How Do I Pay with PayPal Credit? A Comprehensive Guide
The core question, “How do I pay with PayPal Credit?” can be answered simply: When making an online purchase, if the retailer accepts PayPal, you can often choose PayPal Credit as your payment method during checkout. This is usually done in one of two ways: either selecting PayPal as your payment option and then choosing PayPal Credit from within the PayPal interface, or applying for PayPal Credit directly during the checkout process if you don’t already have it.
PayPal Credit is a revolving credit line provided by PayPal, allowing you to make purchases on credit. Think of it like a virtual credit card that’s tied to your PayPal account. Let’s delve deeper into how it works and explore some key aspects of using it effectively.
How to Use PayPal Credit at Checkout
The most common way to utilize PayPal Credit is during online shopping. Here’s a step-by-step process:
- Shop Online: Browse your favorite online retailers and add items to your cart.
- Proceed to Checkout: Begin the checkout process as you normally would.
- Select PayPal as Payment: At the payment method selection, choose PayPal as your payment option.
- Log into Your PayPal Account: You will be redirected to a PayPal login screen. Enter your email address and password to access your PayPal account.
- Choose PayPal Credit: Once logged in, you’ll see available payment options. Select PayPal Credit as your preferred payment method.
- Complete the Purchase: Confirm your purchase, and the transaction will be processed using your PayPal Credit line.
Applying for PayPal Credit On-the-Spot
If you don’t have PayPal Credit yet, it’s often possible to apply during the checkout process. During step 5 above, you may be prompted to apply for PayPal Credit if it’s available. The application process is usually quick, and if approved, you can complete your purchase using your newly opened line of credit immediately.
Understanding Eligibility and Availability
It’s important to note that PayPal Credit is not always available for every purchase, even at retailers that accept PayPal. Several factors can influence this, such as the merchant’s policies, the amount of your purchase, and even your own PayPal account history and creditworthiness. You might see the option to use PayPal Credit, or you might not. If it’s not available, you’ll need to choose an alternative payment method.
Utilizing PayPal Credit Beyond Standard Online Payments
PayPal Credit isn’t limited to just typical online purchases. There are various other ways you can use it, each with its own specific procedures:
Sending Money to Friends and Family with a Cash Advance
While primarily designed for online purchases, PayPal Credit can also be used to send money to friends or family through the “Send Money” feature. This is considered a cash advance, meaning it’s not a purchase, but rather an extension of credit on your account. Note that you cannot send money to yourself using this feature. This service is subject to fees and may accrue interest immediately since it’s not a standard purchase transaction.
Transferring Funds to Your Bank Account
You can transfer your PayPal balance, which could include funds from a refund or any other source, to a bank account. This action does not directly involve PayPal Credit, but it’s an important function for managing your finances within the PayPal ecosystem. You cannot directly transfer funds from your PayPal credit line to your bank account.
To transfer money in the PayPal app:
- Tap your PayPal balance.
- Tap Transfer.
- Tap Transfer to bank.
- Choose the transfer speed – in minutes (fee applies) or 1-3 days (no fee).
- Tap Transfer Now.
Using a Virtual Card
PayPal Credit also provides a virtual card number for single online use. This enhances security by creating a temporary card number for a specific transaction. This virtual card information includes the card number, CVV, and expiration date. The virtual card is only valid for 24 hours, and PayPal cannot duplicate it. To find the virtual card number:
- Go to your PayPal Wallet.
- Tap the Pay Later tile.
- Click on your Pay in 4 plan to access the card information.
You can also use your PayPal Credit virtual card for in-person purchases by adding it to your mobile wallet (like Apple Pay or Google Pay).
Understanding Pay in 4
Another option available with PayPal Credit is the Pay in 4 feature, which allows you to split your purchase into four interest-free payments. If you are offered this option during checkout, it will be presented along with standard PayPal Credit.
Frequently Asked Questions (FAQs) About Paying with PayPal Credit
Here are some common questions people have about using PayPal Credit:
1. Why can’t I use PayPal Credit for my purchase?
PayPal Credit may not be offered for all purchases. Sometimes, even if a seller accepts PayPal Credit, you might be restricted from using it due to purchase-specific circumstances or internal risk assessments. If this happens, use another payment method.
2. How can I use PayPal Credit without a physical card?
You don’t need a physical card to use PayPal Credit. You use it during online checkouts by logging into your PayPal account and choosing PayPal Credit as your payment option. You can also use the virtual card to pay online or in person using your mobile wallet.
3. Can I transfer PayPal Credit directly to my bank account?
No. You cannot directly transfer the credit line balance from PayPal Credit to your bank account. You can, however, transfer any existing PayPal balance (which may be from a refund, etc.) to your bank account.
4. Can you transfer PayPal Credit to a debit card?
Yes, you can transfer your PayPal balance (not the credit line) to an eligible debit card once your email is verified. PayPal will transfer the funds to the bank account associated with your debit card.
5. Can I use PayPal Credit to send money to myself?
No. PayPal Credit’s “Send Money” function, which is effectively a cash advance, can only be used to send money to other PayPal users, not to yourself.
6. What bills can I pay with PayPal Credit?
You can often use PayPal to pay a variety of bills, including power, water, cell phone, and subscription services, wherever PayPal is an accepted method of payment.
7. Can you get a cash advance from PayPal Credit?
Yes. By using the “Send Money” feature, you are essentially taking a cash advance from your PayPal Credit line. This incurs immediate interest.
8. Does Walmart accept PayPal Credit?
Yes, you can select PayPal Credit at checkout on Walmart.com. It sometimes includes a cash back offer.
9. Why can’t I send money on PayPal with PayPal Credit?
PayPal Credit can only be used for online purchases where PayPal is a payment option. It is not designed for sending money to friends unless you’re using the cash advance functionality of sending money to another person.
10. What are the credit score requirements for PayPal Credit?
Applicants with a credit score of at least 600, up to 850, may be eligible for PayPal Credit.
11. Can you put PayPal Credit on Apple Pay?
Yes, you can add your PayPal or Venmo credit or debit card to Apple Wallet and use it for purchases.
12. Can I use PayPal Credit on Amazon?
No. Amazon does not accept PayPal as a payment option, so you cannot use PayPal Credit there.
13. Can you use PayPal Credit anywhere online?
Yes, you can use PayPal Credit anywhere that accepts PayPal online, though it is subject to eligibility.
14. Can I buy a prepaid Visa with PayPal Credit?
Yes, you can typically purchase Visa gift cards using PayPal Credit at retailers that accept PayPal.
15. Does applying for PayPal Credit do a hard pull on my credit?
Yes, when you apply for PayPal Credit, a hard inquiry will be made on your credit report, potentially affecting your credit profile.
Conclusion
Understanding how to pay with PayPal Credit is essential for leveraging this payment option effectively. By following the instructions provided and being aware of the limitations and specific scenarios, you can use your PayPal Credit wisely for both online purchases and limited financial transactions, while responsibly managing your credit. This flexibility, especially with options like virtual cards and Pay in 4, makes PayPal Credit a versatile tool in the digital finance landscape. Remember to always manage your credit line responsibly to avoid unnecessary interest charges and maintain a healthy financial standing.