Don’t have the money for your dream trip? About 15% of people finance United Airlines Vacations packages. Vacation package financing is common, even though the Puritan in me thinks that borrowing money to go on vacation is probably not a good idea most of the time.
Delta Air Lines and American Express are testing out a new airline ticket financing option for Amex cardmembers. And in the mockup being focus grouped there’s a limited-time no fee offer to spread ticket purchase costs out over 12 months (“12 Months Same As Cash”).
I’m told they’re also testing financing for upgrades. That seems like a questionable idea, at least for the consumer. I understand needing credit for a ticket purchase in an emergency (more than, say, a vacation). The use case for buying a ticket and then deciding to finance an upgrade seems more… limited.
Soon your job will be your credit.
Delta already offers financing for air and hotel package travel. While “immediate payment” is currently required at Delta.com for ticket purchases, there is already an option for Paypal credit financing.
Many years ago I wrote that credit card rewards aren’t for you unless you’re able to pay your cards off each month – and the cards themselves don’t encourage spending more than you otherwise would. I like to think that’s how we all behave, but the numbers suggest otherwise.
A no cost financing option aside, since it’s just limited time, if you’re financing ticket purchases you probably shouldn’t be doing it on an airline credit card – even with a discount offer on the interest rate.
And monthly payments for a flight upgrade is almost enough to make one sympathize with bad advice from Dave Ramsey.