Bill Me Later, now called PayPal Credit, is a service that allows users to make purchases online using a line of credit. Although Bill Me Later works like a credit card, with minimum payments due until an item is paid for in full, it doesn't require users to have an actual card. Bill Me Later can be connected to other online financing applications, such as PayPal. Because Bill Me Later extends a line of credit, a relatively high credit score is required for approval.
While there is no set minimum credit score requirement for Bill Me Later, there are reports of applicants getting approved with a score as low as 600.
What Is Bill Me Later?
PayPal uses its credit line to allow shoppers to purchase items now and pay later. Unlike a credit card, Bill Me Later charges no interest on purchases of $99 or more as long as you pay off the full amount within six months. Your purchase will be broken into six monthly installments, making it easier for you to make large purchases on sites like eBay. At the end of the six months, if you haven't paid the full amount, you'll be charged interest at an APR of 25.99 percent going all the way back to the posting date.
Credit Score Requirements
According to credit information site Credit Score Pro, the average credit score for people who are approved for Bill Me Later is 720, while the average credit score across the nation is in the high 600s. Some people report being approved with a credit score as low as 600, though, so you may still qualify. If you have poor credit or a limited credit history, you probably won't be approved for Bill Me Later.
Other Credit Requirements
Bill Me Later offers an unsecured line of credit. This means that the loan is not tied to a car, house or something else that can be repossessed. Because of this, you must have a nearly spotless credit history to be approved. Bill Me Later representatives review applicants' credit reports for negative actions, late payments, accounts in collection or other signs of poor money management.
Credit Line Increases
The minimum credit line for Bill Me Later is $250, but if your first purchase using it is more than $250, your credit line will automatically be set at that amount. Each time you use Bill Me Later for a purchase, the service considers this a request for more credit and may re-evaluate your credit report. The service also requests updates from the credit bureaus periodically, even if you aren't using the service. If your credit score worsens, you may be denied credit line increases. or your account may be canceled.
Reapplying -- at a Cost
If you've been denied for Bill Me Later in the past and your credit has changed, you can reapply. However, every time you request a new line of credit, your credit score is negatively affected.
- PayPal Credit: Sign In
- Credit Score Pro: What Credit Score is Needed for Paypal Bill Me Later
- PayPal Credit: Terms & Conditions of the PayPal Credit Payment System
- Experian. "How Often Is a Credit Report Updated?" Accessed April 15, 2020.
- Experian. "Credit Score Can’t Be Calculated." Accessed April 15, 2020.
- Consumer Financial Protection Bureau. "Who Are the Credit Invisible?" Accessed April 15, 2020.
- Experian. "What Is a Credit Utilization Rate?" Accessed April 15, 2020.
- First General Bank. "How to Read Your Credit Report," Page 1. Accessed April 15, 2020.
- Consumer Financial Protection Bureau. "Credit Score Myths That Might Be Holding You Back From Improving Your Credit." Accessed April 15, 2020.
- National Credit Union Administration. "Credit Card Payments." Accessed April 15, 2020.
- FICO. "Payment History." Accessed April 15, 2020.
- Equifax. "When Does a Late Credit Card Payment Show up on Credit Reports?" Accessed April 15, 2020.
- Consumer Financial Protection Bureau. "What's a Credit Inquiry?" Accessed April 15, 2020.
- Experian. "What Is a Hard Inquiry and How Does It Affect Credit?" Accessed April 15, 2020.
- Federal Trade Commission. "Credit Scores - What Can You Do to Improve Your Score?" Accessed April 15, 2020.
- Time. "This Man Has 1,497 Credit Cards and Near-Perfect Credit Score." Accessed April 15, 2020.
- Guinness World Records. "Largest Collection of Valid Credit Cards." Accessed April 15, 2020.
- FICO. "The Importance of Credit History Length." Accessed April 15, 2020.
- Experian. "750 Credit Score: Is it Good or Bad?" Accessed April 15, 2020.
Miranda Morley is an educator, business consultant and owner of a copywriting/social-media management company. Her work has been featured in the "Boston Literary Magazine," "Subversify Magazine" and "American Builder's Quarterly." Morley has a B.A. in English, political science and international relations. She is completing her M.A. in rhetoric and composition from Purdue University Calumet.