PayPal Credit Review: Pricing, Features, Legit or Scam

Scammers will always use your credit card to steal from you because it gives them access to your financial information. But with PayPal Credit, the case is different. Find out if it’s worth going for.

PayPal Credit is a line of credit linked to your existing PayPal account that allows you to purchase online at your own pace. Although you can also use your bank account, debit card, or credit card to make transactions, PayPal credit is simpler, faster, and safer.

Even with all the mouth-watering features, most people still doubt it’s real. So to help clear the doubt, we’ve done a review on PayPal Credit and what it entails.

Here, you’ll learn more about PayPal Credit, how it works, its pros and cons, requirements, and lots more.

What is PayPal?

PayPal is a worldwide online payment system operating from America. Currently, the company assets are worth over $46 billion and have 277 million users.

This online payment system allows the transfers of online funds and also serves as an electronic alternative to traditional paper methods.

With its easy and secure system, you can make transactions easily without having to put all your personal information. This prevents you from being scammed.

Also, its multiple payment options offer you and other customers varieties of payment methods such as debit cards, prepaid cards, and credit cards.

Now let’s talk about the credit in detail.

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What then is PayPal Credit?

PayPal Credit is a credit card account that offers a reusable credit line. With this, you can pay for your purchases right away or pay over time.

In other words, it is a payment option any user can have access to through his/her PayPal account. This means the credit line is built into PayPal accounts.

The credit card is one of the best because of its’s unique and advantageous features. Unlike other payment methods, its users are granted special financing for purchases of $99 or more.

The downside is that you can only use it in a country where PayPal is accepted.

Features of PayPal Credit

PayPal Credit has unique features that distinguish it from other credit cards. Some of them include:

  1. The credit card is 100% secured
  2. PayPal Purchase Protection covers all your eligible transactions. This means you get refunded if your order doesn’t match the description.
  3. Offers varieties of Opportunities.
  4. Another feature that makes it more interesting is that you can make purchases and pay via transfer without inputting your account details.
  5. With PayPal Credit account to shop anywhere around the world once the country accepts it.
  6. Get No Interest if paid in full in 6 months on every purchase of $99 or more.

How Does it Work?

PayPal Credit offer some special payment deals, like longer interest-free terms. Like I mentioned earlier, users get up to 6 months to pay off the balance interest-free when they make purchases of more than $99.

And if they don’t pay up by them, they’ll now have to pay interest for the remaining periods. Now, for more than $30 purchases, you can be permitted to pay in 3 months instalments with no interest charges.

Furthermore, you can send money to loved ones using PayPal Credit. the only challenge here is that it’s a bit expensive.

Pros and Cons of PayPal Credit

Before you decide to go with PayPal as your credit card processor, below are some of the good and bad points to consider.


You are fully aware that PayPal is one of the fastest and more secure platforms to make online payments. That aside, there are lots of benefits its features provide.

Your Account is Protected

Purchasing with a PayPal credit Card protects your account because you don’t need to share your financial information. The platform uses sophisticated encryption to process every transaction.

Offers Varieties

With PayPal Credit, you can pay for different things at millions of online shops across 203 Global Markets. In addition to one-time purchases, PayPal is also the faster, simpler way to make recurring payments to all your monthly bills and subscriptions.

Allows you to make Payment with your Password

You can make transactions without typing in your account numbers every single time.

It’s Flexible

You can make transactions right from your linked credit, debit, or other payment accounts. Just choose the payment method you want to use when you check out.


Here are some of the bad points to consider.

  • Creates a hard inquiry on your credit report, which may lower your credit score.
  • Late payment fees if you miss payments.
  • High APR, similar to any other credit card.
  • No rewards or points to earn on purchases.
  • Exclusive to online purchases where PayPal is accepted.
  • Can entice you to spend more than you should.

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What’s the PayPal Interest Rate?

The minimum interest charge is $2. As of March 2020, the Variable Purchase APR is 25.49%. Note, the value fluctuates with the market based on the prime rate.

If you’re in the habit of paying by credit card, PayPal Credit might make sense.

How Do I Get a Credit Line?

You get a credit line once you open a PayPal Credit account. Opening a PayPal credit account is free and simple. Click on the button to sign up.

Once you are done a credit line of at least $250 will be assigned to you. This will be based on your creditworthiness. This means how worthy you are to receive new credit which is what most lenders consider.

Interestingly, you can increase your credit line if you so pleases. You can request a credit line increase by phone by calling the customer service number on your monthly statement.

On the other hand, you can also choose to buy something that goes over your credit limit. And if it’s been approved, your credit line will be that price.

For example, you have a credit line of $300, you have a balance of $100, and you want to make a purchase worth $400, if PayPal approves it, then $500 will be your new credit line.

What are the Requirements?

To get a PayPal Credit card you have to apply online. But to be eligible, you must be above 18 years and have good credit quality.

To have a good credit quality means you must’ve at least 700 PayPal credits in your account.

Currently, two PayPal credit cards are available. Points PayPal credit card
Cashback PayPal Credit Card.

The first rewards in points- 3 points per $1 spent on gas and restaurant purchases, 2 points per $1 on PayPal and eBay purchases, and 1 point per $1 on everything else while the latter that rewards in cash give you 2% cashback on all purchases.

Aside from the good credit points, here are some things you need:

  • Date of birth
  • After-tax income
  • Last 4 digits of your Social Security number (SSN)
  • Agree to the terms and conditions

Once you submit the information above and get approved for a PayPal Credit account, it will be linked to your existing PayPal account.

In summary, the following steps below will help you get an active PayPal Credit Card:

  1. Compare the PayPal Extras Mastercard and the PayPal Cashback Mastercard to determine which is better for you.
  2. Check your latest credit score. Remember, you’ll need at least good credit (700+) and a steady income to be approved for either PayPal-branded credit card.
  3. Consider whether another type of credit card would save you more money than your favorite PayPal credit card.
  4. Click “Apply Now” once you choose a card. You can do so from a credit card comparison website or PayPal’s credit card page.
  5. If you’re applying for a PayPal card, log into your PayPal account to access the application.
  6. Fill out and submit the application, making sure all your personal information is correct.
  7. Wait for a decision. You could be approved instantly, or it might take another 1-2 weeks.

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Frequently Asked Questions

If you wish to shop online using PayPal, PayPal Credit is a valuable tool. It’s excellent for purchases over $99 and if you pay off your bills in full each cycle or during the promotional period. Otherwise, you’ll have to pay interest and even be penalized for being late. 

A hard credit check is reported to the bureaus every time one is performed, which might impact your credit score. PayPal Credit is provided by PayPal’s banking partner, which does share your data with credit bureaus. As a result, using PayPal Credit may have an impact on your credit history and score. 

PayPal Credit may be a valuable option to stretch the expense of large-priced products across six months, depending on your unique tastes and needs.

However, it’s not the only purchase now. Pay later service is available, so if that’s what you’re looking for, it’s worth comparing a few. A debit card may be a better option if you need a convenient way to save money when shopping online, especially with overseas companies. To understand more, have a look at the Wise multi-currency account and card. 

To use PayPal, you don’t need to have any money in your account. When making a transaction, you have the option of paying with any of the credit cards linked to your account, just as in a physical wallet. There is no need to fund your budget ahead of time.

Unfortunately, PayPal is still a target for fraud and illicit activities. Every day, they, like any other payment processor, are bombarded with scams, hacks, and fraud attempts aimed at stealing money and resources from merchants and cardholders. 

Linking a bank account to PayPal, on the other hand, is safe as long as users maintain plenty of checks and balances. PayPal offers the same level of fraud protection as a credit card, and the website strives to make online payments safe. 

A credit card is nothing more than a plastic card that can be used in place of real money. You may shop and receive payments with credit cards, just like you can with PayPal. There is no borrowing with PayPal because you can only make transactions if you have money in your account. 


PayPal Credit is one the great way to finance purchases without the hassle of added fees and interest. As long as you can pay the full balance of your purchase within the 6-month grace period, it can be a great opportunity.


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