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$0
Annual fee
23.99%
Purchase APR (variable)
670
Recommended credit score
Review by
Kliment Dukovski is a credit cards writer. He's written over 600 articles to help readers find and compare the best credit cards. Kliment has also written on money transfers, home loans and more. Previously, he ghostwrote guides and articles on foreign exchange, stock market trading and cryptocurrencies.
This feature is actually a double-edged sword. Those who can pay off their purchase within six months may find this to be an incredibly useful perk. But oftentimes shoppers misjudge their ability to repay their loans on time. With the PayPal Credit, failing to pay off your balance on time means you’ll pay interest retroactively from the moment you made your purchase. This will make your purchase a way more expensive than it is.
You’ll see if you’re approved in minutes, and you can begin using your PayPal Credit right away.
Some schools and certification programs — such as home inspectors, makeup artists, flight attendants or bodyguards — accept PayPal payments. The six-month 0% special financing may be useful in this case.
However, don’t use this payment option if you can’t pay off your balance within six months or you’ll pay interest retroactively from the moment you made the purchase.
For example, a $5,000 payment with a 25% interest paid after the seventh month will cost you around $5,425 in total. That’s $425 more paid in interest in only seven months!
If your school or certification program accepts credit card payments, consider a credit card with a 0% intro APR period. These cards can have up to 20 months of interest-free period and if you fail to pay your balance by then, you will only accrue interest on any unpaid balance. But in some cases, there could be a 2% or 3% credit card processing fee. Make sure you ask your school before making the payment to avoid any surprises.
To apply for the PayPal Credit, log in to your PayPal account and:
You’re in a better position for PayPal Credit approval with a good to excellent credit score.
PayPal acquired the Bill Me Later service in 2008 and re-released it as PayPal Credit in 2014. Satisfied customers on Reddit and the Better Business Bureau (BBB) like the high credit line they received from the start or managed to get after using the service. Many also praised the six month no-interest promotion for purchases of $99 or more if paid in full within six months.
PayPal Credit is backed by As of October 2020, Synchrony Bank, which has been accredited by the Better Business Bureau since 2006, has earned an A+ based on the BBB’s internal criteria. Most complaints with the BBB relate to poor customer service from the bank in general and what customers believe were hidden fees.Unsatisfied customers of PayPal Credit also frequently complain on the BBB site and Reddit about declined payments. To avoid surprises, carefully read the terms of your service and try to pay your balance early, in case your payment is declined.
In August, 2020, the Student Borrower Protection Center — a nonprofit advocacy group — sent a letter to the consumer bureau and the federal Office of the Comptroller of the Currency, asking to investigate the PayPal Credit because it “can leave borrowers in significant financial distress with few protections.” This is mainly because of PayPal’s special financing option where the consumer pays interest from the day they made the purchase unless they pay off the balance within the promotional six months.
If you often buy items of $99 or more through PayPal, the no-interest promotional period of six months offered by PayPal Credit can save you money. Just make sure to pay off what you owe in that time, or you’ll pay interest on what you owe back to the moment of purchase.
If you prefer to earn rewards on your spending or want to build or rebuild your credit, compare other credit cards to find the best fit for your needs.