The new U.S. Bank Split World Mastercard looks like a credit card, but works like a buy now, pay later plan. The $0-annual-fee card divides purchases into equal monthly payments for a set period of time.
Otherwise, you won’t earn rewards when you use the card, and there’s no welcome bonus for new cardholders.
How the U.S. Bank Split World Mastercard works
Every purchase you make is automatically converted into a three-month payment plan with no interest charges or fees. Purchases of $100 or more will become one payment plan. If you make purchases under $100, they’ll be combined at the end of the billing cycle into one payment plan.
While a three-month repayment period is the default, you can extend eligible plans to six or 12 months, but you’ll owe a fixed monthly plan fee. You’ll be able to see what the fee would be when you explore your options for extending your plan, which you can do online or through the U.S. Bank app.
Note that a payment plan made up of multiple purchases under $100 is not eligible to be extended past three months. And while you can’t cancel a plan or shorten its length, you can pay off a plan early if you’re able to.
Alternative options
Several credit card issuers offer installment plans, including U.S. Bank, Chase, American Express and Citibank. Depending on the issuer and their payment plan options, you may be subject to plan fees, but you also may earn rewards on that purchase if it’s on a rewards-earning card.
Cards from Upgrade, a financial technology company, also convert purchases into monthly installment plans, and some of their cards earn rewards. However, you’ll pay a fixed interest rate.
