Buy Now, Pay Later on Credit Cards: A Flexible Way to Manage Purchases
Explore how Buy Now, Pay Later on credit cards works, its benefits, risks, and tips to use it wisely in 2025.
Buy Now, Pay Later on Credit Cards: What You Need to Know in 2025
Buy Now, Pay Later (BNPL) has become one of the most talked-about financial tools in recent years. While apps like Afterpay and Klarna first popularized it, traditional credit card issuers are now stepping in.
Today, many credit cards offer their own version of BNPL, often marketed as “Installment Plans” or “Pay Over Time” options. These features allow you to convert eligible purchases into predictable, fixed payments—usually at a lower interest rate.
Understanding how BNPL works on credit cards can help you make smarter financial decisions and avoid the traps of high-interest debt.
How Does BNPL Work on Credit Cards?
Unlike third-party apps, credit card BNPL programs are integrated into your card account. Once you make a qualifying purchase—often over a set dollar amount—you can choose to split it into equal monthly payments.
Card issuers like American Express, Chase, and Citi have rolled out features under names like Plan It®, My Chase Plan®, and Flex Pay. You can usually select the payment term (e.g., 3, 6, or 12 months), and the monthly fee or interest is shown upfront.
Some plans come with no interest, just a flat fee. Others charge a fixed APR, which is often lower than your card’s regular interest rate.
Why People Love This Option
Flexibility is the top reason many cardholders choose BNPL features. You can budget around your paychecks without applying for a new line of credit.
There’s also transparency. Most plans show you the exact amount due each month, total cost of the installment, and when your payments will end—no surprises.
It’s also convenient. No need to sign up for a new app or link a different account. Everything is handled by your existing credit card provider.
What Purchases Can You Split?
Most BNPL plans require a minimum purchase amount—typically around $100. Eligible items can include electronics, travel expenses, home goods, and even services.
Some issuers allow you to select past purchases within a window of time (like 30 days) and retroactively convert them into installments.
Others let you set up a plan at checkout if you’re buying from a partnered retailer.
The Pros: Why BNPL on Credit Cards Works
- No new applications. You’re using your existing credit limit.
- Lower cost. Installment fees or APRs are often cheaper than carrying a balance.
- Easy to track. Your monthly credit card statement shows what you owe.
- Build credit. Timely payments can strengthen your credit history.
The Cons: Risks You Should Know
While convenient, these plans can still lead to overspending. Just because you can split a $900 laptop into $75 chunks doesn’t mean you should buy it.
Also, if you miss payments, late fees may apply, and your credit score could take a hit.
And although the APR is lower, it’s still debt. Some plans aren’t eligible for promotional 0% APR offers, so read the terms before you enroll.
How to Use Credit Card BNPL Wisely
Start by setting a budget and asking if you really need to split the payment. Use this feature for large, essential expenses—not for impulse buys.
Always compare the cost of the installment plan against just paying off the balance faster on your own.
If your card offers multiple plan options, choose the one with the shortest term and lowest fee. And above all, set calendar reminders so you never miss a due date.
Top Cards That Offer BNPL in 2025
Some leading credit cards offering built-in BNPL features include:
- American Express Plan It® – No interest, just a monthly fee.
- My Chase Plan® – Fixed monthly fee and flexible plan durations.
- Citi Flex Pay – Available at checkout on Amazon or after purchase through your account.
These tools vary by issuer, so always check the exact terms and eligibility before enrolling.
The Bottom Line: A Smart Tool When Used Right
Buy Now, Pay Later features on credit cards give you the power to manage your budget more effectively. But like any credit product, they come with responsibility.
Used wisely, they can help you break up large purchases without turning to high-interest debt. Used recklessly, they can become yet another financial trap.
Treat it as a budgeting tool—not a spending excuse—and you’ll get the most out of what credit card BNPL has to offer.