Credit with BillMeLater

[bronzebeauty]

I started using BillMeLater last summer to pay for certain large purchases, the largest being no more than $600.  I use this method of payment to take advantage of the no interest for six months or 90 days or whatever.  I have paid them off before they would come due which would then include the tacked on interest from the past six months or 90 days.  I just made a recent purchase of $323, and made a $128 payment toward the balance, leaving $195 balance due.  Seeing that you don't have a credit limit with BML, how would the utilization be calculated? Would it go by the largest past balance due, compared to what it is now? My scores haven't been really affected by this type of account, except for the fact that it is a new account, but am curious.  And, no I don't have any major credit cards.  I have a department credit card with a $50 balance of a $750 limit...keeping the utilization low.  The only other card I have is a PayPal debit/credit card with a limit of $390 reduced from $500 last October...currently don't use, although thinking about it just to show usage, as well as the fact it is a tad older, by one year, than BML.

[Anonymous]

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@bronzebeauty wrote:

I started using BillMeLater last summer to pay for certain large purchases, the largest being no more than $600.  I use this method of payment to take advantage of the no interest for six months or 90 days or whatever.  I have paid them off before they would come due which would then include the tacked on interest from the past six months or 90 days.  I just made a recent purchase of $323, and made a $128 payment toward the balance, leaving $195 balance due.  Seeing that you don't have a credit limit with BML, how would the utilization be calculated? Would it go by the largest past balance due, compared to what it is now? My scores haven't been really affected by this type of account, except for the fact that it is a new account, but am curious.  And, no I don't have any major credit cards.  I have a department credit card with a $50 balance of a $750 limit...keeping the utilization low.  The only other card I have is a PayPal debit/credit card with a limit of $390 reduced from $500 last October...currently don't use, although thinking about it just to show usage, as well as the fact it is a tad older, by one year, than BML.

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BML does NOT report to the credit bureaus. It doesn't show up on your report at all, whether or not you have a balance.

[score_building]

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@bronzebeauty wrote:

I started using BillMeLater last summer to pay for certain large purchases, the largest being no more than $600.  I use this method of payment to take advantage of the no interest for six months or 90 days or whatever.  I have paid them off before they would come due which would then include the tacked on interest from the past six months or 90 days.  I just made a recent purchase of $323, and made a $128 payment toward the balance, leaving $195 balance due.  Seeing that you don't have a credit limit with BML, how would the utilization be calculated? Would it go by the largest past balance due, compared to what it is now? My scores haven't been really affected by this type of account, except for the fact that it is a new account, but am curious.  And, no I don't have any major credit cards.  I have a department credit card with a $50 balance of a $750 limit...keeping the utilization low.  The only other card I have is a PayPal debit/credit card with a limit of $390 reduced from $500 last October...currently don't use, although thinking about it just to show usage, as well as the fact it is a tad older, by one year, than BML.

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Billmelater will appear on your credit report in the inquiry section only until the inq expires (after two years).

they do not report an actual tradeline (just an inQ) SO your balances will not be considered as part of your UTIL calculations.  it is essentially a 'hidden tradeline' unless they change this going forward.

[bronzebeauty]

Thank you Cheech.

[bronzebeauty]

Thank you score_building.

[y0rascal]

yea to only take a hard inq hit with them... sucks

[FretlessMayhem]

I've seen this payment option before when I've ordered things. I've always wondered what exactly it is.

I see that no TL is reported, but they pull your CR. Is Bill Me Later a revolving TL with a predetermined CL? Do they ever raise it based on new purchases? How is the interest rate? 

[score_building]

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@FretlessMayhem wrote:

I've seen this payment option before when I've ordered things. I've always wondered what exactly it is.

I see that no TL is reported, but they pull your CR. Is Bill Me Later a revolving TL with a predetermined CL? Do they ever raise it based on new purchases? How is the interest rate? 

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they pulled EQ for me.  it is revolving and in my experience offers attractive zero percent promos for up to six months depending on where you use it and the promos currently being offered.  the promos typically require a minimum purchase to be eligible.  it wouldn't be prudent to revolve otherwise since the min apr is currently 19.99 percent (slightly less than paypal paylater a newish rival). imo BML has an impressive and growing roster of affiliates, many more than say Revolution card offers for eg.

it appears BML has an internal spending limit which they don't as a rule share with the acct holder.  imho, they are extremely generous and convenient to use.  i am still not sure why many here seem to thumb their noses at BML but it doesn't appear to have much of a following at all around here.

my guess is they have been good to me because i have had another CIT acct for several years (Dell) that i also treat well but my limit has increased dramtically from what i can tell over time.  i have had BML purchases rejected a few times but as soon as i made a payment on the acct. that seemed to open up my internal limit higher than where it was.  each purchase is a mini credit decision and i actually kind of like that since you won't be trifled by CLD responses, they'll say yes or no and that's it.

[edit to fix typo:  pull >> pulled]

Message Edited by score_building on 04-14-2009 10:09 AM

[Anonymous]

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@FretlessMayhem wrote:

I've seen this payment option before when I've ordered things. I've always wondered what exactly it is.

I see that no TL is reported, but they pull your CR. Is Bill Me Later a revolving TL with a predetermined CL? Do they ever raise it based on new purchases? How is the interest rate? 

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There is no guarantee that BML pulls EQ. In my case, it was EX. They determine your initial CL and they reserve the right to do another inquiry (soft or hard) each time you make a purchase. This doesn't mean they WILL, but they do have the right to do so. When you make a purchase using BML, you will get a warning that they have the option to pull your credit.

The interest rate is 19.99%. This is prohibitive, of course. I only use my account to make purchases under their promo offers. The promo offers are usually (not always) 90 days to 180 days with no interest/no payments. As long as you pay it off in time, it's a great option.

Couple of things to know about BML:

1.  It will not appear as a TL on your credit report. (This can be good or bad, depending on your perspective. Personally, I like it.)

2.  BML is strictly an Internet purchasing option. You can't just walk into Target, for example, and try to use BML to pay at the register.  ;-)

3.  Any subsequent purchase you make using yoru BML account MAY create a new hard inquiry on your credit report. In my experience, I have never had a second hard inquiry from them. I've used the account about half a dozen times over the past 18 months or so, and I only ever had the first inquiry. HOWEVER, my first use of the account was the largest purchase I made.

4.  Not every online merchant accepts BML as a purchasing option and among those who do, the promotional offers can vary. Some even offer a one-time coupon/credit against the purchase price instead of financing promos.

5.  If you have multiple promo balances on your BML account, they will always (I verified this with a CR) apply your payments "in a manner to benefit you."  IOW, if you have a balance of $200 under a promo that will expire in 30 days, and a $100 balance under a promo that expires in 60 days, when you send in a payment, BML (unlike a credit card company) will apply the payment toward the promo that is expiring first. This, for me, is a very big plus.

If you're considering a BML account, I would visit their site, browse around and get an idea whether or not it will work for you. Personally, I love it, especially at Christmas.

[dizbuster]

Thanks Cheech for the information. I have always wondered about BML (how it works and such).
Do you know anything about their approval criteria? Maybe minimum score or anything?