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.
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 19.99 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.