Bill me Later?

[bigtim]

After a little checking, I found out Bill Me Later is a program run by CIT Bank, the same issuers of Dell credit:

CIT Bank - Bill Me Later

[Watchmann]

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@Anonymous wrote:

Bill Me Later provides a few options:

1.  AMEX style PIF charge.  Pay end of month, if you want.

2.  Make payments.  The APR last I checked is 19.99%, so it isn't a low rate, but there are many cards now higher.

3.  Take an interest free promo which can be from 3 months to 12 months, depending on the merchant and offer.  It's like CareCredit interest free promos...dictated by the retailer.

In all cases you have the option to PIF or make payments like a normal CC.  If you go with an interest free promo, then you get to make payments without cost over a few months to a year.

Many retailers will offer, through BML, various discounts and purchase incentives.

BML does not report a TL, so no balances to hit your util, number of balances or show up as a new account.

Hope that answers your question

Message Edited by txjohn on 01-24-2010 07:10 AM

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Thanks for the capsule summary.  That is pretty much what I gathered when I looked at the system.  I don't think it holds too much for PIF type people or those with long established credit, but might be an option for those that don't want activity showing up on their credit file, or don't have access to much credit and they need to buy something. 

[Watchmann]

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@bigtim wrote:

After a little checking, I found out Bill Me Later is a program run by CIT Bank, the same issuers of Dell credit:

CIT Bank - Bill Me Later

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But the system is owned by Paypal and by default, eBay.  Looks like CIT bank administers it for Paypal.

From their website:

Who is Bill Me Later?
Founded in 2000, Bill Me Later was acquired by eBay Inc. in 2008.

Bill Me Later delivers a smart, safe and speedy solution for shoppers and an attractive alternative payment solution for merchants. The Bill Me Later, Inc. network includes more than 1000 online stores, catalogs and travel partners including Apple, Borders, Blue Nile, Bluefly, Continental Airlines, Fujitsu, JetBlue, Overstock, QVC, Toshiba, Toys "R" Us, US Airways, Walmart.com and Zappos. Millions of consumers rely on the safety and convenience of Bill Me Later's payment solutions when shopping online, via phone and in-store.

Bill Me Later is a PayPal company headquartered in Timonium, MD with additional offices in Hunt Valley, MD and San Francisco, CA. Bill Me Later is offered through CIT Bank, Salt Lake City, Utah

Message Edited by Watchmann on 01-24-2010 10:19 AM

Message Edited by Watchmann on 01-24-2010 10:19 AM

[bigtim]

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@Watchmann wrote:

But the system is owned by Paypal and by default, eBay.

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Hehee... A lot of pockets to line. From CIT Bank: Bill Me Later, a program issued by CIT Bank and managed by I4Commerce, Inc.,

So, let's see if I have this right: Owned by Paypal, who is owned by eBay, the program is "issued" by CIT Bank, and "managed" by I4Commerce, and it serves many, many retailers...

[marty56]

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@Watchmann wrote:
I don't think it holds too much for PIF type people or those with long established credit, but might be an option for those that don't want activity showing up on their credit file, or don't have access to much credit and they need to buy something. 

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Of course cash is always king but I did get a discount on the purchase and anytime someone is offering you free money for just an INQ which could be FICO score neutral and no FICO score impact for revolving a balance for 6 to 12 months.

It's a great deal regardless of how long their credit history is and how much credit you have.  Mine is 30 years and I have more credit than I could ever use safely.

Those who are cash rich could take the money and stick it into a 12 month CD and make a little extra cash, all on someone else's dime.

[Anonymous]

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@bigtim wrote:

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@Watchmann wrote:

But the system is owned by Paypal and by default, eBay.

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Hehee... A lot of pockets to line. From CIT Bank: Bill Me Later, a program issued by CIT Bank and managed by I4Commerce, Inc.,

So, let's see if I have this right: Owned by Paypal, who is owned by eBay, the program is "issued" by CIT Bank, and "managed" by I4Commerce, and it serves many, many retailers...

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How is any of this different than any number of CC's?

For example, a FIA issued card, managed by another bank or CU, through the VISA or MC network, accepted by many, many retailers.  Add all of those layers to PayPal or Clickbank who administers or handles the transaction of payment of the aforementioned Visa/MC/Discover/AMEX multi-layered financial machine.

There is no more cost in using Bill Me Later than any other CC.  Ebay has actively been increasing its online bill payment and electronic financial transaction business for years.

Bill Me Later costs nothing to the consumer if they PIF.  It costs the consumer nothing if they use an interest free promo and pay off within that time frame.  It costs a market comparable APR for those who don't PIF and pay over time beyond interest free periods.

I'm not sure I understand the questions or suggestions 

IMO

[creditwherecreditisdue]

Meanwhile, CIT is a mess:

     http://online.wsj.com/article/SB125709781695721315.html

[bigtim]

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@Anonymous wrote:

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@bigtim wrote:

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@Watchmann wrote:

But the system is owned by Paypal and by default, eBay.

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Hehee... A lot of pockets to line. From CIT Bank: Bill Me Later, a program issued by CIT Bank and managed by I4Commerce, Inc.,

So, let's see if I have this right: Owned by Paypal, who is owned by eBay, the program is "issued" by CIT Bank, and "managed" by I4Commerce, and it serves many, many retailers...

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How is any of this different than any number of CC's?

I'm not sure I understand the questions or suggestions 

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This might explain why "you don't understand the question or suggestions" - because there weren't any - not from me anyway. Just giving some info. In fact, I might use the service myself sometime. I like the idea of an extra line of credit that doesn't report the account. My AAoA is in the gutter...

Message Edited by bigtim on 01-24-2010 08:14 PM

[Watchmann]

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@bigtim wrote:

This might explain why "you don't understand the question or suggestions" - because there weren't any - not from me anyway. Just giving some info. In fact, I might use the service myself sometime. I like the idea of an extra line of credit that doesn't report the account. My AAoA is in the gutter...

Message Edited by bigtim on 01-24-2010 08:14 PM

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Same here, no questions or suggestions.  For those with strong credit who have the cash I can't see where BML is that much of a good deal (cash is king in all instances).  For those that don't want, or can't afford, a hit on their FICO score BML can be of some help.  It really is no different than in the 'good old days' when someone would head down to their local merchant for a line of credit on a washer, fridge, car, or other consumer item.  BML just has expanded it to a lot of the 'unbanked' public, which is a huge number in this country.  It's a market that has a need.

[score_building]

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Watchmann wrote:

Same here, no questions or suggestions.  For those with strong credit who have the cash I can't see where BML is that much of a good deal (cash is king in all instances).  For those that don't want, or can't afford, a hit on their FICO score BML can be of some help.  It really is no different than in the 'good old days' when someone would head down to their local merchant for a line of credit on a washer, fridge, car, or other consumer item.  BML just has expanded it to a lot of the 'unbanked' public, which is a huge number in this country.  It's a market that has a need.

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From the outset BML was created (and to some extent still serves) as a lending tool for relatively high income/ fico scoring individuals for online purchases sans cc--it is not easily accessible to the subprime, 'unbanked' public, who may not qualify for the product upon app.