BNPL on Credit Cards: Convenient or Costly?

Does BNPL with your credit card make practical sense or not?

The idea of buying now and paying later has always had its appeal, especially for big purchases—the so-called BNPL (literally, buy now, pay later).

Initially popularized by apps like Affirm, Klarna, and Afterpay, this model is now making a strong entrance into… credit cards.

But is this really an added convenience or a disguised trap? Let’s find out.

How does BNPL work on a credit card?

Imagine you just bought a new $800 phone with your credit card.

On your statement, besides the traditional options to pay in full or carry a balance with interest, a new option appears: split this specific purchase into 6 fixed installments of $140 with a clear fee. That’s BNPL within the card.

Banks like American Express, Chase, and Citi already offer programs like this.

Amex, for example, has Plan It, which lets you split purchases above a minimum amount with fees you see upfront—no surprises at the end of the month. Citi offers Flex Pay, and Chase has My Chase Plan.

The good part: control, predictability, and less interest

The biggest draw is clarity, since BNPL on the card gives you an exact forecast of how much you’ll pay monthly for that purchase, helping your financial planning.

Usually, the interest rates tend to be lower than the card’s standard APR, which can exceed 20%.

In some cases, there are even zero-interest promotions, especially for purchases at certain partners or during promotional campaigns.

Another plus is flexibility, since you choose which purchase to split and use it only when it really makes sense.

The not-so-good part: hidden risks and silent accumulation

BNPL on the card can give a false sense of control. Instead of thinking, “Can I pay for this purchase now?” you start thinking, “How much will it cost me per month?” and that’s where the danger lies.

Adding up installments here and there, before you know it, your statement is almost fully committed to fixed payments from previous months, leaving no room for new purchases.

Like it or not, BNPL is still debt. And if you already have other installment payments, you may end up with multiple simultaneous payments, which strains your budget and increases the risk of default.

Also, there’s the issue of impact on your credit score. Splitting purchases can affect your credit utilization ratio, and, depending on the program, the issuer might perform a “hard pull” inquiry.

BNPL or separate apps?

BNPL on the card directly competes with independent apps like Afterpay, Klarna, and Affirm. These apps usually have a similar structure but focus more on online shopping and short-term installments (like 4x interest-free).

The card’s advantage is that you don’t need an extra app or approval for every purchase.

Everything is right there in your bank or card app. On the other hand, apps sometimes offer better terms or specific promotions with partners—so it’s worth comparing.

When does BNPL on the card make sense?

Here are situations where BNPL on the card might be worth it:

• You need a higher-value item (like an appliance) and want fixed installments.
• The fee offered is lower than your card’s APR and fits your monthly budget.
• You have control over future payments and are not at your card’s limit.
• The purchase is planned, not impulsive.

Final tip: use it wisely

Just as a credit card can be a great ally or a financial villain, BNPL depends on how you use it.
It’s not a magic solution, but it can be a useful tool if used with planning.

Before activating an installment plan, ask yourself:

• Do I really need this right now?
• Can I pay the full amount without hurting my budget?
• Will splitting payments help me or just postpone a problem?

If your answers are honest and positive, BNPL on the card can be a welcome feature. But if it’s just another way to stretch your spending, maybe it’s best to… take a deep breath, put the card away, and think twice.

Written by

Gabriel Gonçalves