Can You Use 'Buy Now, Pay Later' for Flights?

Buy now, pay later is a payment arrangement that allows customers to pay back purchases in fixed installments, often on a monthly or biweekly basis, with the first payment typically due at checkout. Some services charge interest; others don’t. If a plan does charge interest, the factors that affect the interest rate can depend on the terms and conditions issued by the service provider. The repayment schedule is dependent on the buy now, pay later service, as well, lasting anywhere from a couple of weeks to a few months. Most buy now, pay later lenders charge late fees for missed payments.¹

Often used in retail settings – it might be easier to pay for a $1,000 laptop in four equal $250 payments than one lump sum, for example – this financing option can also be found at the checkout when purchasing plane tickets.

When opting for a buy now, pay later arrangement, you might need to provide the last four digits of your Social Security number, particularly if the service provider intends to run a credit check before approving you for the loan. Not all buy now, pay later providers run credit checks. If they do, it’s usually a soft inquiry – but it’s possible some will run a hard credit inquiry, which can temporarily ding your credit score.

Many airlines now offer buy now, pay later arrangements to make it easier for travelers to pay for tickets in installments, usually through a partnership with a third-party buy now, pay later lender.

To buy plane tickets now and pay for them later, you can usually go to the airline’s website, find your preferred ticket option, and select the “buy now, pay later” option at the checkout, if available. It’s critical to thoroughly read the terms and conditions for any buy now, pay later option because some might charge interest, some might charge late fees, and some might require first payment at time of purchase.

Some third-party travel sites also offer buy now, pay later services, which can be useful if the airline you prefer doesn’t offer the option to buy now, pay later at the checkout.

The process is typically the same as booking through an airline. Search for your preferred ticket option, select it, and then choose the “buy now, pay later” option at the checkout, if available. Again, be sure to read the terms and conditions.

An alternative to using a buy now, pay later arrangement is to book your flight with a 0% introductory APR credit card. This type of card can provide the breathing room you need to pay off larger purchases over time, as long as you pay off the total balance before the intro period ends. Otherwise, interest will begin to accrue.

Another option is to use a credit card that offers the ability to split large purchases into monthly installments with a fixed fee. Plan It^® by American Express, for example, allows eligible Card Members to split up purchases of $100 or more into monthly installments with a fixed monthly fee that’s disclosed up front. Plan length options can vary according to factors like account history, creditworthiness, and purchase amount, and offerings usually range between three and 24 months. Up to three options are offered for each plan. For more on Plan It and how it works, read “Buy Now, Pay Later with Plan It^® by American Express.”

Generally speaking, the best way to pay for a trip is to save up in advance and pay for it in full. That way you don’t have to worry about fees, interest, or debt repayments. But fly now, pay later arrangements can be an effective way to add payment flexibility, especially if you need to take an unexpected flight. Remember, though, that these plans can be financially risky:

• If you don’t expect to be able to make payments on time, you risk being charged late fees, which can add up and contribute to debt.
• If you’re already having a hard time getting out of debt, whether on credit cards or loans, taking on additional monthly payments will only add to that debt, potentially making it harder to pay off.
• The payment arrangement has a high APR. Though not all buy now, pay later plans charge interest, be careful of the ones that do. Always check the terms and conditions. With high fees and interest rates, you may end up paying significantly more for your trip than you would otherwise.

In addition, it might not be wise to take on a buy now, pay later arrangement if it tempts you to spend more than you can afford or stops you from using money for other goals, such as paying off debt or saving for the future.