How To Use PayPal Credit

Almost everyone will require a line of credit at some point in their life. It might be to start a business, or buy a home. Layoffs at your work might see you in a position where you need a little help to make the bills. Whatever the reason, the first step is to know your credit score. From there, you can gain an idea of your options. Plus, you'll have a better idea if that identity theft protection you've been employing has been doing its job. Once you know where you stand, applying for an option like PayPal Credit might just be your best bet to being able to afford things in life. This video was made with Ezvid Wikimaker.

How To Apply For PayPal Credit

  1. Go to
  2. Click on "Personal" at the top of the page
  3. Select "PayPal Credit"
  4. Click on "Apply Now"
  5. Read through the details of the credit agreement
  6. Click "Apply Now" again
  7. Sign into (or create) your PayPal account
  8. Confirm your billing address
  9. Enter your date of birth, social security number, and phone number
  10. Click "Agree and Review Terms" to submit

Comparing Instant Credit Services

PayPal isn't the only company that offers this service. None of the alternatives are exactly the same, however. Researching them can help you make a more informed decision.

Feature PayPal Credit Klarna Affirm
Reports to credit bureaus
Get approved in seconds
Late fees
Pay after you receive the item
Higher interest rates than average

Avoiding PayPal Chargebacks

Why Should I Use PayPal Credit?

When it comes down to it, PayPal Credit should be treated like any other form of credit. It's a big decision to make, and should be done so responsibly. The service has its positive aspects and its negative ones.

Good Bad
No payments or interest for six months on larger purchases High interest rates when they kick in
It can't hurt your credit score It can't benefit your credit score
Accepted wherever PayPal is No card means having to use the mobile app
Approval process takes minutes at most Can lead to impulsive purchasing


The biggest benefit to PayPal Credit is also its biggest detriment. They don't report your activity to a credit bureau. If you need credit fast and don't have a great score, this can be a boon. As long as you aren't so down in the dumps that you get rejected, it means there is one less stressor hanging over you. On the other hand, using it diligently won't be reflected if you need to look for other forms of financing. If you're looking for a low-stakes entry to the credit market, PayPal Credit might be perfect for you.

In Depth

If you shop online, you've probably used PayPal to make a purchase at some point. Many websites have even integrated it as part of their checkout process. Because of that, all you have to do is log in to your account and you can pay with one click. With 200 million account holders and an average of 193 transactions per second, it's safe to say that PayPal is one of the leading online payment platforms. But what you may not know is that PayPal also offers a credit service.

In 2014, the company rebranded its popular Bill Me Later service as PayPal Credit. It's essentially a line of credit through Comenity Capital Bank that's built into your PayPal account. It allows you to decide whether you want to pay for a purchase up front or in smaller installments over time. There's no annual fee. If you already have an account, you won't need to create another one if you want to use the credit service. You can simply add it to your existing PayPal account and manage everything in one place. There's no physical credit card, either. Everything is done online and through their mobile app.

Applying is easy. Go to and click on "Personal" at the top of the page. From the drop-down menu, select "PayPal Credit" and click on "Apply Now". Here, you can read through the details of the credit agreement, then click "Apply Now" again. Sign in to your account or create one, then you'll be asked to confirm your billing address. Next, you'll need to enter your date of birth, social security number, and phone number. Click "Agree and Review Terms" to submit your application. You will get a decision in seconds, and if you're approved, the credit line will be added to your account.

Applying is easy.

To decide whether or not to approve your application, PayPal will check your credit score just like a bank or car dealership would before offering you a loan. But what's different about PayPal Credit is that they do not report any positive or negative information to the credit bureaus once you're approved. This means that missed payments won't lower your credit score. However, it also means that if you're a good customer and make all your payments on time, it won't improve your score either. But this doesn't mean you can get away with not paying your bill. They could close your account if you miss enough payments, and late fees add up quickly.

It can be used anywhere that accepts PayPal as a form of payment. Thousands of online retailers accept it, and you can even use it in-store in some places, like Home Depot and Dollar General. You can find a list of shops near you that accept PayPal using the store locator in the mobile app. If you want to use your credit in stores, you'll need to make it your preferred method of payment first. Login to your account and go to "Settings". Click on "Payments", then scroll to the bottom of the page to "Your preferred way to pay". Next to "In-store purchases", click on "Change" and select your credit account, then click "Save".

When you checkout using PayPal in stores, there are two different methods. It's important to know that since you won't have a card, both methods require you to use the mobile app, so be sure to download it and login before making your purchase. Some retailers will ask for the phone number associated with your account and your PIN number. After entering your phone number and PIN, a QR code will appear on your mobile device that the cashier can scan. If you don't have a PIN number for your account, you can set one up under your security settings. Next to "Mobile PIN", click "Create" and enter your four to eight digits, then click "Add or change PIN".

If you don't have a PIN number for your account, you can set one up under your security settings.

Some stores will ask for a code instead of a PIN number. In this case, you'll need to use the PayPal mobile app to generate a one-time passcode for that transaction. Open the app and scroll to the bottom, then click on "In Store". This will give you a list of places where you can use your PayPal Credit based on your location. Once you've chosen the store where you want to shop, a four-digit code will appear. This code will serve as your PIN number for the transaction, and will only work one time at that particular store.

For most purchases of $99 or more, you have the option of no payments and zero interest for six months, but it's always a good idea to pay it off early to avoid interest later. You can make payments on your PayPal Credit through your computer or mobile device, or send them a check. To pay through your web browser, login to your account and go to "PayPal Credit" on the left side of the page. Next, click on "Make a payment", then enter your information. Click "Continue", review your details and click "Pay". To pay through the app, tap on "Manage PayPal Credit", then go to "Make a payment", fill in your information, and tap "Pay".

If you're looking for rewards like cashback bonuses and airline miles, or want to build your credit, there are other cards that would be better suited for your needs. But if you already use PayPal and find the zero interest offer appealing, their credit service is easy and convenient to add to your account. Check it out at to see if it's right for you.