If you shop online there’s a good chance you’ve seen the “Bill Me Later” option during checkout. Your curiosity got the best of you and now you might be wondering: How does “Bill Me Later” work?
Before using this feature at checkout it is important to understand how the billing process works. Will you get charged extra fees or outrageous interest rates? Is this service too good to be true?
Below we talk about the advantages of this service, how it works, and where it’s accepted online. We also discuss how it could affect your credit and why this credit line may be an advantage over opening another credit card.
What is Bill Me Later?
Let’s start with the basics. Bill Me Later is a consumer credit alternative similar to a credit card. The service provides financing to consumers for purchases online or over the phone.
According to their website:
“Bill Me Later is a convenient and secure way to pay on the web or over the phone.”
This can be a great financing option for consumers that prefer not to pay with a credit card. They provide 6 to 12 month financing with no interest, similar to an introductory credit card offer.
How Does Bill Me Later Work?
To use this during checkout it only requires some basic information. You must provide your date of birth and the last 4 digits of your social security number. Then, you’ll be required to accept the financing terms.
Before the purchase is complete Bill Me Later will evaluate your creditworthiness. You’ll be given at least $250 of “buying power” (credit limit) if you’re approved.
If using Bill Me Later for the first time you may be given 6 month no interest financing. During this period no payments are required and no interest is charged on the balance.
To avoid interest charges the balance must be paid in full before the introductory period is over. After the 6 month period is over you can make monthly payments but will also incur finance charges. If you pay the entire balance by the payment due date, you’ll pay no finance charges.
The current Annual Percentage Rate on outstanding balances is 19.99%. There is no annual fee or finance charges for using Bill Me Later when paying off a balance in full each month. However, interest will be charged to your account from the purchase date if the purchase balance is not paid in full within 6 months.
If you happen to pay late, you could receive a late fee of up to $35.
It should be noted that your account may be subject to periodic reviews of your credit. These reviews, although visible to you, do not impact your credit score and are not visible by credit grantors. Bill Me Later can lower your credit line at any time based on these reviews.
Bill Me Later Stores & Merchants
Now the important part: where can you use Bill Me Later? The good news is that it’s accepted by over 1000 online stores, catalogs and travel partners, including those that accept PayPal. In addition, it can be used at major online retailers like Amazon, eBay, Walmart and Overstock.
During checkout just select Bill Me Later before filling out your payment information. You will be required to give your date of birth and the last 4 digits of your social security number. Approval is fast and easy.
Featured online retailers:
- Apple Store
What if a retailer doesn’t offer Bill Me Later? While there are many credit alternatives available, a comparable option would be a credit card with a no interest introductory offer. Consider reading our credit card reviews for more options.
Bill Me Later Review
Looking for more information about short term financing? Consider reading our in-depth reviews where we discuss the pros and cons of using short term financing to buy the things you want.
Find out what your options are if you do not qualify for enough “buying power” and what you can do about it.