How to Use PayPal Credit

Pay later for virtually anything online using PayPal credit

PayPal is known as a universally safe way to pay for purchases made online. Whether you're buying groceries or a new gadget, it offers pay now options or a pay later option through PayPal Credit.

What Is PayPal Credit?

PayPal Credit is "a line of credit issued by Synchrony Bank that gives you the flexibility to pay for your purchase now or pay over time," according to PayPal. It's very simple to use and even simpler to apply for.

Who Accepts PayPal Credit Online?

PayPal Credit is accepted wherever PayPal is accepted, including eBay, Etsy, Walmart, and thousands of other stores online. If your favorite online retailer accepts PayPal, you can use your credit account there too.

What is the Annual Percentage Rate or APR for PayPal Credit?

The variable APR for purchases and cash advances using your PayPal Credit account is 25.99% as of 9/1/2019. This APR varies with the market based on the Prime Rate, defined in the credit card agreement. The minimum amount of interest charged is $2.00.

How Does PayPal Credit Work With PayPal?

If you already use PayPal, PayPal Credit works as another payment option when you check out. Don't have a PayPal Credit account at this step? You can apply during any transaction in a few seconds.

How to Apply for PayPal Credit During Your Purchase

If you want to apply for PayPal Credit during checkout, follow the instructions below:

  1. When completing a purchase with a retailer that accepts PayPal, select PayPal Checkout as your payment option.

  2. If you don't have a PayPal account, you're asked to create one. If you have an account, go ahead and log in.

    When you create a PayPal account for the first time, you're asked for your credit or debit card information. Have this handy before you continue.

  3. After you create an account, you have the option to use PayPal Credit. Select this option, then follow the instructions by providing your Social Security number and date of birth. You'll receive your approval in seconds.

How to Apply for PayPal Credit Using Your Account

Already have a PayPal account? Don't want to wait until you're ready to make a purchase? You can apply for PayPal Credit at anytime using their online approval process.

Don't have a PayPal account? Go to the website, quickly sign-up for one, then proceed with the PayPal Credit application.

  1. Log into

  2. Select Apply now and pay over time with PayPal Credit.

    Screenshot of a PayPal account screen. The option to apply for PayPal Credit is on the right.
  3. Confirm your billing address on the next screen. If it's up-to-date, select Continue. If it needs updating, select Update. Enter the new billing address, then select Continue.

    Screenshot of the PayPal Credit application process
  4. Next, you need to enter your personal information, including Social Security number and date of birth. Once these are entered, select Agree and Review Terms. Once your application is finished and submitted, you should receive an answer instantly.

How to Use PayPal Credit to Make a Purchase

Making purchases with PayPal Credit is simple and fast. Just visit a retailer that accepts PayPal, fill up your cart, and proceed to checkout. Then, follow these steps:

  1. Regardless of which retailer you use, you need to choose a payment option to continue. Choose your PayPal account as the payment option for your purchase.

  2. When the PayPal window appears, make sure you select PayPal Credit, then select Continue to move on.

  3. Once complete, PayPal allows you to review your order one last time. If everything looks good, submit your order.

Want to see the status of your order? You can log into your PayPal account to view your PayPal Credit order history.

All About PayPal Credit Payments

Just like any line of credit, PayPal expects you to make monthly payments on your purchases. You can either pay in full each month or pay over time with minimum payments. You can make payments to your PayPal Credit account online using your PayPal balance or your bank account. You can also mail your payment in or use the pay-by-phone service through PayPal.

How to Make a PayPal Credit Payment Through Mail

To make a payment through mail, send it to:

PayPal Credit
P.O. Box 71202
Charlotte, NC 28272-1202

Be sure to make your check payable to "PayPal Credit" and include your payment coupon or write your account number on your check. If you wish to make your payment over the phone, you can call PayPal's customer service at 1-866-528-3733.

How to Make a PayPal Credit Payment Online

If you prefer to make a payment online, do the following:

  1. Log into your PayPal account.

  2. On the left side of the page, select Make a Payment under your PayPal Credit.

  3. Choose your amount, your payment method, and the date you want your payment sent.

  4. Select Continue, then review your payment details. Once everything looks good, select Pay to make your payment.

Make sure your credit/debit card information is correct. If you're paying using your PayPal balance, make sure that's selected.

PayPal Credit Frequently Asked Questions

PayPal Credit is a unique way to pay for your purchases over time at any retailer that accepts PayPal as a payment option. Still have questions? We have an answer.

Is PayPal Credit an Actual Credit Card?

Although it's a line of credit, you won't receive a physical credit card. Instead, it's a virtual line of credit using PayPal.

Is It Safe?

PayPal is one of the safest payment methods online, meaning PayPal Credit carries that same safety.

How Do I Receive My Bill?

PayPal sends you monthly statements online, both via email and through physical mail.

What Fees Are Associated with the Service?

PayPal Credit doesn't charge an application fee or annual fee for the service. There's also no penalty rate. However, for late payments, the first fee is $25 with consecutive late fees being up to $35.

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