What is PayPal Credit?

Zorica Lončar
21.07.22
2 minute read

Heard of PayPal Credit but don’t know what it is, or whether you should use it? We’re here to help.

PayPal Credit is just like a credit card, but without the plastic. It’s a digital line of credit that you can use for online shopping, so you can spread the cost of larger purchases.

Read on for all you need to know about using PayPal Credit, including how it works, any fees you need to know about and how to apply.

Plus, a quick look at an alternative solution for those who prefer to use a debit card for online shopping - Wise. With the Wise international debit card, you can shop in multiple currencies for less.

How does PayPal Credit work?

PayPal Credit offers 0% interest for four months on all purchases over £99¹. This means you have four months to pay back the cost, which could be through monthly instalments depending on the retailer. This isn’t an introductory offer, and it’s reusable too - so you can use PayPal Credit for future purchases.

PayPal Credit is accepted at thousands of online stores¹, and it can also make the online checkout process faster.

Using PayPal Credit for online purchases

Once accepted for PayPal Credit (we’ll look at how to apply in a moment), the option will be added to your PayPal account as one of the payment methods you can choose for online shopping.

Then, all you need to do is shop online and select PayPal Credit when it’s time to pay. Some retailers will also offer the option to pay in monthly instalments using PayPal Credit².

You can manage your PayPal Credit account online, just like with PayPal. You’ll receive payment reminders too.

Are there any fees with PayPal Credit?

There is no annual fee to use PayPal Credit² . What’s more, you won’t pay any interest for four months on each qualifying purchase as long as you continue to pay your balance off in full each month (and on time).

However, PayPal Credit does have other fees and costs you need to know about. Let’s take a look:

Charges/interestFee/rate
Balance outstanding after four months21.9% p.a. (variable)¹
Late payments£12²
Returned payments (due to insufficient funds)£12²

How to apply for PayPal Credit

You can apply for PayPal Credit online, by completing a short application form. You should get a decision right away. If approved and you accept, you can start using PayPal Credit right away¹.

What is my PayPal Credit limit?

Credit limits do apply to PayPal Credit, but these are determined individually using the information in your application and an external credit check¹. You’ll find out your limit after your application is accepted.

Save on online shopping in multiple currencies with the Wise debit card

Prefer to avoid the potential costs of using a line of credit? Stick with a debit card, but not just an ordinary one. Go international with the Wise debit card, which you can use for online shopping at all your favourite global retailers.

With the Wise debit card, you can shop online in multiple currencies at the mid-market exchange rate. That’s the fairest FX rate you can get. There’s only a small currency conversion to pay, or it’s free if you already have the currency in your Wise account.

You can even use your card for real-life spending in 200+ countries, making it perfect for travellers, global businesses, expats and overseas students.

Open a Wise multi-currency account and get your own international debit card today.

Join Wise today


Sources used for this article:

  1. PayPal - PayPal virtual card
  2. PayPal - faq

Sources checked on 20-Jul-2022.


This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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