Pay Pal Bill Me Later Review: Everything You Need to Know

Pay Pal’s Bill Me Later service, now called PayPal Credit, allows shoppers to make purchases online and pay for them at a later date with zero interest if paid in full within 6 months It acts as a reusable line of credit specifically for PayPal purchases I reviewed Bill Me Later based on my own experience as a customer as well as research from consumer review sites. Here is a comprehensive guide on how Bill Me Later works along with its pros, cons, fees, and what customers have to say about it.

How Bill Me Later Works

Bill Me Later, now PayPal Credit, is a digital credit line provided by PayPal and Synchrony Bank that can be used for purchases from merchants that accept PayPal online It allows you to buy now and pay later in 6 months with zero interest if paid in full.

Here’s how it works

• Apply for a Bill Me Later credit line through your PayPal account. The credit line amount varies but is often between $250-$5000.

• If approved, you can use your Bill Me Later credit line to checkout with PayPal. Simply select Bill Me Later as the payment option.

• The purchase amount gets charged to your Bill Me Later account. You’ll receive a billing statement with payment terms.

• For purchases over $99, you get 6 months to pay with no interest. Otherwise interest of 19.99%-29.99% applies.

• Make monthly minimum payments or pay the balance off in full. If not paid in full within 6 months, deferred interest kicks in.

Essentially, Bill Me Later gives you short-term financing for online purchases while allowing you to delay payment. It’s a convenient way to spread out costs interest-free if paid on time.

Pros of Bill Me Later

Here are some of the main benefits of using Bill Me Later for online shopping:

• No annual fees: There are no annual or monthly fees to maintain a Bill Me Later account.

• 0% interest financing: Qualifying purchases over $99 get 6 months of no interest financing if paid in full. This helps budget large purchases.

• Wide acceptance: Millions of online stores accept Bill Me Later through PayPal checkout.

• Flexible payments: You can pay the minimum or full balance each month.

• No impact to credit limit: Bill Me Later has its own separate credit limit for purchases.

• Added purchase protection: PayPal offers purchase protection and return shipping coverage.

• Obscured personal info: Bill Me Later keeps your personal and payment info private during checkout.

Cons of Bill Me Later

However, there are some potential drawbacks to be aware of:

• Credit check required: Applying requires a soft credit check which can impact your score.

• Missed payment fees: A late fee up to $39 applies if you miss the minimum payment.

• Deferred interest: Interest accrues from day one if not paid in full within 6 months.

• Limited rewards: There are no significant rewards or cashback offered for purchases.

• May encourage overspending: Access to easy credit can lead some to overspend.

• Account closure: Your line may be lowered or closed suddenly per terms.

While the no interest financing offer is appealing, make sure to pay on time and in full to avoid deferred interest fees. And be cautious of overspending just because you have access to a line of credit.

Fees and APR for Bill Me Later

Here are the common fees and interest rates associated with a Bill Me Later account:

• Annual fee: $0

• Minimum interest charge: $2

• APR: 19.99% to 29.99% variable

• Late payment fee: Up to $39

• Balance transfer fee: None

• Cash advance fee: Not available

• Over limit fee: None

• Foreign transaction fee: None

As you can see, there are no annual, over limit, balance transfer or foreign transaction fees. But interest rates are quite high if you don’t pay in full within the promo period. Late fees also apply if you miss the minimum payment due.

What Customers Have to Say

According to various consumer review sites, Bill Me Later receives mixed reviews from customers regarding customer service, abrupt account closures, and issues with deferred interest and fees.

On ConsumerAffairs.com, Bill Me Later currently has a 1.1 out of 5 star rating based on 747 reviews. 94% of reviewers give it just 1 star. Many complain of terrible customer service, hidden fees, and shady practices.

On the PayPal community forums, users also report issues with declines, Random account closures, billing errors, and poor communication from Bill Me Later customer service reps.

However, when used properly Bill Me Later does offer a convenient way to spread out payments interest-free. Just be sure to pay on time and watch out for deferred interest fees. Consider starting with a low credit limit until you better understand how it works.

Who Is Bill Me Later Good For?

Bill Me Later can be a useful financing option in certain situations if used responsibly:

• Good for those with good credit seeking extra purchasing power. Approval is credit-based.

• Helpful for expensive online purchases to spread costs over time.

• Handy for those looking to consolidate PayPal purchases into one bill.

• Useful for budgeting and planning expenses with future payment dates.

However, it may not be ideal for those with bad credit or who can’t confidently pay their balance in full. The high deferred interest rate also makes it risky for larger balances.

Overall, Bill Me Later offers a unique way to delay payment on online purchases. But it comes with caveats like credit checks, potential fees, and complex terms. Be sure to read the fine print and pay on time. Consider starting small to test it out. With responsible use, it can provide convenient financing and budgeting flexibility.

The Bottom Line

Bill Me Later, now called PayPal Credit, allows you to buy online and pay later with no interest for 6 months on purchases over $99. It offers a reusable line of credit for PayPal purchases with no annual fee. However, it does require a credit check and charges deferred interest if not paid in full.

Customer reviews are mixed, citing issues with customer service and abrupt account closures in some cases. But used properly, it can help budget large online purchases interest-free. Just be sure to pay on time and watch out for fees to avoid problems. Start small and use Bill Me Later selectively for optimal financing flexibility.