"Plan It by American Express" is a valuable feature designed to give eligible American Express Card Members more flexibility in managing their finances. Instead of carrying a balance and incurring variable interest charges, Plan It allows you to split eligible large purchases into fixed monthly installments with a fixed monthly fee. This can be a great tool for budgeting and making big purchases more manageable without the uncertainty of traditional credit card interest.
What is Plan It by American Express?
Have you ever made a large purchase and then thought, "How am I going to pay this off without racking up a ton of interest?" That's precisely where Plan It comes in! It's an installment payment option that allows you to take an eligible purchase of $100 or more (or a portion of your overall balance) and break it down into smaller, equal monthly payments over a set period. The key difference from regular credit card debt is that instead of interest, you pay a fixed monthly plan fee. This fee is presented to you upfront, so you know exactly what you'll be paying.
Think of it like a mini-loan for a specific purchase, but seamlessly integrated into your existing American Express account.
Step-by-Step Guide: How to Use Plan It by American Express
Ready to take control of your spending? Let's walk through the process of setting up a Plan It plan.
Step 1: Discover Your Eligibility and Identify Eligible Purchases (Are You Ready?)
Before you can Plan It, you need to know if you're eligible and what purchases qualify.
Sub-heading 1.1: Check Your Eligibility
First things first, not all American Express cards or cardmembers are automatically eligible for Plan It. It's typically available for personal Credit Card Accounts issued by a U.S. banking subsidiary of American Express that have either a Credit Limit or the Pay Over Time feature. Charge cards, prepaid cards, corporate cards, and business cards are generally not eligible.
To check your eligibility:
Log in to your American Express online account or open the American Express mobile app.
Look for the "Plan It" section, usually under "Services" or "Account" dashboard.
If you see the "Create a Plan" option or a "+" button, congratulations, you're likely eligible! If not, your account might not currently qualify. Your eligibility can change based on factors like your account status, creditworthiness, and account history.
Sub-heading 1.2: Identify Eligible Purchases
Once you've confirmed your eligibility, you'll need to find transactions that qualify for a plan.
Minimum Purchase Amount: Generally, individual purchases must be $100 or more to be eligible for Plan It. You might also be able to combine multiple smaller purchases to meet this minimum, or even plan a portion of your overall statement balance.
Eligible Transaction Types: Only purchase transactions are typically eligible. This means you cannot use Plan It for cash advances, balance transfers, annual fees, interest charges, or other fees owed to American Express.
Timing: You can usually set up a plan as soon as a transaction posts to your account (meaning it's no longer pending). For amount-based plans (a portion of your balance), you can usually create a plan between your statement date and your payment due date.
Step 2: Choose Your Plan Details (The Sweet Spot of Flexibility)
Once you've identified an eligible purchase or amount, it's time to customize your plan.
Sub-heading 2.1: Select the Purchase or Amount
Online Account: If you're on the American Express website, you might be able to select a single eligible purchase or even combine up to 10 eligible purchases into one plan.
Mobile App: Through the Amex mobile app, you usually select one qualifying purchase per plan.
Or a Portion of Your Balance: You may also have the option to select a specific dollar amount from your outstanding balance to put into a Plan It plan.
Sub-heading 2.2: Choose Your Plan Duration
American Express typically offers a few repayment options, commonly 3, 6, 9, or 12 months. The available durations can vary based on the purchase amount, your account history, and your creditworthiness. Sometimes, promotional offers might include different durations or even 0% plan fees for a limited time.
Sub-heading 2.3: Review the Fixed Monthly Fee
This is the crucial step where transparency comes into play. Before you confirm your plan, American Express will clearly display:
The total plan amount.
The fixed monthly fee for each available plan duration. This fee is in lieu of interest charges.
Your total monthly payment, which includes a portion of the original purchase amount plus the fixed monthly fee.
Always review these details carefully to ensure the plan fits your budget and financial goals. The fee essentially represents the cost of borrowing that money over time.
Step 3: Confirm and Manage Your Plan (Set It and Forget It... Almost!)
The final steps involve confirming your plan and understanding how it integrates into your monthly payments.
Sub-heading 3.1: Confirm Your Plan
After reviewing the terms and fees, you'll confirm your selection. American Express will typically send you a confirmation email or notification once the plan is successfully set up. It may take up to 24-48 hours for the plan to fully reflect on your account.
Sub-heading 3.2: Understanding Your Monthly Payments
Once a Plan It plan is active, your monthly installment amount (including the fixed plan fee) will be automatically added to your Minimum Payment Due on your American Express monthly statement. This streamlines the repayment process, as you won't have a separate bill to track for your Plan It installments.
Important Note: While the portion of your balance in a Plan It plan incurs a fixed fee instead of interest, any other outstanding balance on your card not part of a Plan It plan will still be subject to your standard APR if you don't pay your statement balance in full (minus the Plan It portion). To maintain interest-free days on new purchases not in a plan, you still need to pay your full closing balance (plus your Plan It monthly installment) by the due date each month.
Sub-heading 3.3: Paying Off Your Plan Early
One of the great benefits of Plan It is the flexibility to pay it off early without any penalty fees. If you pay off your entire statement balance or the current balance, including any remaining Plan It amounts, any future fixed monthly fees for that specific plan will cease. This means you can save money on the overall cost if your financial situation improves.
Benefits of Using Plan It
Plan It offers several advantages for American Express cardmembers:
Predictable Payments: With a fixed monthly fee and equal installments, you know exactly how much you need to pay each month, making budgeting simpler. This eliminates the unpredictability of variable interest rates.
Avoids High Interest: For large purchases that you can't pay off immediately, Plan It can be a more cost-effective alternative to carrying a traditional credit card balance and incurring high, compounding interest.
Maintains Credit Utilization (Potentially): By moving a large purchase into an installment plan, it can sometimes help manage your credit utilization ratio, especially if you're close to your credit limit. However, the planned amount still counts towards your overall credit limit.
Continue Earning Rewards: You generally continue to earn Membership Rewards® points or other card-specific rewards on purchases you make, even if you put them into a Plan It plan.
No New Credit Application: Since it's a built-in feature of your existing card, there's no need to apply for a separate loan or line of credit.
10 Related FAQ Questions
How to check if my American Express card is eligible for Plan It?
You can check your eligibility by logging into your American Express online account or the Amex mobile app. Look for the "Plan It" section under "Services" or on your account dashboard. If you see the option to "Create a Plan," you're likely eligible.
How to set up a Plan It plan through the American Express app?
Open the Amex app, navigate to your account details, and tap on an eligible purchase (usually indicated by a "Plan It" icon). Follow the prompts to select your desired plan duration and review the monthly fee before confirming.
How to combine multiple purchases into one Plan It plan?
If using the American Express online account (website), you may be able to select multiple eligible purchases (up to 10) to combine into a single Plan It plan. The mobile app typically allows only one purchase per plan.
How to calculate the monthly fee for a Plan It plan?
American Express will clearly show you the fixed monthly fee and the total monthly payment for each available plan duration before you confirm your plan. You can also use the Plan It calculator on the Amex website to get an estimate.
How to pay off an American Express Plan It plan early?
You can pay off a Plan It plan early by paying your entire statement balance or your current balance in full. There are no penalty fees for early repayment, and you will avoid any future monthly plan fees for that specific plan.
How to see my active Plan It plans?
Log in to your American Express online account or the Amex app and go to the "Plan It" section. You'll typically find a tab or section dedicated to "Active Plans" where you can view all your current installment plans.
How to determine which purchases are eligible for Plan It?
Purchases of $100 or more are usually eligible. Cash advances, balance transfers, annual fees, and other non-purchase transactions are generally not eligible. Eligible purchases will often have a "Plan It" icon next to them in your online account or app.
How to avoid interest charges while using Plan It?
The portion of your balance in a Plan It plan incurs a fixed fee instead of interest. To avoid interest on other purchases not in a plan, you must pay your entire statement closing balance (which includes your Plan It monthly installment) by the due date each month.
How to cancel a Plan It plan?
Once a Plan It plan is set up, it cannot be canceled in the traditional sense. However, you can pay off the entire remaining balance of the plan at any time, which effectively closes the plan and stops any future monthly fees.
How to get help with Plan It if I have questions?
You can contact American Express customer service directly through the phone number on the back of your card, or use the secure messaging feature within your online account or mobile app. They can provide specific details about your eligibility and plans.
