Card issuers offer cheaper ways to access your line of credit

You have a fixed amount of time to pay off the loan with a fixed amount per month. You will be charged interest, but may be at a rate lower than your credit card current APR. These options make it possible to get a loan without an application, which means there is no new hard demand for your credit report.

“With My Chase Loan, customers have told us that being able to take out a loan without applying, without credit verification and without new account management at an APR lower than their card’s default APR is attractive”, said a spokesperson for Chase in an email. “They also like the transparency of knowing their monthly payment amount and loan term in advance, and the reassurance that there is no upfront or early amortization fee.”

If you need time to pay for a large purchase, this type of option can be a better deal than taking it directly from your card – and it’s cheaper than a cash advance.

What you should pay attention to: These programs are targeted, so they may not always be available to everyone. Cons to consider include the potential impact on your credit utilization (and your credit scores), plus the total cost of the loan, even at a lower APR. The loan amount you can request is based on your available credit limit and credit rating, so it may still be worth checking other institutions’ personal loan rates.

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

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