Amex Plan It

[Holidayguy]

I took out my BAPP card on 31/03/24 and bagged the Companion Voucher this week while the target spend was still at £10k. So now any spending until April 2025 won’t go towards my next voucher. I think I’ll probably hit the £15k target next year but it would probably cement it if I was able to pay for my summer 2025 holiday on my card, but I always like to book early. I was thinking of booking something in January or February and using the Amex Plan It scheme, taking it out over 12 months, then cancelling the plan in April and paying off the balance. My thinking is that they would only apply the Avios for the amount you pay each month. This would mean I would sacrifice approximately 600 Avios but I would have a wider choice of holidays. Am I correct on this or would they still apply the full Avios the day I book the holiday?

[NorthernLass]

Don’t you get charged interest with Plan It? Why don’t you book a holiday package where you don’t have to pay the balance until a few weeks before you travel (5 weeks before in the case of BA Holidays)? Then you’d save the interest (and also earn 3 avios per £1 if you did book with BA).

[Holidayguy]

I thought it was interest free, NL. BA Holidays aren’t the most convenient when you’re starting from Belfast and the like of TUI and the cruise lines want paid 12 weeks prior to departure. Do you know if my assumption about how they would apply Avios is correct?

[Tony5896]

It’s interest free, however there is a charge using the calculator it’s approx £10 per £1000

[NorthernLass]

I knew it wasn’t a free service, it was discussed here when it was first introduced as a blatant cash grab by Amex.

I don’t know how it works with the awarding of avios, or even if you get any at all under this system.

BAH’s aren’t really for convenience, they are for double TPs and handy payment terms!

[philuk]

You will receive the full Avios the day you make a transaction. If you apply for Plan It, you will pay the balance and fees over time.

[hw-99]

Holidayguy wrote:

I took out my BAPP card on 31/03/24 and bagged the Companion Voucher this week while the target spend was still at £10k. So now any spending until April 2025 won’t go towards my next voucher. I think I’ll probably hit the £15k target next year but it would probably cement it if I was able to pay for my summer 2025 holiday on my card, but I always like to book early. I was thinking of booking something in January or February and using the Amex Plan It scheme, taking it out over 12 months, then cancelling the plan in April and paying off the balance. My thinking is that they would only apply the Avios for the amount you pay each month. This would mean I would sacrifice approximately 600 Avios but I would have a wider choice of holidays. Am I correct on this or would they still apply the full Avios the day I book the holiday?

This does depends entierly on where you are booking/staying, however maybe look for travel agents/hotels that offer BNPL. Or that only take a small deposit, then settle the balance with Amex once your year resets.

[JDB]

NorthernLass wrote:

I knew it wasn’t a free service, it was discussed here when it was first introduced as a blatant cash grab by Amex.

Is it a “blatant cash grab” or just one of the standard ways financial institutions make money – charging fees and/or interest. There’s usually a price to pay if you wish to use someone else’s capital to fund your purchases.