What Is PayPal Credit?

PayPal Credit gives PayPal users supernumerary fourth dimension to pay off a purchase through a orb line of credit .

Learn more about how PayPal Credit works, how to apply for PayPal Credit, if there are costs involved, and how to make the most of the serve .

What Is PayPal Credit ?

PayPal Credit gives PayPal users a way to extend the payment period for certain purchases through a tune of credit based on their creditworthiness. Synchrony Bank ( once GE Capital ), known for partnering with retailers to offer credit cards, manages the program .

The minimum PayPal Credit credit wrinkle is $ 250. If PayPal approves your application for the broadcast, you can choose “ PayPal Credit ” as a payment choice for websites that allow PayPal payments .

How PayPal Credit Works

once you have a PayPal Credit report, you will be given the option to choose it as a payment method acting during the checkout march if the merchant offers it. angstrom long as you have enough credit available, your purchase should go through. If you don ’ t have enough citation, PayPal may allow the transaction to go through by instantaneously increasing your credit limit .

How It Works for Purchases

If you shop at an on-line retailer that accepts PayPal, you should see PayPal Credit as an choice. On purchases of $ 99 or more, you ’ ll have six months to complete the payments without matter to. For purchases that are less than $ 99, you ’ ll have to pay the proportion in wax to avoid paying matter to .

As with a credit circuit board, each month you ’ ll have a minimal payment due, you can set up automatic payments or pay manually through your PayPal history .

How It Works for Sending Money

If you need to pay person you know and don ’ t have the cash on hand, you can use PayPal Credit to send money. Choose the “ Pay or send money ” option in your PayPal.com account and enter the recipient role ’ mho information ( their electronic mail address or earphone numeral ), then change your payment method to PayPal Credit. There is no promotional financing for these transactions, so you ’ ll have to pay the sum owed in wax by the ascribable date, or you ’ ll be hit with concern .

When you use PayPal Credit to send money, PayPal will tack on a fee of 2.9 % plus 30 cents .

PayPal Credit Costs and Fees

PayPal Credit has a variable star purchase APR of 23.99 %, which is slenderly higher than the average credit card interest rate. There is no annual fee. If you miss a requital, you will pay up to a $ 40 former payment tip if you ’ ve had a deep requital in the past six charge cycles or $ 29 if you haven ’ metric ton. There ’ south besides a $ 29 fee for revert payments .

promotional Offers

PayPal Credit has two types of promotional offers :

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

Though these offers can seem like a great distribute, just be mindful that if you owe even $ 1 the day after the promotional time period expires, you ’ ll wage deferred interest. In other words, you ’ ll be charged all of the sake you would ’ ve paid from the date of the purchase if you hadn ’ thymine got the promo rate .

How to Apply for PayPal Credit

If you have a PayPal bill, you can log in and apply for PayPal Credit at any clock or you may be offered the option to apply when checking out with regular PayPal via an on-line retailer. The summons is agile : Enter your birth date, annual income, the death four digits of your Social Security number, and check the box to agree to the terms and conditions. PayPal will perform a difficult question when it checks your citation during the blessing serve. In a few seconds, you should have your decisiveness .

If approved, PayPal Credit will be a payment option for all future on-line checkouts where PayPal is accepted .

Pros and Cons of PayPal Credit


  • promotional periods give you excess time to pay off big purchases with no matter to .
  • purchase protective covering
  • slowly application process


  • costly if you don ’ thymine pay off your purchase in time
  • You can ’ t manipulation it in brick-and-mortar stores .
  • No opportunity to earn rewards
  • not ideal for sending money to others

Pros Explained

  • Promotional periods give you extra time to pay off large purchases without interest: Spreading out payments over time can be a huge help as long as you pay off the balance by the end of the promotional period.
  • Purchase protection and free returns: Purchases made with PayPal Credit enjoy PayPal benefits. This includes a full refund if a purchase doesn’t meet your expectations and free shipping for items you send back (exclusions may apply).
  • Easy application process: You’ll get a decision in just a few seconds. If approved, you can use PayPal Credit immediately.

Cons Explained

  • Costly if you don’t pay off your promotional purchase in time: Deferred interest and PayPal Credit’s high standard APR can significantly increase the cost of your purchase.
  • You can’t use it in brick-and-mortar stores: PayPal Credit is limited to online transactions only. 
  • No opportunity to earn rewards: If you use a rewards credit card instead, like the PayPal CashBack Mastercard, you can earn cash back or points on your purchases.
  • Not ideal for sending money to others: Because of the variable fee of 2.9% and the flat fee of $0.30 that’s added to the amount you send to friends using PayPal Credit, you should use this option sparingly. 

Who Is PayPal Credit Best For ?

PayPal Credit is best for on-line shoppers who enjoy using PayPal and who, on affair, would benefit from some extra clock time to pay off purchases above $ 99. For smaller purchases or to send money to others, it ’ s not a great bargain, since there are add costs involved. If you only need a couple of months to pay for a purchase, consider using PayPal Pay in 4, a buy-now-pay-later servicing that does n’t charge interest .

Those with good-to-excellent credit may be better served by opening a credit wag that offers 0 % APR for at least 12 months. In addition to having a longer menstruation to pay off a big leverage, you ’ ll avoid deferred interest and possibly earn rewards on your buy .

PayPal Credit could be good to have in a pilfer, but relying on it excessively much could cost you more if you get hit with APR charges, deferred interest, or fees for peer-to-peer payments .

Key Takeaways

  • PayPal Credit is a reusable line of credit that lets you pay for online purchases over time.
  • You can also use PayPal Credit to send people money, but it comes with a fee.
  • If you don’t finish paying off your purchase before the promotional period ends, you will be charged interest from the purchase date.
  • PayPal Credit is not automatic—your approval is based on your creditworthiness.

What Credit Score Is Needed for PayPal Credit?

PayPal doesn ’ metric ton specify the credit score that is needed to be approved for PayPal Credit. even those with average credit scores may qualify .

What’s the Difference Between PayPal and PayPal Credit?

PayPal is a requital choice that draws funds from either your savings bank account or a credit rating batting order. You can besides keep a proportion in your PayPal history and use it for purchases. PayPal Credit is a revolving credit line that allows you more clock time to pay off purchases but charges an APR if you carry a balance.

What’s the Minimum Purchase Required to Use PayPal Credit?

There is no minimal purchase sum listed in the PayPal Credit terms and conditions .

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