BillMeLater is a new service that does what its name says: you can buy something paying using BillMeLater, they’ll front the cash, and send you a bill later, but, FiLife reports that what the name doesn’t tell you is that using it could temporarily damage your credit score.
Essentially, BillMeLater is giving you credit, and just like a credit card, they have to do what’s called a “hard pull” on your credit report. Hard pulls will drop your credit score roughly five points for roughly up to six months afterwards. That information isn’t disclosed in their FAQ and could come as a surprise to consumers considering BillMeLater is competing in the same service market as Paypal and Google Checkout, where they want you to choose it as an alternative payment option at checkout, neither of which impact your credit report.
If that doesn’t bother you then you may interested to know that BillMeLater is offering free shipping and discounts for some of its affiliates, just like Paypal and Google Checkout did last year in an effort to build up a user base during the holiday season.