Lines of credit can be anywhere from $250 up to $20,000, says Schmidt. Like other lines of credit, how much you can qualify for depends on your individual credit and circumstances. Is there a limit to how much money you can spend with PayPal Credit? If you have an established history and a score above 650 – and especially if your score is in the high 700s or above – you’ll likely snag lower rates and better perks somewhere else. If the amount owed is $28 or less, the late fee won’t exceed $5. PayPal Credit charges either $28 or $39 for late fees, depending on your payment history – as long as that late fee doesn’t exceed the balance owed. If you have an established history and a score above 650 – and especially if your score is in the high 700s or above – you’ll likely snag lower rates and better perks somewhere else, McClary adds. Currently, the average card APR for consumers with bad credit is 24.43%, while the average rewards card APR is 16.03%. This is a typical APR for someone who is new to credit, says McClary. What are the costs and fees associated with PayPal Credit?Īs of March 2020, the variable APR is 25.49%, according to Tom Hunter, a PayPal spokesman. Once you apply, the company will check your credit history, and many customers get an “answer back in less than a minute,” says Schmidt.Įxisting “customers may request a credit line increase through the PayPal app, website or by calling customer service,” according to Julia Bass, spokeswoman for PayPal Credit. When you select PayPal as your method of payment, it will give you the option to apply for PayPal Credit. You can apply online through PayPal’s website or through online stores that accept PayPal. See related: How to pay bills and receive payments using Plastiq Where do you apply for PayPal Credit? You will also begin owing interest on this payment immediately because PayPal treats it like a cash advance. Just like you would with a debit or credit card, you’ll have a one-time transfer fee of 2.9% of the total amount sent, plus a 30-cent flat fee. It’s possible to use PayPal Credit to send money to friends and family, but it doesn’t come cheap. With this feature, there’s also no retroactive interest, Schmidt says. So it can be smart to make a repayment plan that leaves you with at least a month to spare, says Bruce McClary, vice president of communications for the National Foundation for Credit Counseling.įor purchases of $30 or more, some merchants allow you to split that into three monthly payments and no interest charges. If you don’t pay it off within the required period, you’ll owe interest on the entire repayment period. Some retailers also offer special deals extending the interest-free period. But it does offer some special payment deals, like longer interest-free terms.įor purchases of $99 or more, PayPal Credit gives users up to six months to pay off the balance interest-free, says Susan Schmidt, vice president of consumer credit for PayPal Credit. Unlike PayPal’s credit cards, PayPal Credit doesn’t offer rewards. You can set it as your default payment method, just like you would a debit or credit card. Your credit line is linked to your PayPal account. PayPal Credit is an unsecured line of credit that you apply for and can use online anywhere PayPal is accepted. What is PayPal Credit and how does it work?
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