Pay Pal Bill Me Later Review: The Pros and Cons of This Payment Option

Pay Pal’s Bill Me Later service now called PayPal Credit allows consumers to make purchases online and pay for them at a later date without interest. This service essentially functions as a short-term loan, providing access to credit for online shopping. While Bill Me Later can provide convenience and flexibility, it also comes with some drawbacks that consumers should consider carefully before using it. This comprehensive review covers the key pros and cons of Pay Pal Bill Me Later.

How Does Bill Me Later Work?

Bill Me Later, now PayPal Credit, is marketed as a flexible and convenient way to pay for purchases made from merchants that accept PayPal online. With Bill Me Later, instead of paying upfront with a credit or debit card, you can opt to be billed for the purchase at a later date. Essentially, Bill Me Later provides you with a short-term loan for your purchase.

When you choose Bill Me Later at checkout, PayPal fronts the payment to the merchant immediately. You will then receive a bill from PayPal Credit within a few days outlining your payment terms. If your purchase total is less than $99, your payment will be due in full by the next billing period. For totals above $99, you have six months to pay before interest is charged.

The Main Pros of Using Bill Me Later

There are some advantages to using the Bill Me Later service:

• Deferred Payment: With Bill Me Later, you don’t have to pay for your purchase immediately. This can help consumers spread out payments and manage cash flow.

• No Interest Option: Purchases over $99 qualify for six months of interest-free financing when using Bill Me Later. This gives you time to pay off the balance.

• Wide Acceptance: Millions of online merchants accept Bill Me Later through PayPal, giving you ample opportunity to use it.

• Added Security: PayPal keeps your financial information private when using Bill Me Later. The merchant never sees your credit card or banking information.

• No Annual Fee: There is no yearly fee to have a Bill Me Later account, which makes it free to use if you pay it off promptly.

The Potential Downsides of Bill Me Later

However, there are also some important drawbacks and risks to consider with Bill Me Later:

• Credit Checks: PayPal will do a credit check before approving you for Bill Me Later, which can negatively impact your score.

• High Interest Rates: The APR if you don’t fully pay off your balance is quite high at nearly 24%. This can make the service expensive if used improperly.

• Payment Tracking: You have to closely monitor payment due dates to avoid interest charges or late fees. It’s not as simple as automatic credit card payments.

• Credit Limit: Your credit limit may be low when you first get approved, restricting the convenience and usefulness of Bill Me Later.

• Spending Temptation: The deferred payment ability might tempt some consumers to overspend using Bill Me Later.

• Late Fees: PayPal can charge up to $39 for late payments on your Bill Me Later account, which can add up quickly.

Bill Me Later Reviews: What Users Have to Say

In reviewing online forums, consumer sites, and comments, Bill Me Later earns very mixed reviews from users:

• The vast majority of recent user reviews on ConsumerAffairs.com rate Bill Me Later/PayPal Credit just 1 out of 5 stars. Customers frequently complain about terrible customer service, difficulty paying off balances, and intentionally tricky policies from PayPal Credit.

• Looking at posts on the PayPal Community forums over the years shows a slightly more balanced perspective. Some customers share positive experiences getting approved for Bill Me Later when having bad credit or getting an initial credit line. However, many others report issues with declined transactions, hidden fees, and unhelpful customer service agents when trying to resolve problems.

• On Quora, the pros highlighted by users include the ability to make emergency purchases with deferred payment and the wider acceptance of Bill Me Later compared to store financing options. However, users also caution about high interest rates after the six month promo period and warn that Bill Me Later is essentially taking out a small loan rather than a credit card.

Is Bill Me Later Worth It? Final Thoughts

Overall, feedback on Bill Me Later is decidedly mixed, with both benefits and potential hazards for consumers to weigh carefully. Here are some final pros and cons to guide your decision about whether to try Bill Me Later:

Pros

• Delayed payment flexibility
• Interest-free option on bigger purchases
• Accepted widely at online merchants

Cons

• Credit checks required
• Very high interest rates after promos
• Need to monitor payment dates closely
• Low initial credit limit
• Can tempt overspending behaviors

For consumers who are disciplined, diligent about payments, and want to space out the cost of larger online purchases, Bill Me Later can be a decent option. However, given the very high long-term interest rates and poor customer service reputation, it may be best suited for one-time deferred payment scenarios, rather than as an ongoing credit line. Carefully consider your financial situation and spending habits before applying.