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PayPal Credit review
No interest on purchases of $99 or more if you pay them off within six months.
- Get this credit option to pay for your PayPal purchases.
- Pick something else if you you want a true 0% intro APR option.
- Apply with a good credit score of 670 or higher.
N/A
Rewards
$0
Annual fee
23.99% variable
Purchase APR
670
Minimum Credit Score
Review by
Kliment Dukovski
kliment.dukovski@findercrew.comKliment Dukovski is an investments writer who has written over 600 articles to help readers find and compare the best financial options. 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.
Expert review
PayPal Credit is a reusable credit line built into your PayPal account. This gives you the flexibility to pay your purchases over time. For purchases over $99, you can get a promotion of six months to pay off your balance with no interest but you have to pay it in full within six months.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.
How to apply for PayPal Credit
- Log in to your PayPal account and look for the PayPal Credit. Choose Apply now.
- Fill out the required information, including your date of birth and last four digits of your Social Security number.
- Review and submit your application.
How long will it take to get my PayPal Credit?
You’ll see if you’re approved in minutes, and you can begin using your PayPal Credit right away.
The perks
- Six month no-interest promo period. Spend more than $99 on your PayPal purchase for access to a promotional no-interest credit line that gives you up to six months to fully pay off what you’ve borrowed. If you fail to pay off your balance within the six months, you’ll pay the standard APR that applies to your account starting from the moment you made your purchase. The promotional financing option doesn’t apply to sending payments.
- No annual fee. You won’t pay a fee each year for access to this credit line.
You’ll also like …
- Purchase protection. If you don’t receive your order or items as expected — for instance, you receive a “new” item that’s clearly used — PayPal reimburses the full price you paid plus original shipping costs.
- Return shipping. If you want to return your order, PayPal refunds the cost of sending it back — up to $30 on each claim for 12 eligible purchases a year.
- One Touch. Connect PayPal Credit to simplify your checkout across multiple sites without logging in or repeatedly submitting your billing info.
What to watch out for
- High APR. If you don’t pay your balance on time for purchases of $98.99 or less, you’ll incur a 23.99% variable APR on your purchases. The same APR applies for the promo no-interest period on purchases of $99 or more if you fail to pay your balance in full within six months.
- Minimum credit line. Your credit line depends on your overall creditworthiness. Despite that, PayPal won’t extend a credit line of less than $250.
Paying tuition with the PayPal Credit
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!
Are there alternatives?
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.
Compare credit cards with no annual fee
What should I know before I apply?
To apply for the PayPal Credit, log in to your PayPal account and:
- Confirm or update your billing address and phone number.
- Add the last four digits of your Social Security number and date of birth.
- Provide your annual income after taxes.
What credit score do I need?
You’re in a better position for PayPal Credit approval with a good to excellent credit score.
PayPal Credit reviews and complaints
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 August 2021, 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.
I got the credit. Now what?
- Download the app. Manage your credit and make payments through the PayPal mobile app. Or, make purchases or send money to friends and family without fees.
- Avoid interest. Always pay your balance in full to avoid paying interest on your purchases. For the no-interest promotional period of six months for purchases of $99 or more, pay your balance within six months. Otherwise, you’ll incur retroactive interest on your full balance from your date of purchase.
- Get help. Call PayPal support at 866-528-3733 weekdays from 8 a.m. to 11 p.m. ET and weekends from 9 a.m. to 9 p.m. ET.
Bottom line
If you often buy items of $99 or more through PayPal, the no-interest promotional period of six months PayPal Credit offers can save you money. But 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.
Frequently asked questions
What if I don’t pay off my balance in six months?
On all of your purchases, you have to pay your balance on time to avoid paying interest. On purchases of $99 or more, the promotional period of six months lets you pay your balance interest free. But if you fail to pay your full balance within six months, you’ll pay retroactive interest on your full purchase balance back to the date you bought it.