PayPal Credit Guides

PayPal Credit

For most users, when they usually use PayPal to pay for online shopping, they usually use an account balance or associated credit card. However, for PayPal users in the United States, you can actually use PayPal Credit to pay. So what is PayPal Credit? What is the minimum amount?

What is PayPal Credit?

  1. PayPal Credit is a credit payment product launched by PayPal that allows users to choose to pay in installments when shopping without paying the entire amount. Users can choose to repay in 3-month or 6-month installments, and the monthly repayment amount depends on the purchase amount and term.
  2. PayPal Credit is a credit service launched by the world-famous payment platform PayPal. It is a credit limit provided by PayPal to users. When users check out for shopping, they can choose to use the credit limit in PayPal Credit to pay, so they do not need to use their own account. funds. In fact, to put it simply, PayPal Credit functions like a credit card, and you can freely use the credit limit for consumption. It should be noted that the interest rate of PayPal Credit is not low. According to the information on the official website, its annualized interest rate (APR) is basically around 20%. According to Createsomes research, once you qualify for PayPal Credit, you will receive a minimum credit limit of $250. In addition, there is no annual fee to use these credits. For purchases over $99, you won’t have to pay any interest charges if you can pay off the bill within 6 months. For friends who often shop online, this is quite attractive.
  3. PayPal Credit is subject to credit approval as determined by the lender, Synchrony Bank, and is available to US customers who are of legal age in their state of residence. The minimum purchase required is before shipping and tax. Offers are not valid on previous purchases, returns, or exchanges.

Reference links: Introduction to PayPal Credit Shopping

No Interest if paid in full in 6 months of purchases of $99 or more

Purchases of $99 or more

Get 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.
  • A minimum monthly payment is required and may or may not pay off the promotional purchase by the end of the 6 month period.
  • No interest will be charged on the purchase if you pay it off in full within 6 months. If you do not, interest will be charged on the purchase from the purchase date at the Purchase APR applicable to your account.
  • For New Accounts: Variable Purchase APR is 28.49%. The APR is accurate as of 3/1/2023 and will vary with the market based on the Prime Rate (as defined in your credit card agreement). Minimum Interest charge is $2.00.
  • Individual items that are less than $99 qualify for special financing when combined for a total of $99 or more in a single transaction.
  • Multiple separate transactions of less than $99 per transaction cannot be combined to meet the minimum purchase amount.

Purchases of $98.99 or less:

Buy now and pay over time with PayPal Credit when you spend $98.99 or less.

  • If you pay your balance in full each month by the payment due date that is on your statement, you can avoid paying interest.
  • Or, make minimum monthly payments, or any additional amount of your choosing, until you’ve paid off your balance according to your standard account terms. Please note, that interest charges may apply.
  • PayPal will send you email reminders when your payments are due. You can also keep track of your account and view your statements online at any time.

Why did PayPal launch this product?

PayPal Credit was launched to help consumers shop more easily. The option to pay in installments can ease the financial burden when purchasing important items. In addition, PayPal Credit also hopes to attract consumers who are interested in purchasing large-ticket items but do not have sufficient credit.

What are the benefits of PayPal Credit?

In addition to convenient installment payments, PayPal Credit has other advantages. First, users have longer to repay borrowed money, which makes it easier to plan spending. Secondly, PayPal Credit sometimes offers interest-free periods, which allow consumers to pay in installments within a certain period of time without paying additional interest. Finally, PayPal Credit is also a good option for small businesses that need short-term loans.

What are the interest rates and fees for PayPal Credit?

PayPal Credit’s interest rates vary and depend on the borrower’s personal credit rating. In addition, if users fail to repay on time, additional fees and interest may be incurred.

Here are the fees that PayPal Credit may charge:

Types of fee

Late payment fees
Late payment interest26.9% annual interest rate
Excess overdraft fees£12

PayPal Credit Additional information

  • If your PayPal Credit application has been approved, we start you off with a minimum credit line of at least $250.
  • For New Accounts: Variable Purchase APR is 28.49%. The APR is accurate as of 3/1/2023 and will vary with the market based on the Prime Rate (as defined in your credit card agreement). Minimum Interest charge is $2.00.
  • If you miss a payment your late fee could be up to $41, even less if it’s your first time.


The launch of PayPal Credit provides consumers with additional shopping options, especially for those interested in purchasing high-value items. Although PayPal Credit offers an interest-free period, please make sure to repay on time within the period to avoid incurring additional interest and fees.

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