PayPal credit is a convenient way to shop online. However, one of the key questions is does PayPal credit affect your credit score?
Oct. 7 2021, Published 11:21 a.m. ET
The BNPL (buy-now-pay-later) space has been gaining immense interest lately. PayPal’s credit fits somewhere into this space. It lets you enjoy a zero percent interest offer again and again. PayPal is a good way to spread the cost of larger purchases. Many people want to know if PayPal credit can affect their credit score.
Article continues below advertisement Article continues below advertisementPayPal credit is a convenient way to do online shopping from merchants that use PayPal. However, unlike PayPal credit cards, PayPal credit doesn’t offer rewards.
Launched in 2016, PayPal credit is a reusable credit line that's available on purchases of millions of stores that accept PayPal. According to Credit Glory, you’ll need to have a minimum credit score of about 700 for approval for PayPal credit. All you have to do is to select the PayPal credit option when it comes time to pay. However, the PayPal credit line can only be used online and not in physical stores. You could also use PayPal credit to transfer money online.
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You can apply for PayPal credit by filling out a short application form online. You need to provide a few details like your date of birth, your income after taxes, and the last four digits of your social security number. You also have to agree to the terms and conditions. Once approved, you’ll have a credit limit linked to your PayPal account almost right away.
