What is PayPal Credit? How it Works, Fees & Benefits

In the world of mobile based payment systems, PayPal stands out head and shoulder above the rest. Why? Because it is easy to use, set up and maintain. Needless to say that PayPal enables the users to send, receive, request and store money. The list of benefits & features is very long. But, that's not what we are going to discuss right here in this helping post. Our today's matter of discussion is PayPal Credit use, benefits, fees and how it works.

Maybe you have heard about it but you haven't had time to find an answer to a question like- What is PayPal credit? Who & how one can get PayPal credit? If you want to know whether it is useful or not for you, then you must read this helping post till the end.

I am going to answer all frequently asked questions about the credit line on PayPal and show you how this feature can help you to fund your needs. So, let's start with basics first:

What is PayPal Credit? What are the benefits of it?

Before I proceed & elaborate the topic, let me clear one thing! PayPal doesn't provide credit cards. There is a misconception among the people due to which many people think of PayPal credit as a card, but this is not the story. Find below more information.

Unlike the Visa, MasterCard and American Express credit card, be informed that PayPal credit isn't a physical card . I mean, it doesn't have shape, size and color. In other words, I can say it is not a product rather it is an online service. And this service is available only for all verified PayPal users. Have a quick look at the various benefits of credit on PayPal:

You can use PayPal credit to buy things where PayPal is acceptable.
The biggest benefit is that you make payment in all currencies (except GBP).
Also, the users can buy products in easy instalments ( this feature is available at selected merchants).
You will be glad to know that PayPal also provides protection for unauthorized credit charges.
One more benefit is that there is no annual fee for using PayPal credit as a payment method.

How to get PayPal Credit? Who qualifies for it?

Getting a PayPal credit limit is quite a simple piece of work. In just a few simple steps any PayPal verified user can apply for it. And expect early approval on the basis of good credit history. These are the steps to follow to apply for PayPal credit:

Go to the PayPal official site.
Take the cursor on the "Personal" tab.
Now from the drop down menu select "Pay with credit"
Here comes a login Window. Login to your account or create a brand new account.
Now check out your billing address and press the "Continue" button.
Enter your date of birth, phone number & SSN, if you have not updated so far.
Follow the simple step by step instructions & submit your request.
Once you get the approval, you will have a credit line tab on the right side of your home screen after login.

Does PayPal credit affect credit card score?

As PayPal does not share positive & negative reviews with the credit bureau, users' credit score does not get affected on the basis of how you maintain the credit limit on PayPal. But, remember that any delay in the payment of the pending amount, can invite a heavy penalty. And in the worst cases, your account could also be blocked.

What are the fees for credit limits on PayPal?

Applying for a credit limit is free and also there are no yearly charges. But, there are a few number of conditions which attract fixed charges. Find below the more information.

If you don't pay back the credit amount you borrowed to PayPal, a fee of $15 (approx) will be applicable. Also, the same fee is applicable for the return payment. In case if you request a statement in paper, then you may have to pay $6 dollar.

Bottom Line

So, we have discussed all about: What is PayPal Credit? How it Works, Fees & Benefits. All the given information in the above section is latest and up to date to the best of my knowledge. Also, remember that to use the credit limit on PayPal, it is important to have access to your account. Only then you can pay through PayPal’s credit line.