It can be opened with any device. It is simple and convenient with no monthly fees, no minimum balance, no charge for inactivity, and secure payments. They however charge $3.95 when loading cash into your PayPal account in supported stores. They also offer 24/7 customer service.
Other services offered by PayPal include debit cards, credit cards for small merchants, and credit lines. Their services are free unless it has to do with currency conversion, sellers fees, person to person transfer, and transfer to international destinations
They offer a safe form of transaction that has end-to-end encryption. Nonetheless, it is safer to always enable two-factor authentication.
PayPal Credit Score
The minimum credit score required is 700. It is a good rating if you already have a good credit record. You can be declined PayPal credit if your credit score is below 700 based on your credit history. You can apply for PayPal credit online.
Tips To Get A Good Credit Rating Include:
Pay your debtsMake timely paymentsAsk to remove negative entries of paid accounts from the listAvoid taking our new debts frequentlyAlways know your credit score rating so you can easily detect errors if any. Keep your credit limits higher than what you owe.
PayPal Credit
PayPal offers an open-end revolving credit card account that provides a reasonable credit line that is built into your account allowing you to pay for your purchases and send money. It is important to note that when using PayPal Credit to send money, you will be charged a fee of 2.9%.
PayPal credit accounts are serviced by Synchrony Bank and works like a digital credit card.
Unlike many payment processors, PayPal does not charge any fees for its monthly credit card processing fees. There is a $0 annual fee if you have good credit. There is also no minimum purchase required to use a PayPal credit.
To get approval, you have to submit a short application form after which, you will be subjected to a full credit check.
You cannot use PayPal credit in stores. It only applies to online purchases and you can use PayPal credit to buy any consumer items from stores that accept them. It is also interesting to know that you can use your PayPal credit card to buy food from restaurants that accept PayPal. If the item is less than $99, you have 6 months interest-free. If however your purchase is over $150, your interest free period will only be 4 months. You stand a better chance if you use PayPal for your transactions often and eBay.
If you are purchasing online and do not have sufficient credit, PayPal will allow your transaction do through and immediately increase your credit limit.
If you miss payments or close your PayPal account with an existing debt it will affect your credit score as PayPal reports to the credit bureau. If you skip your payments for a long, your account will be handed over to the collections agents to recover the funds.
Requirements For PayPal Credit
To apply for PayPal credit, the following applies:You must be a US citizenYou must be over 18 yearsProvide your date of birthProvide your income after taxProvide the last 4 digits of your social security numberAgree to the terms and conditions.
Reasons For The Decline Of PayPal Credit
The decline of debit or credit cards;Expired card;No billing addressIf your application for PayPal credit is declined, you can reapply for credit after 35 days from your last application.
Summary
The pros of using a PayPal credit card includes easy application process, instant access to credit when you need it, gives you a 6months interest free period to repay your credit and offers protection on purchases. The cons of using a PayPal credit card are that it is expensive when sending money to others, offers no rewards system, and is expensive if you do not pay in time.
It is important to maintain a good credit rating so that when we fall short of finance and need assistance our good credit score will come to our rescue.
Does PayPal credit affect your credit score?
Yes. They report to the credit bureaus.
Does PayPal credit do credit checks?
Yes
Does PayPal credit affect your credit score?
Yes it does in the following instances:
When you take a pay pal creditIf you miss paymentsIf you increase your limitsWhen you close your accounts
Does PayPal credit help you build credit?
Yes
Is PayPal credit a credit card?
No
