PayPal credit enhancement is possible and has many benefits because you will have more purchasing power and will be able to improve your credit score by reducing your credit utilization rate.
To obtain it, you must prove to be a responsible credit user with your payments. If done correctly, the increase will be automatic. So far, there is no way to apply for credit enhancement on PayPal because it is an alternative for eligible users.
How to become eligible for a credit increase
To be eligible for a PayPal credit increase, one must be a customer of the credit for at least six months, have no pending payments in that term, and have made a sizeable enough amount of transactions during the six months.
When users comply with the above, they may receive a notification of the increase at the beginning of the month because PayPal reviews customers’ credit limits every month to verify who to select for a limit increase.
Once the invitation is sent, the customer is free to accept it and apply for the offer immediately. There is a specific time limit within which you can accept the offer; if it expires without a response, you will note the increase and have to wait for a new offer.
It is also an option to keep the income information and account profile updated to qualify. That could benefit you and allow you to be part of the qualified selection in the next credit line increases.
Tips for getting a PayPal credit limit increase
Some things that might make it easier to become part of the customers who qualify for the next credit increase in PayPal. These do not require too much effort and are things that should be kept in order every month to acquire higher benefits.
Evaluate the payment history
Imperfections and outstanding debts without elimination do not allow users to access credit enhancement. The payment history must be long and timely to be one of the qualified customers to access credit enhancements.
If any fault or error is assessed, it is essential to contact the corresponding company and request correction.
Correct inaccurate items on the credit report
At least 20% of credit reports have some error due to overdue accounts that were not removed or credits that the user has not requested. It is essential to make a detailed evaluation and initiate a dispute to remove the incorrect information.
Make a revenue update
When income increases, PayPal understands it is time to increase the user’s credit line because they will need it at some point to complete their purchases.
Monthly payments can’t be forgotten
Even if only the minimum amount of the due balance is paid each month, it is essential not to let the invoice expire without any payment because it will add interest and a bad reputation for the user, and, of course, PayPal may not consider them for credit enhancement.
To avoid forgetting invoices, activate the automatic payments option through the online platform. It is a tool that can be configured so that each month you make the minimum or total payment of the invoice on an exact date before the due date of the debt.
Does the limit increase if I exceed it on a purchase?
Some users claim that by making purchases that exceed their credit limits, they have received the credit increase they wanted. However, this is not an option for everyone. Certainly, when purchases exceed the limit, the platform will begin to evaluate the possibility of increasing it to complete the transaction.
However, you must be a user with a good payment history and sufficient income to show that you can take care of the debt in the future. PayPal’s limit theoretically is $250, but it can go up to $20,000.
The maximum will not be obtained overnight and is not an option for customers with less than six months using PayPal credit.