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How to Get Cash Advance from PayPal Credit

How to Get Cash Advance from PayPal Credit

Most people are familiar with PayPal Credit already. But for those who don’t – It’s a line of credit provided by PayPal that allows PayPal users to make purchases immediately and pay for them later.  However, unlike regular credit cards or loans, PayPal Credit does not give you a physical card. Instead, you can use the money digitally through your linked PayPal account. However, in this post, you will learn the trick to get cash advance from PayPal Credit.

There are times when you might prefer to have actual cash rather than shopping online. How do you do this? Your choice is to get a cash advance using your PayPal Credit. Even though I discuss this topic, if it’s possible, avoid a cash advance.

I have looked into this and figured out the steps to help you get cash from your PayPal Credit. In this article, I will be showing you how to get cash advance from PayPal Credit, alongside some other important stuff that has to do with PayPal Cash Advances.

How to Get Cash Advance from PayPal Credit

How to Get Cash Advance from PayPal Credit

Getting cash from PayPal Credit is a bit different compared to getting cash advances from regular credit cards. With PayPal Credit, you can’t just take out money from an ATM or use it directly for cash purchases.

According to PayPal, Cash Advances are basically extensions of credit made on the account to you, when you choose the PayPal Credit Payment System to send money using the services offered by PayPal. This means you can get a cash advance by choosing to send money to someone.

When you do this, PayPal lends you the amount you want to send, and that amount is sent to the person you chose via the Send Money feature.

In simpler terms, the only way to get a cash advance is via any of the two methods given below:

  1. You can send PayPal Credit to someone else’s PayPal account and have them withdraw it for you using their linked bank account. This is the official way.
  2. You can send PayPal Credit to another one of your PayPal accounts and then withdraw it to your linked bank account. This is a workaround method, so it’s not officially recommended by PayPal.

While I would give you the lowdown on using either of these methods to get cash advance from PayPal Credit, it’s important for users to note that transfers made to other PayPal accounts won’t qualify for PayPal’s six-month no-interest offer. Also, the interest on these cash advances starts right away, with an APR of about 19.99%.

Moreover, PayPal usually charges around 3% as a fee for the transaction. Remember, there might be extra limits on sending money if PayPal Credit sees any potential risks during the transaction.

One more thing to keep in mind; using a credit card to get cash advances isn’t really recommended. Some credit card companies charge high fees for taking out cash using your credit card. This just adds more financial stress on you.

1. You can send money to someone else’s PayPal account

… and have them withdraw it for you using their linked bank account. If you are interested in getting a cash advance from PayPal Credit, the first method to do this is by sending money to someone you trust, like a family member or friend.

Then, they can either withdraw for you via a linked bank account or send that money back to you so you can then withdraw it using the bank account connected to your PayPal account.

You can also decide to make online purchases with the money since it is going to be added to your PayPal balance. But for the purpose of this article, that doesn’t really count as ‘Cash Advance’ so we’d leave it out.

So, let’s get down to business so you can get cash advance from PayPal Credit.

  1. Log in to your PayPal account.
  2. Go to the section on the website where it says Send or Request Money.
  3. Click on the option to Send Money.
  4. Choose who you want to send the money to. You can either enter their email address or pick them from your contact list if they’re already saved on PayPal.
  5. Enter the amount of cash you want to send. Remember, this can’t be more than the credit limit available on your PayPal Credit.
  6. When you’re asked to pick a way to pay, make sure you select PayPal Credit. This step is important so that the transaction counts as a cash advance.
  7. Take a good look at all the details of the transaction, like the amount and the person you’re sending money to.
  8. Once you’ve checked everything, click the Send button to start the transfer.

At this stage, the other person already has the money in their PayPal account. So you can simply ask them to proceed to withdraw the money for you via a bank account linked to their PayPal account or you can choose to follow the steps below if you would rather have them send the money back to you to withdraw yourself.

  1. Ask them to log into their PayPal Account.
  2. In their PayPal Account, they should choose the Send Money option.
  3. They need to enter your email address, and the amount of money, and select PayPal Balance.
  4. Click on the Send button to initiate the transfer (note that they might be charged a small fee, which obviously you may have to refund).
  5. The money is now sent to your PayPal Account and it will be instantly added to your PayPal Balance.
  6. Now, log into your own PayPal Account.
  7. Choose the option Transfer to your bank. For this step, it’s important to have a bank account or a linked debit/credit card in your PayPal Account.
  8. PayPal will start transferring the money from your PayPal Balance to your linked bank account.
  9. The transfer process usually takes around 2 to 3 days. The exact time depends on how quickly your bank processes the incoming funds.

Now, before we move to the second method, we’d like to reiterate some things we spoke about earlier when using PayPal credit to send money to others:

  • One, interest starts right away when you get cash advances from PayPal Credit. So, it’s really important to know about any extra charges and interest rates before you send any money. 
  • Two, the maximum amount of funds you can send using PayPal Credit is usually limited to your available credit limit.
  • And three, PayPal might also add more limits based on things like how risky the transaction seems.

Remember, all of this also applies to Cash Advances. No matter what PayPal calls it, these are technically PayPal money transfers in the actual sense of it.

2. Send Money Between Two PayPal Accounts You Own

You can send money to another one of your PayPal accounts and then withdraw it to your linked bank account. Note that PayPal only allows one person to have one personal and one business account. And you can’t use this method for personal to business that you own. Therefore, you need to create distinct accounts – the second one can use the details of your family member or friend. Just obtain their permission first.

This is a workaround method, so it’s not officially recommended by PayPal. This method is also a clever workaround for sending money to yourself. So we’re basically answering the question “Can I send money to myself with PayPal credit?” at the same time.

One advantage of using PayPal Credit for these transfers is that there are no fees for personal payments- PayPal Credit plus free transfers, what’s not to like?

Follow these steps to send money to yourself using PayPal Credit:

  1. Start by logging into the PayPal account you want to use for sending money.
  2. At the top of the page, find the “Send & Request” tab and click on it.
  3. Choose the option that says “Send to Friends and Family.”
  4. Enter the email address or mobile number that belongs to your other PayPal account.
  5. Tell PayPal the amount you want to send and pick the type of money you’re using.
  6. Before you hit the “Send” button, check everything once more to be sure.

After this, log into your other PayPal account. Then, instead of sending the money back to the first PayPal account (the PayPal account you sent the Cash advance from initially), withdraw it to a bank account that’s linked to your PayPal. This way, you won’t have to pay any fees for moving the money around.

Is Sending Money Through PayPal Considered a Cash Advance?

Just to be sure we are on the same page, we’re talking about the normal way of sending money to others with your PayPal account and not via PayPal Credit.

The thing is when you use PayPal to send money, it’s important to know that this transaction is not considered a cash advance. Unlike traditional credit card cash advances that usually come with extra fees and high interest rates, sending money from one PayPal account to another doesn’t have those same costs.

If you use a credit card that’s linked to your PayPal account, some credit card companies might treat this like a cash advance. That could mean extra fees.

So, the smart move is to use money from your PayPal balance or a bank account linked to PayPal. This way, you can avoid any extra charges. Always stay informed about how different ways of paying can affect your transactions. That’s how you make good decisions when you’re using PayPal to send money – easy, safe, and smart.

Is PayPal Cash Advance Free?

No. Since using PayPal Credit is not free, this means cash advances do not come free either. When you get cash through PayPal Credit, there are different fees involved. Let’s break down the main expenses you might face when you make a cash advance with PayPal:

  • Interest (APR). PayPal Credit has a Daily Periodic Rate of 0.05477%. This corresponds to an Annual Percentage Rate (APR) of 19.99% for both Cash Advances and Standard purchases. This is the interest rate charged on any money you owe.
  • Minimum Interest Charge. This is the smallest amount of interest you might have to pay. Even if you owe a small amount, there’s a minimum interest charge of $2.
  • Late Payment Fee. If you miss a payment due date, you might be charged up to $35. So, it’s a good idea to set reminders to avoid this fee.
  • Returned Payment Fee. Similar to paying for shipping when returning a package, PayPal Credit can charge up to $29 if your payment bounces back.
  • Credit Card Fees. If you use a credit card on PayPal, there could be extra fees, especially for bigger purchases. It’s around 2.9% plus $0.30 for domestic purchases.
  • Transaction Fees.
    • For payments within the US. PayPal might charge 2.9% of the transaction amount, plus a fixed extra fee.
    • For international payments. If you’re sending money abroad, PayPal may add a fee of 4% of the transaction amount. Remember, the exact fees can be different based on where you are and your account’s status.

Lastly, for a fact, these fees can add up, so always consider them before making a cash advance using your PayPal Credit.

When Does Interest Start to Accrue?

This varies depending on what you’re up to. Nonetheless, here are a few situations to consider:

  1. If you are buying something that costs less than $99, interest starts counting from the day you buy it.
  2. When you send money using PayPal Credit, the interest begins from the day of the transaction.
  3. Now, if you spend $99 or more but can’t pay it all within six months, interest will start from the day you bought it. So, make sure you can pay it off on time.

If you handle your PayPal Credit account well and pay off the full credit every billing cycle, you won’t have to pay interest.

You have to take the time to read the terms and conditions PayPal gives you. It’s important to really understand the fees and interest that come with PayPal Credit before you dive in. Trust us on this one

How to Apply for PayPal Credit

If you already use PayPal, just pick PayPal Credit when you are paying. And if you’re new to PayPal Credit, you can apply for it super fast while you’re buying.

But, before you start using PayPal Credit, you need to apply first. Follow the steps below to learn how to apply for PayPal Credit.

  1. Log into Paypal.com using your account information.
  2. Look for the big button that says, “Apply now and pay over time with PayPal Credit” and Click it.
  3. On the next screen, check if your billing address is right. If it’s good, hit Continue. But if it needs fixing, click Update, put in the new address, and then tap Continue.
  4. Give your personal info, like your Social Security number and birthdate. After that, put on your reading glasses and go through the terms and stuff.
  5. Finally, click Agree and Review Terms. Your application will be sent, and you’ll get a decision right away.

Does PayPal Credit Affect Credit Score?

Yes, using PayPal Credit can have an impact on your credit score. When you apply for PayPal Credit, they do a proper check on your credit. This check is called a “hard credit check” and it is reported to credit bureaus.

It’s a big deal because it can show up in your credit history and might affect your credit score. Just remember, PayPal Credit is provided by a bank partner, so they might share your info with credit bureaus.

Frequently Asked Questions

While exploring the opportunities regarding how to get cash advance from PayPal Credit, I identified the following commonly asked questions.

What is the interest rate for a cash advance from Paypal Credit?

PayPal Credit has something called a Daily Periodic Rate of 0.05477%. If you convert that, it’s like an Annual Percentage Rate (APR) of 19.99% for getting cash from PayPal Credit.

Is there a minimum credit score required to get a cash advance from Paypal Credit?

PayPal Credit doesn’t disclose a specific minimum credit score requirement you need for a cash advance. But the truth is having a good history of handling credit can improve your chances of getting approval.

Final Thoughts on How to Get Cash Advance with PayPal Credit

The fact that PayPal Credit allows you to get cash advances using the Send Money feature does not mean it is acceptable, per PayPal policy. And the other method mentioned here is a bonus just in case you don’t want anyone to know what you are up to.

But, remember the fees that tag along when you use PayPal Credit for cash advances. And just like any other credit service, it can get tricky if you’re not careful with your payments. Falling behind means getting charged extra, and those interest charges can pile up quickly.

So, if you do decide to use PayPal Credit to get a cash advance, keep an eye on your payments. Make sure you read the little details to know all the fees and charges.


  • PayPal Credit. PayPal
  • Get No Interest if paid in full in 6 months on purchases of $99 or more when you check out with PayPal Credit. PayPal

Read alsoHow to Get an Overdraft on PayPal [Loophole and Limit]

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Written by
Jim Marous

Jim Marous is a Top 5 Retail Banking Influencer, Global Speaker, Podcast Host and Co-Publisher at The Financial Brand. I am a co-author here at Blueopes Finance, writing on a lot of topics regarding payments, banking software, cards, and investing.

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