U.S. Bank Launches New Credit Card Focused on ‘Buy Now, Pay Later’

Buy now, pay later companies have been growing in number recently, and now U.S. Bank seeks to capitalize on this trend by launching the U.S. Bank Split™ World Mastercard^®.

Here is a look at how the new card works and what differentiates it from other credit cards.

How the U.S. Bank Split Card Works

If you’re wondering, don’t all credit cards operate under a “buy now, pay later” model? Technically, yes, given that you aren’t responsible for paying for the balance of your purchases until your credit card statement posts, which may be days or even weeks after the purchases were made.

Furthermore, if you don’t pay your statement balance in full, you could carry some of that balance forward into future months. You’d be charged interest on the outstanding balance, but it would prolong your ability to “pay later.”

The U.S. Bank Split card, however, allows you to “buy now, pay later” with no fees and no interest on all purchases for a 3-month payment plan.

How does this work? Essentially, all purchases made with the card are automatically divided into 3 payments and placed into a payment plan for you to repay over 3 months, with no plan fee and no interest accrued.

If needed, you can extend your payment plans to 6 or 12 months with equal monthly payments with no interest, for a fixed monthly plan fee.

Is The New U.S. Bank Split Card Worth It?

The new U.S. Bank Split card comes with no annual fee, but it also doesn’t earn rewards on all purchases made.

While there is some uniqueness here in terms of payment flexibility, we always recommend paying your statement balance off in full when it posts to avoid accruing credit card debt. Additionally, there are already many credit cards on the market that offer a 0% intro APR on new purchases for anywhere from 12 to 24 months, depending on the card offer.

Some of these cards with 0% intro APR offers, like the Chase Freedom Unlimited^® and the Blue Cash Everyday^® Card from American Express, even earn rewards, allowing you to finance large purchases over a set amount of time with 0% interest while still earning cash-back.

Final Thoughts

The new U.S. Bank Split card is certainly an interesting concept by offering a revolving “buy now, pay later” model on every purchase you make with the card, but assuming you’re not overspending and paying your statement balance in full each month, you’d be much better off opting for a credit card that earns rewards.