PayPal Credit, previously known as Bill Me Later, allows approved PayPal customers a line of credit through Comenity Capital Bank. This line of credit offers customers flexibility in purchasing goods through their accounts.
As with Bill Me Later, PayPal Credit permits customers to make as many as six monthly payments on purchases made through the credit line, which is linked directly to their PayPal accounts. Once linked, PayPal Credit is accepted anywhere PayPal is accepted. It often entitles customers to free shipping and various promotional offers in connection with their purchases.
The credit limit and annual percentage rate depend on an individual customer's credit rating. Monthly payment arrangements depend on the specific store from which goods are purchased. Customers are allowed to avoid interest charges by paying off their balances early. As with most credit lines, PayPal Credit charges fees for late payments. These fees vary depending on the outstanding balance.
Thousands of stores accept PayPal Credit, and online auction company eBay also accepts PayPal Credit at checkout. Purchases made with PayPal Credit show up on a customer's PayPal statement as credit transactions. PayPal customers may apply for a PayPal Credit account by logging into their regular accounts and filling out a short online form.