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PayPal Credit Basics

What is PayPal Credit?

PayPal Credit is a line of credit from 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 is PayPal Credit different from Bill Me Later?

PayPal Credit is simply the new name for Bill Me Later. You will still enjoy all of the benefits of Bill Me Later, including great savings with special financing offers and the ability to buy now and pay over time.

Do I need to do anything to change my Bill Me Later account to a PayPal Credit account?

Not a thing. Your existing Bill Me Later account will automatically transition to a PayPal Credit account. However, to get even more out of your PayPal Credit account, link it to your PayPal account(or sign up for a PayPal account if you don’t have one) and you can manage both of these in one convenient location at PayPal.com.

How can I get PayPal Credit?

Simply log in to PayPal.com and apply for a PayPal Credit account—it takes just a few seconds. Just enter your birth date and the last 4 digits of your Social Security number and accept the terms. Approval takes only seconds. Don’t have a PayPal account? No problem—you can apply for PayPal Credit here.

How does PayPal Credit work with PayPal?

The next time you check out with PayPal, select PayPal Credit as your payment method. A window will appear on your screen asking for your birth date and the last 4 digits of your Social Security number. Once you accept the terms, approval takes just seconds; PayPal Credit will then be added to your PayPal account automatically. Have an existing PayPal Credit account? It'll be added to your PayPal account as soon as you complete your purchase.

It's a smart idea to link your PayPal and PayPal Credit accounts—you'll be able to speed through checkout, manage your accounts in one place at PayPal.com, and even pay your PayPal Credit bill with your PayPal balance. You can also keep track of all your purchases. Link now.

I just used PayPal Credit. Now what?

Shortly after your first purchase, you'll receive a welcome email. (If you didn't receive this email, please update your spam filters to accept PayPal Credit messages.) Then, about 10 to 14 days after your purchase ships from a retailer or your travel is ticketed, you'll receive an email notification that your billing statement is available online.

If you haven't already linked your PayPal account with your PayPal Credit account, take a moment to link them now to get the most from PayPal Credit. Here's why:

  • You’ll be able to use PayPal Credit at most places PayPal is accepted.
  • You’ll get 6 months to pay for purchases of $99 or more through PayPal Credit.
  • You can also score deals such as free shipping, valuable discounts, and promotional offers.
  • You can manage both accounts at PayPal.com – pay your bill, see recent activity, set payment reminders, and much more. 

If you have linked your accounts, you can log in to PayPal.com at any time to see your purchases and keep track of when your payments are due. Otherwise, you can check your account here.

Do I get promotional financing on all of my PayPal Credit purchases?

Offers will vary depending on where you shop and how much you spend. Thousands of merchants that accept PayPal Credit offer extended payment options. To view a list of current offers, click here.

With these additional offers, you can still take longer than the usual monthly billing cycle to pay for purchases that aren’t eligible for special financing. If you choose to do so, interest will apply.

To help you understand how much time you have to pay, you can view your statement to see promotional financing purchases and payment information. Just log in to your account and click Statements. You can also view this information on your monthly billing statement. For more information about promotional financing offers or your specific promotional purchases, Contact Us

Bottom line: You're in control with promotional financing from PayPal Credit. Even when your purchases qualify for promotional financing, you can choose to pay your balance in full by the promotion expiration date to avoid interest, or you can take more time (with interest)..

Is there an annual fee to use PayPal Credit?

There is no annual fee for using PayPal Credit.

What is my Annual Percentage Rate (APR)?

The Annual Percentage Rate 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.

If I pay late, will I be charged a fee?

Yes, we'll charge a late fee for each month that the minimum payment isn't 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.

What is my credit line and how can I increase it?

Once you've been approved for an account, Comenity Capital Bank will open a PayPal Credit account with a credit line equal to the amount of your purchase or $250, whichever is greater.

You can continue to use PayPal Credit for purchases. If those purchases cause your outstanding balance to exceed your credit line, we'll evaluate you for a credit line increase. We determine your eligibility for a credit increase by your credit history and customer history with PayPal Credit, along with our Terms and Conditions.

This will happen automatically during checkout, so you don't even need to ask. Best of all, it doesn't slow down your checkout! You won't need to do a thing except enjoy the extra time to pay for your purchases.

What does “subject to credit approval” mean?

PayPal Credit is a credit account that you can use to make purchases. Comenity Capital Bank will review and consider your credit report and other credit-related information before 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're 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'll look at your credit history and history with PayPal Credit to determine instantly whether to increase your credit line.

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

No. We review your credit report when you apply for PayPal Credit and occasionally when you attempt to increase your credit line. We'll receive periodic updates of your report, but these updates have no impact on your credit score. If we decrease your credit line for any reason, we'll notify you in writing and tell you why.

Promotional Financing + Offers

What types of promotional financing does PayPal Credit offer?

  • “No Payments + No Interest if Paid in Full by:” With this option, you don't have to make monthly payments. Interest will accumulate during the promotional period, starting from the date of purchase. If you pay your balance in full by the promotion expiration date, you won't be charged interest. If you don't pay your balance in full by the promotion expiration date, the accumulated (or "deferred") interest will be added to your account balance. Minimum purchase may apply.
  • “No Interest if Paid in Full by:” This option requires you to make minimum monthly payments, as described in your billing statement. Interest will accumulate during the promotional period, starting from the date of purchase. If you pay your balance in full by the promotion expiration date, you won't be charged interest. If you don't pay your balance in full by the promotion expiration date, the accumulated (or "deferred") interest will be added to your account balance. Minimum purchase may apply.
  • Easy Payments: This option allows you to pay for your purchase by making a predetermined number of equal monthly payments. Depending on the offer, the terms may be for 6, 9, 12, 18, or 24 months. Interest won't accumulate during the promotional period. If you don't pay the balance in full by the promotion expiration date, interest will begin to accrue on the remaining portion of the balance.

How do I avoid paying any interest on purchases I make using PayPal Credit's "No Payments + No Interest" or "No Interest if Paid in Full By" promotional financing options?

To avoid interest charges, pay your promotional balances in full before the expiration date. The easiest way to track this information is to review the "Active Promotions" section of your online statement, or check the current balance in the "Deferred Interest Summary" section of your paper statement.

Using PayPal Credit with PayPal

How does PayPal Credit work with PayPal?

The next time you check out with PayPal, select PayPal Credit as your payment method. A window will appear on your screen asking for your birth date and the last 4 digits of your Social Security number. Once you accept the terms, approval takes just seconds; PayPal Credit will then be added to your PayPal account automatically. Have an existing PayPal Credit account? It'll be added to your PayPal account as soon as you complete your purchase.

It's a smart idea to link your PayPal and PayPal Credit accounts—you'll be able to speed through checkout, manage your accounts in one place at PayPal.com, and even pay your PayPal Credit bill with your PayPal balance. You can also keep track of all your purchases. Link now.

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 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.

I’ve linked my PayPal Credit and PayPal accounts. Do I still need to register?

Nope. Once you link your accounts there is no registration step. You can simply log into PayPal.com and get access to up-to-the-minute account activity, special discounts, free shipping, and promotional financing offers from your favorite merchants.

What if I do not currently have a PayPal account?

In order to link your PayPal Credit and PayPal accounts, you must first open a PayPal account. If you do not already have a PayPal Credit account, you can sign up for both accounts at the same time.

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.

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. You will need to open a new PayPal account and link that to your PayPal Credit 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.

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.