PayPal Credit: Short-Term Financing, But Nothing More

PayPal is a popular payments system that makes online payment and money transfer much faster and more convenient. Now, the company offers PayPal Credit, which adds to the services it is currently offering.

The PayPal Credit

The PayPal Credit

Intro Bonus: None

Regular APR: 23.99%

Credit Score: Good to Excellent 

Annual Fee: $0


  • There is no welcome bonus and rewards program, but you can use PayPal Credit’s deferred financing anytime. 
  • There is a minimum purchase amount of $99 for the financing option to be approved.
  • Email reminders will be sent to you when your payments are due.
  • Users can keep track of their accounts and view their statements online at any time.
  • The reusable credit line provided can be used on purchases at different online stores accepting PayPal.
  • The APR for cash advances is 23.99%.
  • PayPal Credit offers other helpful features that could benefit and secure you in using the card for purchases, such as the Purchase Protection and Fraid Protection features. 

PayPal Credit Review:

PayPal Credit is generally is an open-end (revolving) credit card account, providing users a digital, reusable credit line. This means you don’t have to carry the card or deal with credit card numbers when using your credit. All you need to do is use it for stores accepting PayPal, such as JCPenney, Best Buy, Target, Wayfair, Ulta, Carter’s, The Children’s Place, and more. 

This electronic credit card account application requires a PayPal account, so you need to sign up for one first. The application is fast, and you can get results within seconds. However, do mind that you need at least a good to excellent credit score to qualify for the application. Once you are approved, PayPal Credit will automatically be linked to your PayPal account. Then, the credit line will be included as an additional payment option every time you check out with PayPal. The credit limit that will be assigned to you comes with a total of $250. The amount can be minimal, but the request for approval of a transaction that makes you go over your credit limit is possible. However, this is not treated as an increase in your credit limit.

Meanwhile, unlike conventional credit card accounts, PayPal Credit comes with very limited features. There is no annual fee, but it doesn’t come with any introduction bonus or even a rewards program. There is also no introduction offer, but it features a special financing offer handy for specific times.

PayPal Credit's Special Financing Offer

PayPal Credit’s Special Financing Offer

With PayPal Credit, you can choose to pay for purchase right away or over time. But to qualify for it, you need to reach the minimum purchase amount required, which is $99. After this, no interest will be charged on the purchase if you pay it off in full within 6 months. If not, interest will be charged to your account from the purchase date.

You will be required a minimum monthly payment to pay for your balance, but just paying for the minimum may not pay off the entire promotional purchase before the promotional period ends. This can be risky if you are not that skillful in managing your finances and financial responsibilities, as PayPal Credit has an APR of 23.99% and a late payment fee of up to $40. With this, it is suggested to go beyond your minimum to assure that you can pay off everything on time. And to aid you, PayPal allows you to conveniently make or schedule payments from your account with PayPal.

On the other hand, if you are not comfortable with the said risky payment arrangement above, PayPal Credit offers Easy Payments promotional financing. In this option, users can pay for their PayPal Credit purchases in substantially equal monthly payments. Note, however, that the number of merchants that may be subject to special, promotional repayment terms and/or APRs of this promotional financing option is a bit limited.

Final Thoughts:

PayPal Credit is a good backup option if you are a consistent PayPal user and need some credit to fund a purchase. The special financing option can also be handy in specific situations, but one should be careful in its use. This deferred financing differs from the 0% intro APR of other credit cards. One wrong move and failure to pay off the promotional purchase by the end of the 6-month period can result in high-interest charges.

If you need better alternatives, the general rewards credit card from Wells Fargo, Citi, Capital One, Bank of America, Discover, Amex, and Chase might be more beneficial. They offer a wide range of credit cards with incredible features, including intro APRs on purchases and balance transfers. They are also versatile, allowing you to use them everywhere and earn cashback or points that you can redeem for valuable rewards.