Paying Later Without a Credit Card

Have you purchased something on the internet recently and noticed an option to pay later? I've noticed it on Expedia when purchasing airline tickets. Pay later options are increasing in popularity across the internet as an alternative payment method. These are options that let you buy merchandise now and pay for it later, but without having to use a credit card. BillMeLater and PayPal Pay Later are two of the most popular pay later options.

SmartMoney.com covers a story on these pay later options and lists four reasons that you might rethink using these services.

1. Your credit score could be impacted
2. Interest rates are higher
3. You don't have a real credit limit
4. Fraud protection isn't as good as with a credit card

The full article from SmartMoney: Alternate-Payment Services Have Some Pitfalls

Whenever you use a credit-based service, credit cards or pay later options, the same spending rules of credit apply. Like, not using credit to buy things you can't afford.

More Reading:

• 5 Spending Habits That Lead to Debt
• Do's and Don'ts of Using Credit Cards
• 5 Ways to Build a Good Credit History