Shoppers get credit lines to buy holiday gifts

PayPal, an online payment service, plans to offer lines of credit to qualified shoppers who want to buy holiday gifts, according to a recent post on a Wall Street Journal blog. I'm not sure if this a good thing (helping people buy gifts for loved ones) or a bad thing (encouraging cash-strapped Americans go deeper into debt).

eBay, which owns PayPal, is trying to expand it's "online-payments business," the post says, which makes sense because eBay recently purchased Bill Me Later, Inc., which lets shoppers pay later for items they purchase now.

Thousands of active eBay members will get offers to use the online service starting today. "The credit can be used at online retailers such as Toys "R" Us Inc., Amazon.com Inc. and Apple Inc.'s Apple Store, which use Bill Me Later," the post says. "Shoppers won't get charged interest or have to make payments until April 1, 2009, after which they can opt to pay through a payment plan with interest."

I'd be curious as to what kind of interest rates are being offered. Single digit? Double digit? Nothing comes for free.