PayPal Guide for Exploration Lite

PayPal Guide for Exploration Lite

PayPal Credit is a revolving line of credit that allows PayPal users to defer payment on purchases.

Learn how to apply for PayPal Credit, whether there are any costs, and how to get the most of it.

How Does PayPal Credit Work and What Is It?

PayPal Credit is a credit line that allows PayPal users to extend the time it takes to pay for specific transactions based on their creditworthiness. Synchrony Bank (formerly GE Capital) oversees the program, which is known for partnering with merchants to issue credit cards.

PayPal Credit requires a minimum credit line of $250.1.

You can use “PayPal Credit” as a payment option on websites that accept PayPal if your application for the program is approved.

What is PayPal Credit, and how does it work?

If the merchant accepts PayPal Credit, you’ll be given the opportunity to pay with it throughout the checkout process if you have a PayPal Credit account. As long as you have sufficient credit, your purchase should go through. PayPal may be able to finish the transaction if you don’t have enough credit by temporarily expanding your credit limit.

What Happens When You Make a Purchase?

You should be able to utilize PayPal Credit if you shop online at a store that accepts PayPal. You’ll get six months to pay off $99 or more purchases without incurring interest. You must pay the balance in full to prevent accruing interest on purchases of less than $99 in order to avoid incurring interest.

Like a credit card, you’ll have a minimum payment due each month, and you may set up automatic payments or pay manually through your PayPal account.

What Is the Process of Sending Money?

If you don’t have the cash on hand, you can utilize PayPal Credit to transfer money to someone you know. Go to “Pay or send money” in your account, enter the recipient’s information (email address or phone number), and then switch to PayPal Credit as your payment option. These deals do not qualify for promotional financing. As a result, you must pay the balance due by the due date to avoid interest costs.

When you use PayPal Credit to send money, you’ll be charged 2.9 percent plus 30 cents.

PayPal Credit Charges

PayPal Credit has a variable purchase APR of 23.99 percent, which is slightly more than the average credit card interest rate. There is no annual fee. You’ll be charged a $40 late payment fee if you haven’t missed a payment in the previous six billing cycles or $29 if you haven’t. A $29 fee is also applied to returned payments.

Promotional Offers

  • With PayPal Credit, you may choose from two types of promotional offers:
  • Get 0% APR for six months on purchases of $99 or more.
  • Certain transaction interest rates have been lowered.

Though these offers may appear to be a fantastic deal, keep in mind that if you owe even $1 the day after the promotional period ends, you will be charged delayed interest. In other words, you’ll be charged the same amount of interest as if you hadn’t taken advantage of the promotional rate.

What is the Process for Obtaining a PayPal Credit Card?

If you have a PayPal account, you can apply for PayPal Credit at any time, or you may be provided the option when checking out with conventional PayPal at an online store. The process is straightforward: Enter your birth date, annual income, and the last four digits of your Social Security number to agree to the terms and conditions. A hard inquiry is made when PayPal verifies your credit during the approval procedure. In a handful of seconds, you should be able to make a decision.

If approved, PayPal Credit will be available as a payment option for any future online checkouts that use PayPal.

The Benefits and Drawbacks of PayPal Credit


  • You can pay off large purchases without paying interest during promotional times.
  • Invest in insurance.
  • The application process is straightforward.


  • If you don’t pay off your thing on time, it can be pricey.
  • It is not valid at stores that are not online.
  • There are no prizes to be won.
  • It’s not the ideal way to send money to other people

Advantages Explained

  • You can pay off large purchases without incurring interest during promotional periods: If you pay off the balance before the promotional period ends, spreading payments out over time can save you a lot of money.
  • Purchase protection and free returns for purchases made using PayPal Credit are among the benefits offered by PayPal. This includes a full refund if a purchase does not meet your expectations, as well as free delivery on returned items (exclusions may apply).
  • The application procedure is simple: You’ll receive an answer in a matter of seconds. If you’ve been approved, you’ll be able to use PayPal Credit right away.

Cons Explained

  • It can be pricey if you don’t pay off your promotional buy right away: Deferred interest and PayPal Credit’s high standard APR can significantly raise transaction costs.
  • PayPal Credit is only applicable for online purchases and cannot be used in shops.
  • You won’t be able to earn rewards unless you use a rewards credit card like the PayPal CashBack Mastercard, which gives you cash back or points for your purchases.

It would be best if you used PayPal Credit sparingly since the variable cost of 2.9 percent and the fixed price of $0.30 are added to the amount you transfer to friends using PayPal Credit.

Who Is the Best PayPal Credit Candidate?

PayPal Credit is a terrific option for online shoppers who want to utilize PayPal but need a little extra time to pay for orders over $99. Because there are additional costs, it isn’t a great deal for minor transactions or sending money to others. If you only need a few months to pay for something, consider using PayPal Pay in 4, a no-interest buy-now-pay-later service.

For those with good to excellent credit, opening a credit card with a 0% APR for at least 12 months may be a better option. In addition to having a longer period to pay off a significant purchase, you’ll avoid delayed interest and perhaps gain points on your purchase.

If you use PayPal Credit too often, you could end up paying more in the long term if you’re charged APR fees, delayed interest, or fees for peer-to-peer payments.

Remember these key points:

  • PayPal Credit is a reloadable credit card that you can use over time to make online purchases.
  • PayPal Credit can also be used to send money to someone, although there is a fee.
  • If you don’t pay off your purchase before the promotional period ends, you’ll be charged interest from the day you made it.
  • PayPal Credit approval isn’t automatic; it’s based on your creditworthiness.

What is the credit score requirement for PayPal Credit?

PayPal does not specify a minimum credit score for PayPal Credit approval. Even those with poor credit may be considered.

Is There any Difference Between PayPal and PayPal Credit?

PayPal is a payment system that processes transactions using either your bank account or a credit card. You can also preserve a PayPal account balance and use it to make purchases. PayPal Credit is a revolving credit line that provides you more time to pay off purchases, but if you keep a balance on it, you’ll be charged an annual percentage rate (APR).

What is the PayPal Credit Requirement for a Minimum Purchase?

There is no minimum purchase amount specified in the PayPal Credit terms and conditions.

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