Financial ServicesCredit

PayPal Credit Review

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

PayPal is a popular online payment company that makes it easy to check out at your favorite online stores or to send money to your friends. Formerly called PayPal Bill Me Later, PayPal Credit lets you buy things now and pay for them later.

  • Buy now, pay over time with PayPal Credit. Use PayPal Credit’s digital, reusable credit line to shop online anywhere PayPal is accepted, and get 6 months special financing on purchases of $99+ every time you shop. Get a credit decision in seconds with a quick application.
  • No interest if paid in full in 6 months on purchases of $99+. 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.
  • 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. Subject to credit approval. See terms.
  • PayPal Credit is a reusable credit line built into your PayPal account giving you the flexibility to pay for your purchases right away or pay over time. It’s 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.
  • PayPal Credit - Digital Credit Line
  • Get 6 months promotional financing on purchases of $99+ everywhere PayPal is accepted.
  • Get No Interest if paid in full in 6 months on every purchase 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.
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What is PayPal Credit?

PayPal Credit is a line of credit 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 line of credit 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 any website of your choice. 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. You can also use it at marketplaces like eBay.

PayPal Credit Features

PayPal Credit aims to make it very easy to apply and use your line of credit.

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

Anytime you check out a purchase and select PayPal as your payment option, you may see the option to pay with PayPal credit. Select that option and you’ll start the application process right then and there. All you have to do is enter your Social Security number and birthday, then agree to the terms.

Your application will be considered, and you’ll have an approval decision within seconds.

How much line of credit is available on PayPal Credit?

PayPal does not offer explicit information on the amount of credit that it is willing to extend to buyers. Of course, the better your credit score is, the higher your credit limit will be.

Customers have reported credit limits as low as $250 and as high as $9,000.

What is the interest rate for PayPal Credit? Is there a promotional offer?

The current interest rate for purchases made using PayPal Credit is 25.74% APR. This rate will change based on market rates and the minimum monthly interest charge is $2.

There are promotional offers available. For example, purchases of $99 or more qualify for a six-month deferred interest period. If you pay the balance in full within six months, you’ll pay no interest.

Our Review: The Deep Dive

PayPal Credit is a flexible credit line that you can use at almost any store on the internet. Unlike a store card or line of credit, you’re not locked into shopping in just one place.


Shop nearly anywhere online using the same line of credit.


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

Bottom Line:

PayPal Credit isn’t much better than a credit card when it comes to interest rates. Its best feature is the automatic six-month deferred interest period on purchases of $99 or more.

PayPal Credit Pros & Cons
The Good The Bad
Use one line of credit at multiple stores Only usable online
Instant approval decision Only usable at websites that accept PayPal
Deferred interest promotions Surprise interest charges if the balance is not paid in full during the promotional period
No annual fees Hefty interest rate
Safer than paying with a credit card Won’t earn credit card rewards


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 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 Card?

The PayPal Credit Card is 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 deferred interest offers 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.

If you’re going to pay for your purchase during the six-month deferred interest period, PayPal Credit will save you money.

Consumer Reviews

MORENO VALLEY, CALIFORNIA -- Very inconvenient to change names and have customers get stuck with all the hassle of opening and creating new accounts through PayPal credit. So many technical problems when switching to PayPal credit. This company is really wrongly managed and does not think about customers first.

I have had satisfactory use of Bill Me Later in past. My balance was paid in full. Attempted to use at Christmas and payment was run through my bank account instead. Attempted again and once again ran straight through my account. I called customer help and my only advice was to send package back and attempt to again use Bill Me Later. I don't think so. If I wanted to run the payment through my account I would have done so and not chose the Bill Me Later tab. Closing my account with Bill Me Later because it's just not worth the mix up.

CALIFORNIA -- I complained to Bill Me Later (r) that I always pay my bills on time, and that I didn't know how my payment on PayPal got routed in this direction. To my knowledge, I never gave my permission and never received a statement. When asked about what my balance and specific charges were, Josh couldn't give me the source of two of the charges. He said they were 6 months before I found out they had occurred; instead I also owed on something I paid by a previous credit card.

When asked why I wasn't charged interest, he said it must be because of a promotion and that I had until April 2014 before my charges would occur. All this information was wrong; I canceled my Bill Me Later, which had to be done on the phone. I think this company for should be investigated for misleading the public.

ATLANTA, MAINE -- I have used PayPal for years. It was a good and fast way to pay for products in a safe manner. But PayPal began their Bill Me Later program and, at first, it appeared to have some usefulness. As time went on, they began to change their entry choice field to make Bill Me Later to be the default circle choice and by doing so get the consumer get in debt when the consumer's intent was to pay directly through the credit card. Once you inadvertently don't change the default, you end up in their quagmire of weird payment times, amounts, and you have to call to get it corrected... if you can.

The default change I believe is a subtle variation on the "bait and switch" and may be illegal... but this company probably has very good lawyers to just get by the intent of fair practice. If they are honest, they should clearly make the default PayPal and the other choice, Bill Me Later, as a condition to be chosen specifically by the user.

ATLANTA, GEORGIA -- Bought an $18 product and attempted to pay for it with PayPal. Instead a pop-up for Bill Me Later popped up and the only way I could pay for the item was with Bill Me Later. I thought that's OK, they'll take it out of my PayPal account at the end of the month. Thinking it would be paid automatically, I ignored the mail notices (bad idea). Now after two months of late fees ($35 + $35), I owe $90 for an $18 item. Don't get caught using Bill Me Later.

ATLANTA, GEORGIA -- I wanted to pay this account off in full. I called Bill Me Later to verify that my online statement balance was the correct balance on my account so that I could pay it in full. The assistant assured me that was my correct payoff. The assistant then took my payoff. The next day that payment cleared my bank. I go look at the statement to be sure it was at a 0 balance and it was. Days later I received a new statement stating I owe them another $100.00. Really?! Bill Me Later!! Never again! I do not recommend them to anyone. Please take this advice.

I am an honest person and believe in doing the right thing. At the payoff time I would have paid that balance if I owed it. I do not feel I owe them any more money. I also contacted the merchant and the merchant also assured me I did not owe them any more money. They have not heard the last from me.

TIMONIUM, MARYLAND -- How stupid is this? A rejection from Bill Me Later, via letter, to the address used to try to sign up, saying the address was invalid. Is there anyone alive there? Or are zombies sending out the letters. Really, this is the stupidest rejection letter ever.

TIMONIUM, MARYLAND -- I regret applying and getting approved for a Bill Me Later account. I have been using PayPal for years; transferring, paying and receiving money, and making purchases every month with no problem at all. My transactions were detailed and in plain sight, easy to read, etc. PayPal kept showing this advertisement asking me to apply for Bill Me Later. I finally did. It has been a nightmare since then. The moment I choose to use Bill Me Later, the money comes out of my PayPal account and my Bill Me Later account...both, then credited back to my PayPal account later, on the same transaction. It is too crooked, too misleading and completely unnecessary.

When dealing with the service on the phone, they have been nothing but total idiots; obviously with no skills at all. They need to be shut down. Their business is crooked to say the least. I was given a measly $1250 limit when opening the account last month. I used nearly $1100 and paid it off right away. The spending/usage experience with extremely unpleasant from the beginning. This company is a SCAM!

TIMONIUM, MARYLAND -- I made a deferred purchase in May 2013 and then made various charges each month. For several months, all was fine. I paid off all the new purchases and a little towards the deferred purchases. Then suddenly months before the deferred purchase promo ended I am being charged interest and the separate promo value seems to have disappeared. I called once and got the interest charges removed. They had mistakenly used my last payment towards my deferred purchase first rather than my new charges (despite doing fine for several months).

The customer service was frustrating, the lady went on and on before she understood the problem. But even though the interest was removed, the website still had my promotional value tied up with my new charges. I called again and the customer service person was very nice, but after several days the problem still had not been fixed. I called again and again got a customer service person that goes on and on without understanding the problem.

I finally spoke to a manager who was helpful and HOPEFULLY the problem will finally be resolved. This is the only time I have had a problem with a credit card and from other reviews this seems to happen a lot with BML. Either the company is trying to defraud customers or they are incompetent. I strongly advise people to not use BML.

MILTON, FLORIDA -- I accidentally paid my $288.10 bill. I meant to make a payment of $100.00 and accidentally paid $1000.00. I was on medication at the time and made a mistake. I paid the bill and it was cashed on August 12th. I called on August 13th and was told that the check for the difference of $711.90 would be sent out that day and I would have it by Friday the 14th... Monday at the latest. I didn't receive it on Friday and called back, check had not been sent out. Told it will be sent out that day! Didn't receive it on Monday the 19th and called back. Check was sent out. Still didn't get it and I still had a 711.00 credit on my account so I figured it was not sent.

I spoke with a manager and was told it was not sent out and it wouldn't be sent out for till the 29th of August!!! The check had already cleared and they wouldn't give me my money back! "We will make an exception and send it out today." Nope credit still there the next day. Called on the 21st and they said it was sent out that day. It is now the 27th and my money is still not here.

I have bills that are now past due and they will not do anything till 30 day after the day the check was sent. When was it sent??? This is my money... not theirs to do what they want with it. Also, they are changing banks at the end of the month and I believe that they will not give me a check and pass the buck and then I will be lost in the shuffle.

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