PayPal Credit gives PayPal users extra time to pay for purchases with a rotating credit line. Learn more about how PayPal Credit works, how to apply for a PayPal Credit, if any costs are involved, and how to make full use of the service.


What is PayPal Credit?

PayPal Credit provides PayPal users with an option to extend the payment period for a particular line of credit based on their credit eligibility. Synhrony Bank (formerly known as GE Capital), known for partnering with merchants to issue credit cards, is in charge of the system. If PayPal approves your application request, you may choose “PayPal Credit” as a payment method for websites that accept PayPal payments.

How PayPal Credit Works

If you already have a PayPal Credit account, you will be given the option to choose it as a payment method during the exit process if the merchant offers it to you. As long as you have enough credit available, your purchase should pass. If you do not have enough credit, PayPal may allow the employee to proceed by increasing your credit limit immediately.

How It Works In Shopping

If you shop at an online store that accepts PayPal, you should see PayPal Credit as an option. For a purchase of $ 99 or more, you will have six months to complete interest-free payments. For a purchase of less than $ 99, you will need to pay the balance in full to avoid paying interest. As a credit card, each month you will have a down payment, you can set up automatic payments or pay in person with your PayPal account.

How It Works By Sending Money

If you need to pay someone you know and have no money in hand, you can use PayPal Credit to send money. Select the “Pay or Send” option in your PayPal.com account and enter the recipient’s details (his or her email address or phone number), then change your payment method into PayPal Credit. There is no sponsorship for this purchase, so you will have to pay the full amount owed by the deadline, or you will earn interest.

PayPal Credit Costs And Fees

PayPal Credit has a flexible APR purchase of 23.99%, slightly higher than the credit card interest rate. No annual fee. If you miss a payment, you will pay up to $ 40 late payment if you have paid late in the last six payment cycles or $ 29 if you have not paid. There is also a $ 29 refundable payment.3

Advertising Offers

PayPal Credit has two types of promotional offers:

  • 0% APR for six months on purchases of $ 99 or more
  • Reduced interest rates for a particular purchase

Although these deals may seem like a lot of money, just remember that if you owe even $ 1 a day after the end of the promotional period, you will be paying back the interest. In other words, you will be charged all the interest you would have paid from the date of purchase if you had not received the promotion amount.

How to apply for a PayPal Credit application

If you have a PayPal account, you can log in and apply for a PayPal Credit at any time or you may be given the option to apply when making a regular PayPal purchase using an online merchant. The process is fast: Enter your date of birth, annual income, the last four digits of your Social Security number, and check the box to agree to the terms and conditions. PayPal will pose a difficult question when assessing your debt during the authorization process. In a few seconds, you should make your decision.

Explained Benefits

Promotional times give you extra time to pay for large-scale interest-free purchases: Distributing payments over time can be very helpful as long as you pay balance at the end of the promotional period.
Purchase protection and free refunds: PayPal Credit purchases enjoy PayPal benefits. This includes a full refund if the purchase does not meet your expectations and free shipping of items you submit (not included may work).
Simple application process: You will get a decision in just a few seconds. If approved, you can use PayPal Credit immediately.

Defined Evil

  • It is expensive if you do not pay your promotional purchases on time: Postponed interest and regular APR of a high PayPal Credit can significantly increase the cost of your purchase.
  • You can not use it in brick and mortar stores: PayPal credit is limited to online activities only.
  • There is no chance of winning prizes: If you use a prize credit card instead, like PayPal CashBack Mastercard, you can return cash or points for your purchase.
  • Not ready to send money to others: Due to the flexible 2.9% fee and a small $ 0.30 small increase in the amount you send to friends using PayPal Credit, you should use this option lightly.
  • Who Is the Best PayPal Debt?

PayPal Credit is best for online shoppers who enjoy using PayPal and, from time to time, can earn some extra time to pay for purchases of more than $ 99. Buying less or sending money to others, is not a good thing, as there are additional costs involved. If you only need a few months to pay for a purchase, consider using PayPal Pay for 4, a now-pay-later purchase service that does not charge interest.

Those with good credit can be better off by opening a credit card that offers 0% APR for at least 12 months. In addition to having a long time to pay for large purchases, you will avoid deferred interest and possibly win prizes for your purchase.

PayPal Credit may be a little worthwhile, but relying too much on it can be very expensive if you are hit by APR charges, deferred interest, or peer-to-peer payments.

What Debt Cost Is Required For PayPal Credit?

PayPal does not specify the credit terms required for approval of PayPal Credit. Even those with moderate credit rating may qualify.

What is the Difference between PayPal and PayPal Credit?

PayPal is a payment method that draws money from your bank account or credit card. You can also keep the balance in your PayPal account and use it for purchases. PayPal Credit is a revolving credit line that allows you to have more time to pay for purchases but to charge APR if you have a balance.

What Small Purchases Need To Use PayPal Credit?

There is no minimum purchase price listed for PayPal credit terms and conditions.

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