What is PayPal Credit and how does it work?

PayPal Credit is a digital, reclaimable accredit telephone line you can apply for wherever PayPal is accepted. If you ’ re making purchases of 99 dollars or more, you could get unblock credit for up to 6 months, giving you longer to cover the costs of your purchase. There ’ south no annual fee – but you ’ ll have to make certain your explanation is paid in broad within 6 months, or sake will be charged .
If having a physical card is authoritative, you might prefer a debit card option, which lets you cut the costs of shopping on-line with your favorite external retailers. Check out the Wise multi-currency account and tease to avoid alien transaction fees, save on international spending, and have more left for yourself in the end .
Get a complimentary Wise account

How does PayPal Credit work?

here ’ s how you can use PayPal Credit to either buy on-line or send a payment to person using your PayPal history.

Purchases with PayPal Credit

Apply for a PayPal Credit line of credit, and if you ’ ra approved, it ’ ll be mechanically added to your PayPal report. You can then shop on-line with your favorite stores and use the line of credit to pay for your purchases. Just select the PayPal Credit option when it comes to clock to pay¹ .

Sending money with PayPal Credit

To send money with PayPal Credit, simply log into your PayPal account, and when you ’ re setting up your payment, chatter on PayPal Credit as your favored way to pay. It ’ randomness that simple² .
If you ’ ra send in USD, you ’ ll be charged the lapp as you would be using a recognition or debit tease, although it ’ s effective to know that this is treated as a cash boost and incur interest from the distributor point of making the payment. besides, there are currency conversion costs if you ’ re sending money afield. We ’ ll touch on the entire fee structure a short late .
what is paypal credit

How to apply for PayPal Credit

You can apply to PayPal Credit on-line and get a decision in seconds .

  • Log into your PayPal account and click Apply for PayPal Credit
  • Enter your personal details including date of birth and SSN
  • Check and confirm everything is correct
  • Your account is verified instantly, and you’ll get a decision

If approved, you can start to shop with PayPal Credit immediately .

Where can I use PayPal Credit?

interested in accessing PayPal Credit ? here ’ second where you can use the service .

How to use PayPal Credit in store

PayPal is a colossus in on-line payments. unfortunately, though, PayPal is not generally accepted in brick and mortar stores. That means your PayPal Credit line can not be used in forcible stores – lone on-line ones .

How to use PayPal Credit online

so now you ’ re wondering how to use PayPal Credit on-line. The good news is that it ’ s easy. Use your PayPal Credit line in any ecommerce store that accepts PayPal. Just checkout using PayPal and select PayPal Credit as your prefer method acting of payment .
what is paypal credit

PayPal Credit fees

It ’ s crucial to know that PayPal Credit is not a dislodge service. Depending on how you use it, you may find that there are fees and interest to pay. here are some important points to note. Check out the wide terms and conditions online before you sign up .

When does interest start to accrue?

The first point to note is that when pastime starts to be charged can vary. The PayPal Credit headline is that you ’ ll not be charged concern on purchases of 99 USD or more for 6 months. however, there are charges in other cases :

  • Purchases of under 99 USD accrue interest from the date of purchase
  • Send money transactions accrue interest from the date of purchase
  • Interest will be added from the date of purchase if you spend 99 USD or more, but do not pay it off in full in 6 months

All that said, depending on how you manage your PayPal bills you may not end up needing to pay matter to on your PayPal Credit account. Make certain your credit line is paid off in full in every bill cycle to cut your costs overall .

PayPal Credit fees and interest

Cost type PayPal Credit fee³ ⁴
Interest (APR) 23.99%
Minimum interest charge 2 USD
Late payment fee Up to 40 USD
Returned payment fee Up to 29 USD
Sending payment domestically (PayPal fee) 2.9% + fixed fee
Sending payment internationally (PayPal fee) 4%

what is paypal credit

PayPal Credit pros & cons

Before you sign up to PayPal Credit, take some time to assess and weigh up the pros and cons. There could be costs to pay for the services on offer – and there are besides alternatives out there which may suit you better. More on that in a here and now. here are some PayPal pros and cons.


  • Quick credit decision
  • Extremely easy to use for online shopping
  • Use to send payments to friends and family (not suitable for sending to self)
  • Fee free for 6 months on purchases of 99 dollars or more


  • Can’t be used in stores, no physical card available
  • No interest free period on purchases under 99 USD or cash advances to friends and family
  • PayPal additional costs apply when sending to friends and family, including transfer fee and currency conversion costs

Who is PayPal Credit best for?

If you ’ re making purchases of 99 dollars or more and know you ’ ll be able to clear your bills in 6 months, PayPal Credit is a handy cock. It may besides be useful if you ’ ra certain you can pay off your bills every charge hertz, as this will cut the costs of interest. however, it is significant to note the electric potential fees with this serve – like any other line of recognition. Fall behind on your payments and the penalties and interest can accrue cursorily .
Sending payments to friends and kin using PayPal Credit besides involves supernumerary costs due to the transfer fees, and currency conversion charges if you ’ ra sending overseas. Check out the full scope of fees before you sign up .

Alternatives to PayPal Credit

If a buy immediately, yield late service is decidedly what you want, do check out the competitors to PayPal Credit to see if any may suit you better. big names to start with include Afterpay, Sezzle, Klarna and Quadpay .
alternatively, you can avoid the potential costs of using a tune of credit by sticking with a debit card. Using a specialist card – like the Wise multi-currency account and tease – can besides save you money versus using a even debit wag. Use your Wise account to hold and convert currencies using the mid-market exchange rate, and then spend online using your linked poster, with no foreign transaction fees .
You ’ ll besides find that sending payments to friends and family oversea with Wise is a convenient and abject cost alternate to using your PayPal Credit line .
Open a free Wise report today
what is paypal credit

Frequently asked questions

PayPal Credit has a handy FAQ section – and we ’ ve besides rounded up a couple of key questions here to start you off .

Is PayPal Credit good?

PayPal Credit is a handy cock if you want to shop on-line with PayPal. It ’ mho best for bigger purchases over 99 dollars, and if you repay your bills in full every cycle or within the promotional menstruation. otherwise, you ’ ll give matter to and could be topic to late penalties .

Does PayPal Credit affect credit score?

Whenever a intemperate credit check takes position, it is reported to credit chest of drawers, which can impact your credit seduce. PayPal Credit is offered through its banking partner, which does contribution your information with credit agency. That can mean that using PayPal Credit may affect your accredit history and score .
Depending on your personal preferences and needs, PayPal Credit might be a helpful way to spread the monetary value of boastful ticket items across 6 months. however, it ’ s not the only buy now, pay later serve out there, so it ’ second worth comparing a few if that ’ s what you ’ re looking for .
If you barely need a handy way to cut the costs when spending online – specially with international retailers – a debit tease may suit you better. Take a look at the Wise multi-currency account and card to learn more .
Learn more about wise
Sources :

1 ] PayPal Credit – Main Website
2 ] PayPal Credit – FAQ
3 ] PayPal Credit – Terms and Conditions
4 ] PayPal – Fees
All sources checked on 23 July 2021
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain master or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a alike consequence. We make no representations, warranties or guarantees, whether express or implied, that the contentedness in the publication is accurate, complete or up to date .

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