How To Use Paypal Credit: In 10 Steps, With Photos

PayPal online payment

How To Use Paypal Credit: In 10 Steps, With Photos

PayPal has become synonymous with e-commerce and online banking, offering one of the safest ways to make online transactions. While we often think of Visa, MasterCard, and American Express as the go-to credit card brands, PayPal is also a player in the credit business. However, unlike traditional credit cards, PayPal credit can only be used online and does not come with a physical card. Sadly, some users do not know how to use the PayPal credit option.

As a fully online-based service, PayPal credit differs from other credit cards bearing the PayPal name, such as the PayPal Cashback Mastercard. Nevertheless, there are several benefits to using PayPal credit, especially if you frequently shop online and already have a PayPal account. In this guide, we’ll explore everything you need to know about using PayPal credit and how it can help enhance your online shopping experience.

Step 1: Create a PayPal Account

To access the PayPal credit function, you must create a PayPal account. The good thing is that you can create a PayPal account for free. Once your account is ready, link it with a debit or credit card, then use it to shop or send money. Select the card type, and fill in the card number, expiration date, and security code. The billing address will automatically pick what you had filled in your personal information. However, if you want to change, the drop-down arrow will allow you to do so.

Link your card to your PayPal account.


Step 2: Apply for PayPal Credit

Once you have set up an account, you can apply for PayPal credit. For quick approval, ensure your credit history is good. To apply for PayPal credit, go to the PayPal website and click “Personal” at the top of the page.

Navigate to PayPal Credit and Cards.


From the drop-down menu, select PayPal credit and click on Apply Now.

Click the Apply Now button.


Step 3: Read the Details of the Credit Agreement

PayPal provides a set of offer details that you must read and understand before you continue. To comply with PayPal credit’s six-month rule, you can avoid interest charges on purchases that cost more than $99 if you pay them off within six months. You could delay making payments for up to six months without incurring interest or fees. However, if you fail to settle the full credit balance within the six-month timeframe, PayPal credit will apply six months’ interest on the purchase.

Click Apply Now again.


Step 4: Sign Into Your Account

Enter your email/phone number and password.


To access your PayPal account, enter your email address and password in the fields provided, then click on the Log In button to proceed.

Step 5: Confirm Your Billing Address

To provide a billing address, fill out the form on the left side of the page with your preferred street address, city, state, and ZIP code.

Enter your billing details.


Step 6: Fill Personal Information Form

To complete the necessary fields on this page, fill in your date, month, birth year, social security number, and phone number.

Enter your name, date of birth, and other details.


If you don’t own a mobile phone, select the Mobile option and choose Home before providing your home phone number.

Step 7: Click Agree and Review Terms

It’s essential to read through the terms of use carefully. Although the terms of use can be lengthy and unremarkable, it’s vital to stay informed about any modifications PayPal has made to the PayPal Credit conditions.

Click Agree and Apply when prompted.


By doing so, PayPal will initiate the process of assessing whether you qualify for PayPal Credit.

Step 8: Wait For Confirmation

After submitting your application, PayPal will respond to your eligibility for a credit line in less than a minute. To approve your application, PayPal will check your credit score as banks do before issuing a loan. PayPal credit operates differently from traditional credit providers as they do not inform credit bureaus of your positive or negative payment behavior after approval. 

This implies that your credit score will be fine with missed payments. Conversely, consistently paying on time will not boost your score either. However, this does not imply that you can default on your payments, as repeated missed payments could lead to account closure and accrual of late fees. If your application is successful, select Continue to return to your PayPal account.

Step 9: Using PayPal Credit

You must designate your credit as your primary payment option to use your credit for in-store purchases. Access your account by logging in and navigating to the settings section. Click on the payments tab, then scroll down to the bottom of the page to find your preferred payment method.

Set your preferred method of payment.


Select your credit account from there, and save the changes by clicking the Change button followed by Save. After that, you can use your credit for purchases at stores.

You can change your preferred way to pay for purchases.


Step 10: Use PayPal to Check Out

When you make a purchase using PayPal at a physical store, there are two ways. It is important to remember that since you don’t have a physical card, you need to use the PayPal mobile app for both methods. Thus, download and sign in to the app before making any purchases. 

Some stores may require you to provide your mobile number associated with your account and a PIN. Once you enter your phone number and PIN, a QR code will appear on your mobile device, which the cashier can scan to complete the transaction. If you haven’t set up a PIN for your account, you can easily create one under your security settings by clicking Create next to your mobile PIN and then selecting Add or change the PIN.

A mobile PIN helps you make secure payments from your device.


Certain stores may require a code instead of a pin when paying with PayPal. If this is the case, you’ll need to utilize the PayPal mobile app to create a unique passcode for the transaction.

Enter your PIN.


To generate the passcode, launch the app and navigate to the store section at the bottom of the screen. From there, you’ll see a selection of eligible stores based on your location. Once you’ve chosen the store where you want to purchase, a four-digit code will be generated for you.

You typically use a one-time PIN for a specific transaction at the store.



PayPal Credit offers a 0% interest rate for six months on limitless purchases of $99 or above. You have up to six months to pay off your balance for $99 or more purchases without incurring interest charges. With PayPal credit, you can enjoy the flexibility of paying for your purchases over time while avoiding costly interest charges. So, don’t hesitate to try it and see how PayPal credit can benefit you.

To learn more about how PayPal Credit works check out the video below which walks you through how to apply for and use it.

PayPal in the News

In June, 2023, PayPal announced that it would be introducing Tap to Pay for Venmo and PayPal Zettle Businesses in the U.S. This new feature will allow small businesses to accept contactless payments directly on their mobile devices without additional hardware such as card readers.

The company has also been making headlines for its strong financial performance. In the first quarter of 2023, PayPal reported earnings per share of $1.28; this amount beat analysts’ expectations by 17%. Revenue for the year was also up 17% year-over-year to $6.48 billion.

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Frequently Asked Questions

How do I spend PayPal credit?

PayPal Credit can be used at almost any online merchant that accepts PayPal. To use it, you can select PayPal Credit as your payment method at checkout or apply for it instantly during the payment process via PayPal.




How to use PayPal step by step?

To make a purchase using PayPal, follow these simple steps:

  • Sign up for a PayPal account and link your credit card information to your digital wallet.
  • Select the PayPal button when you’re ready to make a purchase.
  • Log in to your PayPal account using your email address and password to confirm your payment details.
  • After the payment has been processed, sit back and relax. You can rest easy knowing that your purchase is complete and secure with PayPal.

Why can't I use my PayPal credit?

If you’re having difficulty paying with PayPal Credit, it could be due to factors such as exceeding your credit limit; to check this, click “PayPal Credit” on your Dashboard to view your current credit line and available credit.

Do you get a card with PayPal credit?

PayPal Credit is not a physical card and cannot be used at physical stores. However, the ease of signing up and being approved is high since all that’s needed is a PayPal account and completing an online application.


Can you transfer money from PayPal credit?

Sending money to friends and family or depositing funds into your bank account is not supported using your PayPal Credit limit.

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