Card Issuers Offer Less Costly Ways to Access Your Line of Credit | Personal finance

You will have a fixed period to repay the loan with a fixed monthly payment. You will be charged interest, but potentially at a rate lower than the current APR on your credit card. These options allow you to get a loan without an application, which means no further serious investigation of your credit report.

“With My Chase Loan, customers have told us that the ability to take out a loan with no application, no credit check, and no new account to manage, at an APR lower than their card’s standard APR is attractive,” said a door. – Chase spoke to an email. “They also like the transparency of knowing their monthly payment amount and loan term in advance, and the reassurance that there are no origination or prepayment fees.”

If you need time to pay off a large purchase, this type of option may be a better deal than charging it straight to your card – and it’ll be cheaper than a cash advance.

What to keep in mind: These programs are targeted, so they may not be available to everyone at all times. Cons to consider include the potential impact on your credit usage (and your credit scores), as well as the overall cost of the loan, even at a lower APR. The loan amount you can apply for will be based on your available credit limit and your creditworthiness, so it may be worth checking personal loan rates from other institutions.

Nerd tip: If you want to break up an individual credit card purchase into more manageable chunks, you can turn to Chase’s My Chase Plan option or Citi’s Flex Pay feature instead. Conditions and fees may apply, but these options can make monthly payments more predictable. AmEx also offers a Plan It feature, for which a fixed monthly fee applies, but you will know how much you will pay each month. Conditions apply.

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