Financial ServicesCredit

PayPal Credit Review

, Editor | Updated October 30, 2018
My3cents Rating: 4.2/5.0

PayPal Credit is a digital, reusable credit line built right into your PayPal account which can be used to shop anywhere PayPal is accepted.

  • Buy now, pay over time with PayPal Credit.
  • Get a credit decision in seconds with a quick application.
  • No Interest if paid in full in 6 months on purchases of $99 or more. Interest will be charged to your account from the purchase date if the balance is not paid in full within 6 months. Minimum monthly payments required. See terms
  • Whether you’re buying the perfect gift or purchasing a new couch, you can get the flexibility to buy what you need when you need it.
  • Easy to apply, easy to use and there whenever you need it.
  • PayPal Credit is subject to credit approval and is offered by Synchrony Bank.

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The issuer of the PayPal Credit account, Synchrony Bank, does not have a financial relationship with and has not endorsed this content.

What is PayPal Credit?

PayPal Credit is a credit line that you can use to make purchases through PayPal. You can use PayPal to shop at a huge number of online stores, making PayPal Credit a great way to buy things from multiple stores without needing to sign up for credit cards or lines of credit from multiple stores.

What kind of credit is offered by PayPal Credit?

It’s important to know that PayPal Credit is not a credit card. It’s a credit line that can be used to shop through PayPal. This is an important distinction because you cannot use PayPal Credit to shop in stores physically, or at websites that don't accept PayPal. It can only be used online through PayPal.

How to use PayPal Credit? What purchases are eligible?

PayPal Credit is very easy to use. You’ll know almost right away if a purchase is eligible.

After you fill your cart you can go to the checkout page. If you see PayPal as a payment option, that’s good news. Log in to your PayPal account and you can see whether the pay with PayPal Credit option is offered.

You can use PayPal Credit at thousands of online stores and online marketplaces where PayPal is accepted.

PayPal Credit Features

PayPal Credit makes it very easy to apply for and use your credit line.

How do you apply for PayPal Credit and how long does it take for approval?

When you apply for PayPal Credit, you’ll be asked to provide your date of birth, your income after taxes and the last 4 digits of your Social Security number, and then to agree to the Terms and Conditions.

You’ll know within seconds if you are approved. And here’s the cool thing: your PayPal Credit account will be linked to your PayPal account and you’ll see it as a payment option every time you check out with PayPal.

How much line of credit is available on PayPal Credit?

Upon approval, your PayPal Credit account will be assigned a credit line of at least $250

What is the interest rate for PayPal Credit?

For New Accounts: Variable Purchase APR is 25.74%. The APR is accurate as of 9/1/2018 and will vary with the market based on the Prime Rate (as defined in your credit card agreement). Minimum interest charge is $2.00. Learn more about the interest rate.

Our Review: The Deep Dive

PayPal Credit is a digital credit line that you can use at stores that accept PayPal. Unlike a store card or line of credit, you’re not locked into shopping in just one place.


Shop anywhere PayPal is accepted using the same credit line.


High interest rate means you could pay a lot if you take a long time to pay the money back.

Bottom Line:

PayPal Credit's best feature is the 6 month special financing on purchases of $99 or more. See terms

PayPal Credit Pros & Cons
Pros Cons
Use one credit line at multiple stores Only usable online
Instant credit decision Only usable at websites that accept PayPal
Special financing High interest charges if the balance is not paid in full by the end of the promotional period
No annual fee. See the Terms and Conditions Won’t earn credit card rewards
Get all the benefits of PayPal when you shop with PayPal Credit


You have a few alternatives that you can consider when you're thinking about using PayPal Credit.

What are the alternatives to PayPal Credit?

One alternative to PayPal Credit is a credit card with a 0% introductory rate. If you want to take your time paying off your purchase, you can easily find a promotional period longer than the six months that PayPal Credit offers. You could also consider a low-interest personal loan. You’ll save a lot of money when compared to PayPal Credit’s high-interest rate.

What about the PayPal credit cards?

The PayPal credit cards are similar to PayPal Credit in that you can use it at thousands of stores online. You can also use it to make purchases at physical stores, giving it a leg up on PayPal Credit. The downside is that you do not get special financing option for large purchases.

Is a personal loan better than PayPal Credit?

A personal loan may be better than PayPal Credit if you expect to take longer than six months to pay off your purchase. If you can secure a loan with a lower rate than the rate that PayPal Credit will charge, you’ll pay less overall.

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