How to Use Paypal Credit Money for Anything

By Robert Courtneidge 17 Min Read

Online shopping is really convenient, but it’s frustrating when you can’t afford the things you want. Luckily for you, you can use PayPal Credit to shop for your favorite items and pay later. PayPal Credit is a line of credit that gives users the flexibility to pay for purchases right away or over time. With this credit, you don’t have to worry about not having enough money for your online purchases. It’s a special way to pay that allows you to buy things without hurting your finances.

It’s not a physical credit card, instead, it’s a virtual line of credit provided by PayPal. And this article is going to explain how you can use PayPal Credit on your favorite online stores and any other thing you need to know about it.

How to use PayPal Credit

how to use paypal credit

Using PayPal Credit is easy and convenient, whether you’re making a purchase or applying for it. If you’re already using PayPal, you can simply choose PayPal Credit as your payment option during checkout. And in case you don’t have a PayPal Credit account, you also have the option of applying for it in just a few seconds while you’re making your purchase. That said, below are the ways to use PayPal Credit:

1. Apply for PayPal Credit during a purchase

  1. When you’re ready to make a purchase from a retailer that accepts PayPal, choose PayPal Checkout as your payment option.
  2. If you don’t have a PayPal account, you’ll be prompted to create one. If you already have an account, just log in.
  3. Once you’ve created an account or logged in, you’ll see the option to use PayPal Credit. Select that option and follow the instructions. You’ll be asked to provide your Social Security number and date of birth. The approval process is quick, and you’ll receive a decision in seconds.¹

2. Apply for PayPal Credit using your account

If you prefer to apply for PayPal Credit outside of purchase or at any time, you can do so using your PayPal account:

  1. Log into using your account credentials.
  2. Look for the option that says “Apply now and pay over time with PayPal Credit” and select it.
  3. On the next screen, verify or update your billing address. If the address is correct, click “Continue.” If it needs to be updated, click “Update” and enter the new billing address. Then, click “Continue.”
  4. Enter your personal information, including your Social Security number and date of birth.
  5. Once you’ve provided this information, review the terms and agreements, and click “Agree and Review Terms.”²

Your application will be submitted, and you should receive an instant decision.

Where can I use PayPal Credit?


This is one question that a lot of readers have on their minds. Not to worry though, here’s an overview of where you can use it and how you can make use of it:

a. PayPal Credit in store?

When it comes to using PayPal Credit, understand its primary purpose and where it can be used. PayPal Credit is primarily designed for online use and may not be widely accepted at physical brick-and-mortar stores.

This basically means that you can use your PayPal Credit line for purchases made on most online stores, but you really can’t use it for transactions at the local store down the street from you.

b. Use PayPal Credit to make an online 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.

How to send money with PayPal Credit


It’s a pretty straightforward process to use PayPal Credit to send money. All you have to do is log into your PayPal account and choose PayPal Credit as your payment option when setting up the payment. Even better, the charges are similar to using a credit or debit card (if you’re sending money in US dollars).

But remember, when you use PayPal Credit to send money, it’s like getting a cash advance, so you start accruing interest right away. If you’re sending money internationally, there may be extra fees for converting currencies. We’ll explain all the fees in more detail later on.

1. Make a PayPal Credit payment by mail

PayPal even offers you a way to make payments via mail.³ All you have to do is to:

  • Send your payment to the following address:
  • PayPal Credit
  • P.O. Box 71202
  • Charlotte, NC 28272-1202
  • Make sure you write your check payable to “PayPal Credit” and include your payment coupon or write your account number on the check.

An alternative is to make your payment over the phone. Just reach out to PayPal’s customer service at 1-866-528-3733 and they’ll fill you in on the details.

2. Send money to yourself with PayPal Credit

While PayPal Credit is not primarily designed for sending money to yourself, there is a clever workaround that makes it possible. According to PayPal’s user agreement, transfers between personal accounts are allowed. This makes PayPal Credit a viable option for sending money to yourself.

One advantage of using PayPal Credit for these types of transfers is that there are no fees for personal payments, making it a cost-effective solution.

Now, let’s get straight to the steps on how to send money to yourself using PayPal Credit:

  1. Log in to the PayPal account you want to use for sending money.
  2. Look for the “Send & Request” tab at the top of the page and click on it.
  3. Choose the option that says “Send to Friends and Family.”
  4. Enter the email address or mobile number associated with your other PayPal account.
  5. Specify the amount you want to send and select the currency.
  6. Double-check the details and click the “Send” button.

Is PayPal Credit free?

When it comes to PayPal Credit, it’s not all rainbows and unicorns. Using PayPal Credit isn’t free. Depending on how you use it, you might have to pay fees and interest. So, before you jump in, grab a cup of coffee and cozy up with those terms and conditions online. Trust us, it’s worth the read (well, sort of).

Nonetheless, here are some important things to keep in mind:

What are the fees?

The PayPal Credit money stuff; you know, the fees and interest rates that come with it. Here’s the lowdown on what you need to know:

  • Interest (APR): This fancy term stands for Annual Percentage Rate. For PayPal Credit, it’s 23.99%. It’s the interest rate you’ll be charged on any money you owe.
  • Minimum Interest Charge: If you end up owing interest, there’s a minimum charge of $2. So even if you owe just a little, you’ll still have to pay that small amount.
  • Late Payment Fee: If you don’t make your minimum payment on time, you could get slapped with a late payment fee. Worse still, it can go up to $40 – sure you didn’t see that coming.
  • Returned Payment Fee: You know those times when your payment bounces back like a boomerang because you didn’t have enough dough in your account? Well, PayPal Credit might hit you with a fee of up to $29 for that.
  • Sending Money Domestically: When you use PayPal Credit to send money within the United States, you might have to pay a PayPal fee of 2.9% of the transaction amount, plus an extra fixed fee. They like to take a little something for themselves.
  • Sending Money Internationally: If you’re feeling fancy and want to send money abroad using PayPal Credit, get ready for a PayPal fee of 4% of the transaction amount.

The actual fees may vary based on your location and account status.

When does interest start to accrue?

When interest starts to add up can vary with PayPal Credit. If you’re splurging on a purchase worth $99 or more, you won’t be charged interest for six months, which is a good deal. But hold on tight, there are other situations to consider:

  1. If you’re buying something cheaper than $99, interest starts adding up from the day you make the purchase.
  2. Oh, and when you send money to someone using PayPal Credit, interest starts adding up from the day of the transaction.
  3. Now, if you spend $99 or more but can’t pay it off completely within six months, interest will be added from the day you made the purchase.

However, if you manage your PayPal Credit account responsibly and pay off your entire credit balance every billing cycle, you can avoid paying interest and reduce your overall costs.

But seriously, don’t forget to carefully read the terms and conditions provided by PayPal so that you have a complete understanding of the fees and interest associated with PayPal Credit before you start this credit adventure.

Pros and cons of PayPal Credit

Before you decide to sign up for PayPal Credit, you need to think about the good and not-so-good things it offers. Remember that there may be costs involved, and it’s worth looking at other options that might be a better fit for you.

Let’s see the pros and cons of PayPal Credit to see if it’s still as cool as we thought it was.


  • Quick credit decision: You’ll find out if you get approved for credit soon after you apply.
  • Easy online shopping: PayPal Credit is super easy to use when you’re shopping online.
  • Send money to friends and family: You can use PayPal Credit to send money to friends and family, and even send money to yourself (if you know the workaround).
  • 6-month interest-free period for purchases over $99: You won’t have to pay interest for six months if you make a purchase over $99.


  • Can’t use it in physical stores: You can only use PayPal Credit for online purchases because it doesn’t give you a physical card.
  • No interest-free period for purchases under $99 or sending money to friends and family: You’ll start paying interest right away for purchases under $99 and when you send money to friends and family.
  • Extra costs for sending money to friends and family: Sending money using PayPal Credit might come with transfer fees for converting currency, especially if it’s an international payment.

Does PayPal Credit affect credit score?

Yes, when they do a hard credit check, it gets reported to credit bureaus, and that can affect your credit score. Since PayPal Credit is provided through a banking partner, they might share your information with credit bureaus. So, using PayPal Credit can have an impact on your credit history and credit score.

Remember the difference between PayPal and PayPal Credit. PayPal is a payment option that takes money from either your bank account or a credit card. You can also keep money in your PayPal account to use for purchases.

On the other hand, PayPal Credit is like having a credit card with a flexible payment schedule. It gives you more time to pay off your purchases, but if you have an outstanding balance, they’ll charge you an interest rate called APR.


What alternatives to PayPal Credit?

If you’re looking for a “buy now, pay later” service, it’s a good idea to check out other companies like Afterpay, Sezzle, Klarna, and Quadpay. They might have different features and terms that suit you better.

How can I use PayPal Credit without a card?

PayPal doesn’t require a credit card. If you prefer not to use a credit card, you can still take advantage of all of PayPal’s features just by linking to a bank account.

Why won’t PayPal let me use PayPal Credit?

Sometimes, even if the seller accepts PayPal Credit, there might be situations where you can’t use your credit line for a purchase. If that happens, try using a different payment method that you have available.


PayPal Credit can be handy if you’re making big purchases of $99 or more and are confident you can pay them off within six months. It can also be useful if you can pay your full bill every billing cycle to avoid paying a lot of interest.

Lastly, don’t forget about the fees. Just like any other credit service, it could get nasty if you don’t keep an eye on your payments. Falling behind could lead to penalties, and those interest monsters can pile up pretty quickly.

Read also: get cash from credit card with PayPal


  1. What is PayPal Credit and where can I use it? PayPal
  2. Get No Interest if paid in full in 6 months on purchases of $99 or more when you check out with PayPal Credit. PayPal
  3. How do I make payments on my PayPal Credit account? PayPal
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Independant Industry Expert in Payments and the Digital Future of Money, Co-Editor of The PAYTECH Book, top Payments Lawyer and voted No. 1 in Payments Power 10 at #PayExpo What do I do? I solve the problem of moving payments firms into the new era of money. Traditional financial services businesses risk getting left behind as Generation Z leapfrogs the banks, opting instead for big techs, challengers, and social commerce propositions. Ignoring blockchain technology and the widening knowledge gap between the financial services and digital sectors puts businesses at risk of falling behind their competitors, compromising their competitive edge, and ultimately becoming redundant.
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