PayPal Credit Review: Is It Legit?

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paypal credit review

PayPal Credit, formerly known as Bill Me Later is a credit line that you can access through PayPal. PayPal is no stranger to online banking. This Behemoth company boasts having week over 305 million active users, so it knows a thing or two about handling money. So it it legit? Here’s an in-depth review on PayPal Credit.

What is PayPal credit?

PayPal Credit is a payment option /credit line that is provided by PayPal. It is a revolving Digital Credit that boosts $0 in Annual fees and exceptional financing options.

Unlike many other providers off revolving credit, purchases over $99 qualify for special financing that puts PayPal credit a cut above the rest.

Quick facts on PayPal Credit

Before going deeper in the review, here are a few quick facts about PayPal Credit:

  • PayPal credit offers $0 in annual fees, and no foreign transaction fees
  • You earn 2% cash back on all purchases every time you use the card
  • Earnings can be redeemed into the PayPal balance at any time
  • $99 special financing offers 0% APR if paid off within 6 months

Can I use it anywhere?

Yes, for the most part. When you sign up for a PayPal credit account, you also get a physical card associated with that account. Any store that accepts MasterCard will accept PayPal credit.

Not only do you have a physical card to make purchases in person, but you can also use the PayPal account to make online transactions securely and quickly. A large majority of Merchants support PayPal payments, making your online purchases an experience that much easier and faster.

What is my credit limit?

Can you initial credit limit varies wildly, depending on your credit score and other factors. PayPal does not disclose how to determine your initial credit line, but I was initially offered $1,200 a few years ago.

When it if you wanted to make a purchase over your credit limit, this automatically counts as a credit limit increase request. As long as you are in good standing, and have made all your prior payments on time, they should be able to increase your limit easily. Once the transaction goes through, that limit will remain permanently on your account.

You can also manually request a credit increase from PayPal credit. Again, as long as your account has been in good standing, then this should not be an issue.

Does PayPal Credit report to the Credit Bureaus?

Yes, they do. When PayPal credit was initially unveiled, they did not report to the credit bureaus. Now on the other hand, they report your credit balance to the credit bureau.

So just like any other credit card, make sure to keep your credit utilization low so as to maximize your credit score. If you consistently max out your PayPal credit, this might negatively affect your credit score.

Does PayPal Credit protect from unauthorized transactions?

Yes. Similar to how other credit card companies work, PayPal credit offers complete protection from unauthorized transactions.

If you encounter any issues, you can reach out to their help line for them to investigate the unauthorized charge. If found that the transaction was indeed an authorized, you can rest assured that they will give you your money back and replace the credit card with a new number.

They offer Zero fraud liability protection, which is equivalent to other major credit card providers. So, if your PayPal account is ever compromised, rest assured PayPal will reimburse you completely.

Is PayPal Credit secure?

Not only does PayPal credit offer Zero fraud liability protection, but they also ensures that your information is safe and secure. PayPal is one of the Worlds most well-known online Financial institutions that has a pretty solid track record.

As mentioned earlier in this article, yeah well over 300 million active users that have entrusted to them with their financial information.

They offer substantial encryption with every transaction, 24-hour account monitoring, and an investigation team always looking out for suspicious activity and unauthorized transactions. Your data is completely safe with PayPal.

Warning: Never miss a payment

With their special financing deal, it is very important that you never miss a Paypal payment. If you miss a payment Within your special financing period, you will be hit by a very hefty financing charge!

As their website states:

No Interest if paid in full in 6 months on purchases of $99+.
Interest will be charged to your account from the purchase date if the balance is not paid in full within 6 months. Minimum monthly payments required.

The thing is, life happens and you might miss a payment or not to pay off the balance in full within 6 months. If that’s the case, then interest would be calculated from the date you made the purchase to when you either missed your payment, or did not pay the full amount after 6 months.

I have read and seen so many negative reviews about the PayPal credit because of this misstep. Credit, like any other Financial assets, can be very valuable if used carefully and wisely. So always remember to pay off Kia special financing purchases and never miss your minimum monthly payment.

Final thoughts

So, it’s PayPal credit right for you? Only you can answer that. However, since you’re on here and looking for an opinion and a review, here is my recommendation on PayPal credit.

PayPal provides me an absolutely streamlined experience when it comes to online shopping. I don’t have to remember credit cards or share my credit card information with a bunch of websites, so PayPal is a no-brainer.

However, when it comes to PayPal credit, the special financing and the 2% cashback on everything is it pretty good deal, considering they are no annual fees. As long as you pay off your special financing purchases and never miss a payment, it is a pretty good deal!

I use it, I have it, and I’ve never regretted having it. And awesome addition to my financial Arsenal 🙂 Definitely check it out.

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