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How To Use PayPal Credit: The Ultimate 10-Step Guide

Are you looking for an easy way to spread out payments over time for your online purchases? If so, PayPal Credit may be a great option for you.

PayPal Credit allows you to make purchases online and then pay for them over 6 months with no interest. It‘s completely digital, so there‘s no physical credit card involved.

In this comprehensive guide, I‘ll walk you through everything you need to know to apply for and start using PayPal Credit to finance your online shopping. Let‘s get started!

An Overview of PayPal Credit

Before we dive into the step-by-step instructions, let me provide some helpful background on what exactly PayPal Credit is and how it works:

  • What it is: PayPal Credit is a digital line of credit provided by PayPal directly to customers. It allows you to pay for purchases over time.
  • Credit limit: Approved limits range from $250 – $5,000. Your limit determines how much you can spend.
  • Length of financing: You have 6 months to pay off purchases of $99 or more with no interest or fees.
  • Instant approval: Applying only requires a soft credit check and you get an instant decision.
  • Buyer protection: PayPal‘s purchase protection applies to items bought with PayPal Credit.
  • How it‘s used: Primarily for online shopping. Can also be used in-store with the PayPal app.
  • Fees: No annual fee. Late fees apply if you miss minimum payments.

The key benefit is the 6 months of special financing. As long as you pay the full amount within 6 months, there‘s absolutely no interest or fees!

Now let‘s get into the step-by-step process for applying and using PayPal Credit.

Step 1: Create Your PayPal Account

In order to apply for PayPal Credit, you first need to have a PayPal account. Fortunately, setting up a new PayPal account only takes a few minutes.

Here‘s how to quickly get up and running:

  1. Go to and click Sign Up in the top right corner.
  2. Enter your email and create a password. Click Next.
  3. Provide your name, address, date of birth and last 4 digits of your SSN. Click Next.
  4. Choose whether you want a Personal or Business account.
  5. Review PayPal‘s user agreement and privacy policy. Click Agree and Create Account.

That‘s all it takes! Once your new account is created, you‘ll need to connect a funding source like a bank account, debit card, or credit card. This allows you to pay for purchases and transfer money from your PayPal account.

To add a funding source:

  1. Click on your profile icon in the top right.
  2. Select Add a bank account or card.
  3. Choose your bank or enter debit/credit card details.
  4. Follow the prompts to securely connect it.

And that‘s it – you now have a functional PayPal account ready to roll!

Step 2: Apply for PayPal Credit

Now that your PayPal account is set up, it‘s time to apply for PayPal Credit.

Here‘s how to submit an application in just a few clicks:

  1. Log into your PayPal account.
  2. Click on Credit at the top of the page.
  3. Select Apply Now under the PayPal Credit section.

Apply for PayPal Credit

  1. Review the terms, then click Apply Now to submit the application.

PayPal will perform a soft credit check that won‘t impact your score. You‘ll get an instant decision on whether you‘re approved. The credit limit assigned can be anywhere from $250 up to $5,000 based on your creditworthiness.

Step 3: Check Your Credit Limit

Once approved, you‘re ready to start using your new PayPal Credit account! But first, you‘ll want to check your credit limit so you know how much you have available to spend.

Here‘s how to find your PayPal Credit limit:

  1. Click on Credit at the top of the PayPal website.
  2. Your credit limit and available funds will be shown at the top:

PayPal Credit Limit

  1. You can also click Details to see your current balance alongside your total limit.

This credit limit works just like any other line of credit – as you pay down your balance, more funds become available to spend again.

Step 4: Set PayPal Credit as Preferred Payment

Now it‘s time to set PayPal Credit as the preferred payment method for your account. This ensures it will automatically be used when you check out with PayPal.

Here‘s how to select PayPal Credit as your go-to payment option:

  1. Click on Settings in your PayPal account.
  2. Choose Payments from the menu on the left.
  3. Under "Preferred Payment Method", click Change.
  4. Select PayPal Credit and click Save.

Preferred Payment Method

And you‘re all set! PayPal Credit is now ready to use for online shopping.

Step 5: Shop Online and Check Out with PayPal

Now comes the fun part – it‘s time to start using your PayPal Credit for actual purchases!

When you go to pay for something online, simply select PayPal at checkout and the amount will automatically be charged to your line of credit. It‘s just that easy!

For example, if you were purchasing a $200 computer monitor:

  1. Add the monitor to your shopping cart.
  2. Proceed to checkout and select PayPal as the payment method.
  3. Log into PayPal if required.
  4. Confirm your shipping address and payment details.
  5. Complete checkout and your purchase is funded by PayPal Credit!

Here are some examples of popular online retailers that accept PayPal:

  • eBay
  • Etsy
  • Target
  • Home Depot
  • Best Buy
  • Walmart
  • Wayfair
  • Nike
  • Adidas
  • Dell

Chances are the online stores where you like to shop already integrate with PayPal checkout. Give it a try next time you make a purchase!

Step 6: Pay Your Monthly Balance

As you use your line of credit for purchases, you‘ll have a PayPal Credit account balance that needs to be paid down each month. Here are some tips for staying on top of payments:

  • Pay at least the Minimum Amount Due every month – This is required to keep your account in good standing. Pay it on time to avoid late fees.
  • Set up AutoPay – For automated payments from a bank account to avoid missed payments.
  • Always pay the full balance – If possible, pay your balance off completely each month to avoid interest charges.
  • Pay more than the minimum – When you can, make payments above the minimum amount to pay off your balance faster. Every extra dollar goes towards the principal.

You‘ll have a payment due each month, but remember: As long as you pay the full balance within 6 months, there are no interest charges on purchases $99+! This makes PayPal Credit an affordable option for financing larger purchases over time.

Step 7: Monitor Statements and Payment History

It‘s good practice to regularly check your PayPal Credit account statements and payment history. This helps you monitor your spending and ensure on-time payments.

To view account statements:

  1. Click on Credit in your PayPal account.
  2. Select Statements.
  3. Choose a statement period to view transactions and balance details.

You can also download statements from this page as PDFs or CSV files for your records.

PayPal Credit Statements

Use the payment history page to confirm when payments have been received and processed. This ensures there are no issues with your account.

Staying on top of your account activity ensures everything remains in good order!

Step 8: Avoid Interest and Fees

PayPal Credit makes it easy to avoid interest charges – simply pay off your full balance within 6 months and no interest is charged! Even for large purchases.

Here are some tips to avoid interest and fees with your account:

  • Pay within 6 months – Pay off the full balance within 6 months and no interest is charged on purchases $99+.
  • Pay at least the minimum – Paying the minimum amount due each month ensures no late fees.
  • Set up autopay – Automating payments helps avoid missed payments and interest charges.
  • Use account alerts – Set up email/text alerts for payment reminders and important account notices.
  • Avoid going over limit – Stay under your credit limit to prevent over the limit fees.

As long as you pay responsibly by making timely payments, you‘ll avoid all fees and interest charges – letting you maximize the 6 months special financing!

Step 9: Use In-Store at Participating Retailers

While PayPal Credit is primarily designed for online shopping, you can also use it in-store at thousands of participating retail locations.

To use in-store, you‘ll need the PayPal mobile app to generate a unique checkout code or use your mobile PIN:

  • One-Time Code – In the PayPal app, find the store and generate a 4-digit code to provide at checkout.
  • Mobile PIN – Set up a mobile PIN in your account settings to use when paying in stores.

Either option allows the cashier to charge your purchase to your PayPal Credit account using your mobile device. No physical card required!

Popular in-store retailers that accept PayPal Credit include:

  • Home Depot
  • Best Buy
  • CVS
  • Advance Auto Parts
  • Dick‘s Sporting Goods
  • GameStop
  • Barnes & Noble

Give it a try next time you‘re out shopping in-store!

Step 10: Get Customer Service Support

Hopefully you don‘t run into any issues with your new PayPal Credit account, but if you ever need assistance their customer service team is available to help:

  • By phone – Call 1-844-373-4961. Representatives are available 24/7.
  • Email – Submit a customer service request form online.
  • Live chat – Initiate a real-time chat from your PayPal Credit account.
  • Twitter – Tweet @AskPayPal to get a public response.

Be sure to have your account information on hand when reaching out. The support team can help with any issues related to your account, payments, statement disputes, and more. Don‘t hesitate to contact them!

And that covers everything you need to know to get up and running with PayPal Credit!

In 10 quick steps, you can:

  • Set up a PayPal account
  • Get approved for a line of credit
  • Activate PayPal Credit as your payment method
  • Use it to finance purchases online and in stores
  • Manage monthly payments
  • Monitor your account activity
  • Avoid interest and fees
  • Get customer support if needed

With the 6 months special financing and instant approval, it‘s easier than ever to spread out payments over time on your bigger purchases. Give PayPal Credit a try today!