PayPal is an online platform that aid payments between individuals, businesses, companies, etc. at a low cost. It is a platform where users create accounts that is associated and linked to their accounts or credit cards. PayPal is seen as a safe way of sending money to both individual consumers and businesses online because when withdrawing both the money and the privacy i.e. account details are secured and well protected.
PayPal Credit is a line of credit from PayPal disseminated Synchrony Bank. This helps PayPal users to for online acquisitions in installments, rather paying at once. It is to be noted that PayPal Credit and PayPal credit or debit card are not the same thing, they are entirely different.
How to Apply for PayPal Credit
PayPal credit can be applied for by any PayPal user where you will be asked to provide your date of birth, income after paying taxes and last four digits of your Social Security number. Once your account has been approved, PayPal will give you a limit of $250 credit. It was first known as Bill Me Later which has been in existence around 10 years now. Creating a PayPal Credit account does not make you immune to reviewing of accounts by PayPal.
Terms and Conditions when Applying
- The minimum charge for interest when purchasing something online is $2
- PayPal Credit demand monthly payments on your balance. It also allows a user to pay the required payment at the end of the month or pay in full at anytime, as a user desires.
- PayPal charges late payment fees at the rate of $40 but will be reduced to $29 if a user has made payments due date in prior purchases.
- If a user sends money through PayPal Credit, he/she will be charged as when sending money through PayPal using debit or credit cards. At the rate of 2.9% + $.30 per transaction.
- PayPal Credit does not charge interest when a user has no balance at the start of a billing cycle.
Merits and Demerits of PayPal Credit
- It is fast and convenient for users to make purchases as soon as they have been approved.
- It is very easy and comfortable to use for online shopping.
- PayPal Credit has a charges fee free for 6 months when a user shops from the amount ranging from $99 or more.
- It has a low credit limit ranging from $250 to a few thousand dollars.
- There is a hard credit enquiry during application which will dent your credit score.
- Users can be tempted to overspend on PayPal Credit because of the credits given.
- It can be used anywhere that PayPal is acknowledged.
- It can not be used in stores as there is no physical card, so it is virtually for online shopping.
Review of PayPal Credit
There have been many reviews from users of PayPal Credit some praising while some have nothing good to say about it. Most complains range from cancellations to decrease of credit limits when there is a missed payments and blacklisting with other credit companies which definitely is not good for business owners. Few users have been able to acknowledge that it is good for new startup businesses and possibly solves the problem of funds and paying at the spot.
Asides from solving fund problems, PayPal Credit also gives options to their users on when to pay e.g. there is a 6 months interest free option a user can choose from. There is also a straightforward and easy application with a fast response system. Another good thing about it is that a lot of websites use PayPal as their payment option and this makes it easier to purchase.