What is PayPal Credit? An Explainer for 2025
PayPal Credit is a digital, reusable credit line offered to PayPal users, allowing them to make purchases online and pay for them over time. It functions similarly to a virtual credit card but is integrated directly into the PayPal wallet, offering a seamless way to finance purchases everywhere PayPal is accepted.
How Does PayPal Credit Work?
PayPal Credit is essentially a line of credit that you can apply for through your PayPal account. If approved, it becomes a payment option at checkout. You don't receive a physical card; instead, you simply select "PayPal Credit" as your payment method when making a purchase.
The service is built around promotional financing offers, which are its main appeal.
Key Features of PayPal Credit
Promotional Financing Offers
The standout feature of PayPal Credit is its special financing deals. The most common offer is:
"No Interest if paid in full in 6 months on purchases of $99 or more."
This means that if you spend $99 or more in a single transaction, you won't be charged any interest as long as you pay the entire balance back within the six-month promotional period. However, it's crucial to understand that this is a deferred interest offer. If you fail to pay the full amount by the end of the term, interest will be charged retroactively from the original purchase date.
Easy Application and Integration
Applying for PayPal Credit is a quick process that can be completed online in minutes. Once approved, it's automatically added to your PayPal account, making it immediately available for use at millions of online stores.
Purchase Protection
Like other PayPal transactions, purchases made with PayPal Credit are covered by PayPal's Purchase Protection program. This can provide a refund if an item doesn't arrive or is significantly different from its description.
Pros and Cons of Using PayPal Credit
Advantages
Convenience: It's seamlessly integrated
