{"id":451022,"date":"2022-05-18T11:04:14","date_gmt":"2022-05-18T10:04:14","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=451022"},"modified":"2026-04-30T13:42:51","modified_gmt":"2026-04-30T12:42:51","slug":"paypal-credit-review","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/buy-now-pay-later\/paypal-credit-review","title":{"rendered":"What is PayPal Credit?"},"content":{"rendered":"

Is it a loan? Is it buy now pay later? PayPal Credit is neither \u2013 it\u2019s most similar to a credit card but with a catch. Here\u2019s what you need to know.<\/p>Representative example: When you spend \u00a31,200 at a purchase rate of 23.9% (variable) p.a., your representative rate is 23.9 % APR (variable).

What is PayPal Credit?<\/h3>

PayPal Credit is a credit limit that\u2019s attached to your usual PayPal account and allows you to spread the cost of your online spending in monthly instalments. It works in a similar way to a credit card but without the plastic. Instead, you simply make your purchase online and then choose PayPal Credit as your funding source at checkout. <\/p>

Like a credit card<\/a>, you\u2019ll receive a monthly statement, and you\u2019ll need to make a minimum repayment on your balance each month. Repayments can be made by monthly direct debit, directly from your PayPal account or by speaking to a customer agent.<\/p>

You can use PayPal Credit to make purchases at thousands of online stores, and you can manage your PayPal account on your desktop, tablet or mobile.<\/p>

Representative example: <\/p>

How does PayPal Credit work?<\/h3>

PayPal Credit works by letting you spread the cost of your spending over a number of months. You\u2019ll benefit from a 4-month interest-free period on each eligible purchase. This means that rather than being an introductory offer, you\u2019ll get the 0% for 4 months each time you make a purchase, as long as you have enough available credit limit. <\/p>

There\u2019s just one catch \u2013 to qualify for the 0% offer, you must spend \u00a399 or more, either in 1 transaction or on your checkout basket total.<\/p>

Any purchase costing less than \u00a399 won\u2019t be eligible for the 0% deal, and you\u2019ll be charged interest at a rate of 23.9% p.a. (variable) if you don\u2019t pay for it by your statement deadline. This rate will also apply to any remaining balance after the 4-month 0% deal ends. <\/p>

In some cases, you can choose to spread the cost for longer using instalment offers. These are available at selected online retailers and let you spread the cost over 6 to 48 months at promotional interest rates lower than the standard rate of interest. Your offer will vary depending on the merchant, and some will be interest-free. However, you must make the agreed repayment amount each month until you\u2019ve repaid the balance. <\/p>

Note that PayPal Credit is not the same as PayPal Pay in 3. Pay in 3, as the name suggests, allows you to split your purchase into 3 interest-free payments and works in a similar way to many buy now pay later (BNPL) schemes. You make the first payment at the checkout, and the rest in 2 payments every month on the same date. Purchases must be at least \u00a330 and no more than \u00a32,000, and it is only available for certain merchants and goods.<\/p>

How are the minimum repayments calculated?<\/h3>

Your minimum repayments for PayPal Credit are calculated based on your purchases and will include the following:<\/p>