United has a PAYMENT PLAN?

Old Nov 8, 19, 10:17 am
  #1  
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United has a PAYMENT PLAN?

This is a first... or I've just been blind. Just noticed this as I was getting ready to book my next expensive economy flight....

Now folks can borrow to go on vacation. That's just lovely. At the fine rate of 15%. Considering this is probably an unsecured loan, United is leveraging themselves by quite a bit if/when the economy goes south. Guess it's better than credit card rates, but I never thought United would turn into a non-predatory-but-still-very-expensive-considering-upfront-fee lender. Big raspberry to Chase, too.


Last edited by ryman554; Nov 8, 19 at 11:09 am
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Old Nov 8, 19, 10:27 am
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Does this allow payments to continue after the flight/vacation has been completed? Or does it require all payments to be made prior to the flight/vacation. If the latter, UA is pretty completely secured. If the former, what happens if the customer defaults after several payments have been made?
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Old Nov 8, 19, 10:30 am
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Hadn't seen that before.

More here:

https://www.united.com/ual/en/us/fly...ht/uplift.html

"Travel now and pay over time with Uplift."

and

https://www.flyertalk.com/articles/u...pay-later.html


"Speaking out about the collaboration, Praveen Sharma, VP of Digital Products and Analytics, United, said, “We began offering Uplift Pay Monthly in 2017 with United Vacations and received great feedback from our customers about the option to pay over time. Expanding Uplift’s flexible purchase option to flight tickets now allows even more customers to travel the world and create memories that will last a lifetime.”

Offering his comments, Brian Barth, CEO of Uplift, said, “Our mission to make travel more accessible, affordable and rewarding for everyone perfectly aligns with United’s purpose.....


(bolding mine)

"More affordable"? How is that more affordable? By definition, that would make is LESS affordable, no?
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Old Nov 8, 19, 10:33 am
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Originally Posted by seenitall View Post
Does this allow payments to continue after the flight/vacation has been completed? Or does it require all payments to be made prior to the flight/vacation. If the latter, UA is pretty completely secured. If the former, what happens if the customer defaults after several payments have been made?
I assume Uplift is assuming the risk of default, not United.
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Old Nov 8, 19, 10:56 am
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Originally Posted by seenitall View Post
Does this allow payments to continue after the flight/vacation has been completed? Or does it require all payments to be made prior to the flight/vacation. If the latter, UA is pretty completely secured. If the former, what happens if the customer defaults after several payments have been made?
Nope, you can take your trip and then pay for the rest/most of it.

As to what happens afterwards? Collections? Bankruptcy?

Originally Posted by findark View Post
I assume Uplift is assuming the risk of default, not United.
Probably true, so I should rescind the comment above. And I guess UA gets more profit from selling forward the loan, too, so somebody else can bank the interest.

It just makes me sad...

Originally Posted by narvik View Post
Hadn't seen that before.
"More affordable"? How is that more affordable? By definition, that would make is LESS affordable, no?
To those that understand math, you are absolutely correct.

However, the general public does not understand math, and have been trained to always buys things based on how much per month (houses, cars, ...) it costs. They think on a cash-flow basis, and $200 a month is a smaller ding than a big $3000 hit all at once. Of course, nobody suggests that folks should actually, you know, *save* that $200 a month and THEN go on a vacation. That's too hard.

Last edited by WineCountryUA; Nov 8, 19 at 11:16 am Reason: merged consecutive posts by same member
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Old Nov 8, 19, 11:18 am
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I saw that as well. Out of curiosity I clicked thru the details to find out, that APR can spike up to 35% !!!
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Old Nov 8, 19, 11:50 am
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Not everyone has thousands of dollars to spend upfront but could swing an expensive ticket if spread over a reasonable amount of time. That is the whole point of credit. Options are good thing, The interest rate being charged is intended to cover the credit risk being assumed.
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Old Nov 8, 19, 12:00 pm
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Originally Posted by rch4u View Post
Not everyone has thousands of dollars to spend upfront but could swing an expensive ticket if spread over a reasonable amount of time. That is the whole point of credit. Options are good thing, The interest rate being charged is intended to cover the credit risk being assumed.
Or doing it the "old fashion" / Dave Ramsey way: gradually save away funds, until cash payment is possible ..... and saving a whole bunch of interest along the way.

To each his/her choice.
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Old Nov 8, 19, 1:24 pm
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Originally Posted by cesco.g View Post
Or doing it the "old fashion" / Dave Ramsey way: gradually save away funds, until cash payment is possible ..... and saving a whole bunch of interest along the way.

To each his/her choice.
This is no doubt the best way. If people followed this and acted like grownups, the country wouldn't be in such a financial mess. If you can't afford to pay cash, you can't afford to go...so don't go.
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Old Nov 8, 19, 1:33 pm
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Such a poor financial decision but I am not surprised to see this. People have been maxing out their credit cards (or tapping a HELOC) to go on vacations for years.
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Old Nov 8, 19, 1:36 pm
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Originally Posted by cslovacek View Post
This is no doubt the best way. If people followed this and acted like grownups, the country wouldn't be in such a financial mess. If you can't afford to pay cash, you can't afford to go...so don't go.
Would you tell that to someone whose loved one in a far-off location was on their death bed? Doubtful, and does not necessarily have anything to do with being a "grown up." Again, options and credit, used responsibly, are good things. We don't know other folks' situations.
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Old Nov 8, 19, 2:01 pm
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Originally Posted by narvik View Post
Offering his comments, Brian Barth, CEO of Uplift, said, “Our mission to make travel more accessible, affordable and rewarding for everyone perfectly aligns with United’s purpose.....


(bolding mine)

"More affordable"? How is that more affordable? By definition, that would make is LESS affordable, no?
Because many people don't understand that just because they can't pay for something all at once, doesn't mean paying even more for the same thing over a period of time is actually affordable. Satisfaction today, regret later, rinse, repeat, recession.

The satisfaction of being able to afford paying for something special will add a sense of pride in more than equal measure than the stress of being up to your eyeballs in debt for 12 months to take a "vacation."
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Old Nov 8, 19, 2:03 pm
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The loss of points/miles using this?! Absolutely not
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Old Nov 8, 19, 2:32 pm
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If you pay for your ticket/vacation with a credit card, you have the opportunity to pay for it over time. Therefore, this offer must either be directed towards pax with no credit cards, or no credit cards with payment terms better than Uplyft's.
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Old Nov 8, 19, 2:34 pm
  #15  
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I get it—not saying it’s ideal, but for a flight you have to take…wedding, graduation, etc. --we should consider ourselves fortunate we wouldn’t have to use this option. There’s another company in this space I believe that you can purchase any flight with—it would definitely make better sense to just pay the interest on a rewards card, but I suspect the target demo for this doesn’t have the credit profile for a card.
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