American Airlines Offers 6 Month No Interest No Payments Financing

American Airlines is offering no interest no payments for 6 months on airline tickets purchased through an offer on their website. This means that, essentially, one can purchase an airline ticket in the same way that one purchases, say, furniture or a camcorder.

The typical “No Payments No Interest” store credit rules apply. You have 6 months to pay off the tickets. If you don’t, American Airlines will charge you interest from the date of purchase at up to 26.05%. You do not want that to happen.

Fly Now, Pay Later – 6 Months No Payments, No Interest [AA]

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  1. stopNgoBeau says:

    AirTran has been offering a 90 day version of the same thing, called “Bill Me Later”. I’d rather not take a bump in my credit by the inqury or risk my normal forgetfulness.

  2. Beerad says:

    Yeah, I can’t really see that this is worth it, given the potential 26% penalty you’d have to pay for your lapse in memory. Although it might be worth it if you have a ton of expensive flights (like several thousand bucks’ worth) coming up that can all be booked on AA (unlikely, I know). Buy the tickets, throw the cash in an online savings account/short term CD with a good rate, timely pay off the tickets when due and enjoy the free interest on an expense you had to pay anyways.

    Again, not a huge benefit unless you’re planning on circumnavigating the globe, but could be useful in a few situations.

  3. TWinter says:

    This offer might actually be aimed at low income people with little access to standard credit cards. I know that I’ve seen deals like this advertised by airlines in Mexico – round trip to Guadalajara for only eight easy payments.

  4. magic8ball says:

    They’re offering 6 month financing because that’s how long it will take them to actually get you to your destination. The offer would be a lot more tempting if they’d finance my ticket purchase from a different airline.

  5. clarient says:

    This sounds like a horrible idea for consumers and a great idea for the airline.

  6. joeblevins says:

    Can’t really reverse charges if the airline is your finance company. You lose that bargaining chip.

  7. FLConsumer says:

    Has airfare risen THAT MUCH that people have to take out short-term loans to pay for it?

  8. ScramDiggyBooBoo says:

    I can see where it would come in handy. Take the military for example. They go over seas or what not and someone dies, you have 1 grand sitting around to fly from South Korea to New York (that is what it costs, i was stationed there). I dont. It would be nice to do something like this so i can get home, and pay it later. No doubt that the cons outweigh the pros though.

  9. bhall03 says:

    Currently reading The Elegant Solution and came across an interesting story about Mitsubishi, who in 2003 offered a promotion called:

    “‘Zero-Zero-Zero’. Car buyers got a car with no money down, no payments and no interest for one full year.”

    The offer was accepted by thousands of people. Mitsubishi lost almost $500M after the customers drove the car for the year and decided to let them get repossessed rather than pay.

    Any guesses on the Over/Under on this policy getting pulled or significantly modified?

  10. callmereggie says:

    I cannot believe that the airlines are taking advantage of their customers by offering them FREE and FLEXIBLE payment plans.

    I mean if you cannot afford to fly your family to the ancestral plot to bury grandma, then you should of thought about that before you replaced your hot water heater.

    And the 26% interest penalty?

    Come on AA! Creating an incentive for repayment? WTF!

  11. Thrust says:

    Free ‘Subishi car for a year! Sweet, I’ll have mine fully loaded in metalic blue with leather please.

    Is there anything left that isn’t being used to sucker people into credit? “Would you like to pay for your groceries now, or should we just bill you at 27% interest?”

  12. romannose says:

    why not just pay with a 0% intro apr credit card?

  13. philipbarrett says:

    It’s the new corporate strategy, we’re really selling credit, the products are merely the vehicle.

  14. Thrust says:

    @philipbarrett: In that case, what’s the credit rating on the purchase of a Sea Harrier? And can I get it with a custom spoiler?

  15. FLConsumer says:

    @philipbarrett: You’ve nailed it.

    I still wonder when the whole economy’s going to tank because everyone’s overextended. People can’t keep borrowing forever.

  16. bnissan97 says:

    The movie “Maxed Out”

  17. Thrust says:

    @FLConsumer: Why not? The United States Government is leading the way with abuse of credit. The US has borrowed so much money from everywhere and everyone that it can’t ever get out of the red. The only reason nobody ends their borrowing is that all world currency is tied to the USD, and if the US goes tits up, everyone does. And so we keep lending em more.