
Most Chase cards have the pay-over-time benefit, meaning you don’t need to get a new card to take advantage of it.
After finalizing my purchase, I looked into my options for payment plans. Honestly, I was eager to see if I might qualify for a free one.
Fortunately, that’s precisely what happened. I was presented with multiple options on how I could structure my payment plan, and I chose an 18-month term. As I mentioned earlier, longer plans typically give me peace of mind.
I know that even with added fees, making a minimum monthly payment is an option. Otherwise, I can clear the balance sooner—within those 18 months.
Pay over time or pay in full?
The Chase pay-over-time option is handy for necessary purchases when you can’t afford to pay all at once. I try to stick to the guideline of only charging what I can afford, but sometimes, things happen that make that difficult.
But what if you’re confident you can pay off a big purchase immediately? Is the pay-over-time option still worth considering?
I believe it is. If you can secure a no-interest plan, it might be beneficial to keep your cash in a high-yield savings account. This way, you can pay your monthly payments from that fund or other income.
Whatever choice you make, if your savings generate some interest, you can pay off the plan early without facing a penalty.
Conclusion
I’m genuinely thankful I managed to secure a pay-over-time plan.
I was able to get my sofa despite being denied for a 0% introductory APR card. I’ll likely be more vigilant about checking such options in the future, particularly for unexpected expenses.
Since there’s no guarantee of getting a pay-over-time plan, it’s wise to prioritize applying for a 0% introductory APR card for costs that aren’t feasible to cover all at once.
But if you happen to get denied or can’t apply for a new card, the pay-over-time option is definitely a solid alternative.
