PayPal Credit Basics

What is PayPal Credit?

PayPal Credit is a line of credit offered by Comenity Capital Bank that gives you the flexibility to pay for your purchase now, or pay over time. It’s easy to apply and easy to use.

View PayPal Credit terms and conditions.

How do I apply for PayPal Credit?

When you choose to apply for PayPal Credit, you’ll be asked to provide your date of birth and your Social Security number, and then to agree to the terms and conditions. You’ll know within seconds if you are approved. And here’s the cool thing: your PayPal Credit account will be linked to your PayPal account and you’ll see it as a payment option every time you check out with PayPal.

Is there an annual fee to use PayPal Credit?

Nope! There is no annual fee to use PayPal Credit. See the Terms and Conditions.

Why should I use PayPal Credit for my PayPal purchases?

Get more time to pay when you check out with PayPal and pay with PayPal Credit at most places PayPal is accepted. Plus, score valuable discounts and offers, like special financing on purchases of $99 or more, when you use PayPal Credit. You can also review all of your purchases and pay your bill through PayPal.com.

What if I do not currently have a PayPal account?

As the first step of the application process for PayPal Credit, it will ask you to sign into your PayPal account or give you the ability to sign up for one. Once you’ve signed up for a PayPal account, you can begin the application for PayPal Credit. Signing up for a PayPal account is free.

Do I have a Credit Line and how much will it be?

Yes you do. Here's how it works: after you've been approved, Comenity Capital Bank will open a PayPal Credit account with a Credit Line of at least $250.

You can continue using PayPal Credit to make purchases. If those purchases cause your outstanding balance to exceed your credit line, then you will be evaluated for a credit line increase. This evaluation happens seamlessly during the checkout process. You don't need to do a thing. Best of all, your checkout won't be slowed down. Here's an example of how this works:

• If your first purchase using PayPal Credit is $150, your initial credit line will be at least $250.

• If you make another purchase for $300 before your bill is paid, PayPal Credit will determine during checkout if your credit line can be adjusted to cover the $450 worth of purchases.

• If you then pay $350 toward your first bill, you will have $350 remaining on your credit line. If you want to make another purchase using PayPal Credit for more than $350, PayPal Credit will determine during checkout if your credit line can be adjusted again.

You can always continue to make additional purchases up to your outstanding credit line, and we will consider increasing your credit line when your purchase goes above it.

What is the Annual Percentage Rate (APR)?

The Annual Percentage Rate for standard purchases and cash advances on a PayPal Credit line is 19.99%, although some special offers have a lower, promotional APR. The Minimum Interest Charge is $2.00. Of course, you can choose to pay your entire balance by the payment due date to avoid interest charges. Learn more about the interest rate.

What does ‘Subject to Credit Approval’ mean?

PayPal Credit is a credit account that you can use to make purchases and send money. Comenity Capital Bank will review and consider your credit report and other credit related information prior to opening your account and establishing your credit line. Creditworthiness is determined by Comenity Capital Bank. This process happens in a matter of seconds as part of the PayPal Credit checkout process. Once you are a PayPal Credit customer, you can use your credit line to make purchases. If you make a purchase that would cause your outstanding balance to go above your credit line, we will review your credit history and history with PayPal Credit to instantly determine whether to increase your credit line.

Using PayPal Credit

How do I select PayPal Credit as my payment source?

Once you have a PayPal Credit account, when you check out with PayPal you’ll have the option to select PayPal Credit as your payment method. You can also set PayPal Credit as your default payment source. That way, as long as you have available credit in your PayPal Credit account, every purchase you make with PayPal uses your PayPal Credit account as the payment method. Additionally, some merchants have a PayPal Credit option at checkout. If they do, you can simply choose that option.

How does the "No Payments + No Interest if paid in full in 6 Months" offer work?

You’ll have the option to make no payments for 6 months, on qualifying purchases. You will receive monthly statements and can make payments at any time. As long as you pay in full by the promotion expiration date, you will not be billed interest for that purchase. If you do not pay in full, interest will be calculated from the transaction posting date (which is usually within a few days after the purchase date) and will be billed to your account.

How do I increase my credit line with PayPal Credit?

You can continue to use PayPal Credit for purchases and, if those purchases cause your outstanding balance to exceed your credit line, we’ll evaluate you for a credit line increase. Your eligibility for a credit increase is determined by your credit history and customer history with PayPal Credit, and the Terms and Conditions. This will happen automatically during checkout, so you don’t even need to ask.

Do you check my credit report every time I make a purchase?

No. A credit report is reviewed when you apply for PayPal Credit and occasionally when you attempt to increase your credit line. Periodically, we’ll obtain updates of your report, but these updates have no impact on your credit score. If for any reason your Credit Line is decreased, you’ll be notified of the reason in writing.

Does PayPal Credit protect me from liability for unauthorized charges?

Yes! PayPal Credit provides “zero fraud liability” protection, the same protection provided by most major credit cards. This means you are not responsible for unauthorized charges. And we verify your identity with top-of-mind information such as your date of birth and the last four digits of your Social Security number, so there’s no account number that can be lost or stolen.

Does PayPal Purchase Protection apply to my PayPal Credit purchases?

When you check out with PayPal and choose PayPal Credit as your payment method, the purchases are covered under PayPal's Purchase Protection program.

Where else can I use PayPal Credit?

PayPal Credit is available on purchases at thousands of stores that accept PayPal. It’s also available for purchases on eBay and exclusively at thousands of other online stores.

Can I use PayPal Credit to send money?

Yes! You can now send money with PayPal Credit. It’s easy—simply log in to PayPal.com and select the Send Money tab. Enter the recipient’s email address or phone number, amount, and transaction type. Click Change to select PayPal Credit as your payment method, then confirm your payment details. Your transaction will appear on your monthly PayPal Credit statement. When you use PayPal Credit to send money, a flat fee of 2.9% + $.30 US dollars (USD) per transaction is included in your payment total. This is the same fee you pay when you use a debit or credit card to send money through PayPal. This feature is not available on mobile devices.

Managing Your PayPal Credit Account

You’ll receive monthly statements and can choose to pay in full or over time (interest charges may apply). At any time you can pay your balance due from either your PayPal balance or your bank account conveniently on PayPal.com.

You can also mail your payments in to:

PayPal Credit
P.O. Box 105658
Atlanta, GA 30348-5658
Yes, you will be charged a late fee for each month that the minimum payment is not paid by the payment due date. The first time you’re late, the amount of the late fee will be the same amount as the missed payment, up to $25. If you’re late again, the late fee will be up to $35.
If you want to see how to view your statements, schedule a payment or make PayPal Credit your default payment source, visit How it Works.

If you would like to manage the settings of your account (update your email address, change your preferences, etc.) which would be for both your PayPal and PayPal Credit accounts, visit the PayPal Help Center.
Yes there is. Our customer service department is available to assist you with your PayPal credit related issues. Please call us at 1-866-528-3733 and we will do our best to help. Our Service Hours are:
Monday - Friday: 8 AM - 11 PM Eastern Time
Saturday - Sunday: 9 AM - 9 PM Eastern Time

Linking PayPal Credit (Formerly Bill Me Later) and PayPal Accounts

What if my PayPal account is blocked or closed?

If your PayPal account is blocked or closed, you will not be able to go through the online linking process. Please call PayPal Credit Customer Service at 1-888-221-1161 and we will do our best to help.

Why should I link my PayPal Credit and PayPal accounts?

Linking your accounts means you’ll be able to use PayPal Credit at most places PayPal is accepted. You can also get six months to pay for your purchases of $99 or more through PayPal Credit - and you could score deals such as free shipping, valuable discounts and promotional offers! By linking, you can also easily manage both accounts—pay your bill, view recent activity, set payment reminders, and much more at PayPal.com.

I have a separate PayPal Credit (formerly Bill Me Later) account. How do I add it to my PayPal account?

It’s easy! There are three ways to link your PayPal Credit and PayPal accounts:

• Log in to your PayPal account, click Profile, select “PayPal Credit,” then click Update Preferences.
• Click here or enter billmelater.com/linkpaypal into your browser for step-by-step instructions.
• The next time you’re checking out with PayPal, just select PayPal Credit as your way to pay.

What happens if I already have a PayPal cards (Smart Connect, PayPal MasterCard or eBay MasterCard) product linked to my PayPal account?

If you already have a PayPal cards product linked to your account, you will not be able to add PayPal Credit to the same account.

Will my funding sources transfer when I start managing my account on PayPal.com?

No. Since the requirements for PayPal Credit and PayPal differ, we cannot add your current funding sources without you going through approval and set up process of adding them yourself. This is also a security feature to make sure you are in control of who has access to your accounts.

Will my previously scheduled payments transfer when I start managing my account on PayPal.com?

Yes. Any payments you have already scheduled will still process on time from your previous funding sources. You’ll even see them process through your new PayPal.com interface, even though you will not be able to access those funding sources until you add them directly into your PayPal account.

Will all of my information be carried over to PayPal.com?

When you link PayPal Credit to your PayPal account, all credit history will automatically transfer over. The linking process is what will enable statements, transactions, account history and profile information to be displayed on PayPal.com. However, for security reasons, funding sources associated with your PayPal Credit account will not automatically transfer over PayPal.com. You will need to manually establish or update any links from financial institutions (such as your bank accounts) to PayPal Credit. We recognize this poses a minor inconvenience for customers, but for security reasons this information will not automatically transfer.