How to Use PayPal Credit

Pay later for virtually anything online using PayPal credit

Woman holding a pink blouse she took out of a shipping box

Westend61/Getty Images 

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

What is PayPal Credit?

According to PayPal, 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." The line of credit is very simple to use and even simpler to apply to. It's virtually the same as a credit card or line of credit and the application process is similar.

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.

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

According to PayPal, the variable APR for purchases and cash advances using your PayPal Credit account is 25.99% as of 10/01/2018. This APR will vary 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?

For individuals who already use PayPal, PayPal Credit works as another payment option when you check out. As you make your purchase and check out using PayPal, you can select PayPal Credit as your payment method. Don't have a PayPal Credit account at this step? You can simply apply during any transaction in a few seconds.

How to Apply for PayPal Credit During Your Purchase

  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'll be asked to create an account. If you have an account, go ahead and log in.

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

  3. After you create your account, you'll be given the option to use PayPal Credit. Select this option, then follow the simple 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? Simply visit PayPal's website, quickly sign-up for a PayPal account, then proceed to apply for PayPal Credit.

  1. To get started, log into Paypal.com.

  2. Select Apply for PayPal Credit.

    Screenshot of PayPal Credit application website

    You must be logged into your PayPal account to use this method. Be sure to log in prior to getting started.

  3. On the next screen, you'll be given information regarding PayPal Credit's interest rates and promotional rates. Select Apply Now to get started on the application process.

    PayPal's Apply Now screen on desktop
  4. During the application process, you'll need to enter your social security number and date of birth. Once these are entered, select Submit. You'll receive an answer instantly.

How to Use PayPal Credit to Make a Purchase

Using PayPal Credit to make a purchase is simple and fast. To make your first purchase, you'll simply visit a retailer that accepts PayPal, fill up your cart, and proceed to checkout.

  1. Regardless of your retailer, you'll need to choose a payment option to continue. To use PayPal, 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 will allow you to review your order one more time with the retailer. If everything looks good, you can 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, including the status of your order.

All About PayPal Credit Payments

Just like any line of credit, PayPal expects you to make monthly payments on your purchases. PayPal allows you to either pay in full each month or over time in the form of a minimum payment. 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 pay using the pay by phone service through PayPal.

Make a Payment Through Mail

To make a payment through mail, send your payment 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 payment. If you wish to make your payment by phone, you can call PayPal's customer service at 1-866-528-3733.

How to Make a Payment Online

  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 wish your payment to be paid on.

  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 will send you monthly statements online, both via email and through typical mail.
  • What fees are associated with the service? PayPal Credit does not 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.