On August 30, American Express released a new mobile app feature for most of its popular charge cards and credit cards. Going by the name of Pay It Plan It, the feature offers card holders new ways to approach debt repayment.
Unlike other companies, who have popular products like cash back or travel credit cards, American Express’ main financial products are charge cards.
On this type of card, outstanding balances on a given card are due in full by the end of a billing cycle or the moment. Also, with a credit card, you can roll over payments from cycle to cycle, thus generating interest and some fees.
There’s an app for that!
Using Pay It Plan It, both of these facets are used, so cardholders can actually choose what they want to do: Pay or Plan.
Specifically, cardholders can access the mobile app and pick out different transactions from their billing cycle. If some of them are lower than $100, they can select them and pay immediately, with a single touch of a button. If they make multiple smaller transactions, the overall balance on a charge card will automatically be reduced. This will limit the chance of a rollover or an additional fee.
Moving on, we have the new Plan It feature, designed for transaction greater than $100. Cardholders can select a monthly payment plan for the selected balance, while the plans can vary from three to 24 months. This secondary option comes with an exact fee, replacing interest charges, says Lendedu.
Definitely an option worth checking!
There’s no doubt that this is a very interesting feature, since it allows users to benefit from specific transactions, with flexibility. Also, the lack of interest charges when it comes to the Plan It feature makes it a very reliable option.
Overall, the introduction of the new features make American Express charge cards very interesting, especially for those who don’t understand the concept of a charge card very well. With Pay It Plan It, they don’t need to worry about an incurring late payment fee, since a part of the balance can be knocked off early!