PayPal is one of the most used online payment services in the United States since it allows us to make quick transfers without revealing our data, only with our email. However, sometimes PayPal credit does not show up, so we will have to learn how to solve this problem.
This service is used to send and receive money securely and even internationally. Transactions can be made instantly through an online transaction that is completely secure, but sometimes there are errors in the platform.
What is PayPal Credit?
PayPal Credit offers users a way to extend the payment period for certain purchases through a credit line based on their creditworthiness. If PayPal approves our application for the program, we can choose “PayPal Credit” as a payment option for websites that allow PayPal payments.
The way PayPal Credit works is simple; once we have a credit account, we will be given the option to choose this option as a payment method. As long as we have enough credit available, we can make the purchase, but if we don’t have enough credit, we can allow the transaction to go through by increasing the credit limit instantly.
Common causes of PayPal credit not working
There are different reasons why PayPal credit may not work to make our payments. Among the main causes are:
- The merchant may have been banned by PayPal from accepting payments or may not be eligible to receive payments.
- Our card associated with our PayPal account is not working properly.
- We may not have enough money in our PayPal wallet to make online payments.
- Problems in the network we are using to make PayPal payments.
- There may be pending notifications from the PayPal team to verify our identity, so we will not be able to make payments.
What to do if the credit is not available?
Sometimes, it will not be possible to use PayPal credit to make our payments, the most common cause being that the merchant is not eligible. However, other common problems exist, such as the item being in a currency that is not supported.
PayPal Credit can be used when and how we want, although the process is simple, and we must meet certain requirements for the credit to be approved. If our credit is not available, we must know the requirements that the platform has, which are the following:
- Be over 18 years old.
- We must be residents of the country where we have requested the credit.
- Not to have CCR or bankruptcies.
- Have a regular and annual income.
- Have a good credit history.
If we fulfil these requirements, we will probably not have any inconvenience when using it.
Why can’t we send PayPal Credit money?
PayPal Credit can only be used to make online transactions and is not for in-store use. It is not an ideal option to send money to other people, since a fee will be added to the amount we are going to send if we do it to send money to our friends.
Sometimes, the PayPal Credit option will not appear to make our transaction because some risk is detected. In these cases, we will have to use another payment method or try to make the transaction later to see if the system gives us the option.
The limitations of PayPal credit include that we cannot use it to send money to our friends and family or to deposit funds into our bank account. Also, if we send an invoice or request for money via PayPal, it will not be eligible for payment using this method.
Fees that apply
PayPal Credit has a variable purchase APR of 23.99%, slightly higher than most credit cards’ average interest rate. There is no annual fee, but if we miss a payment, we will pay a late payment fee of up to $40 if we have not made a late payment in the last six months.
If we are not late in our payments, the late payment fee will be $29. Also, a $29 fee will be applied if any payment is returned.
There are two types of promotional rates, which will be:
- 0% APR for six months for purchases of $99 or more.
- Reduced interest rates for certain purchases.
If even $1 is owed after the day after the promotional period expires, we will pay deferred interest. For this reason, we will be charged all the interest we would have paid from the date of purchase if we had not earned the promotional rate.
How to apply for PayPal credit?
If we have a PayPal account, we can log in and apply for PayPal credit at any time, or we may also be offered the option to use when paying with PayPal when paying through an online retailer.
For the process, we will have to enter our date of birth, annual income, and last four digits of Social Security and accept the terms and conditions. With these data, PayPal will perform a comprehensive inquiry when our credit is verified, and in seconds we will have our decision.
Advantages and disadvantages
This service has both advantages and disadvantages, which we are going to look at:
- Different promotional periods will provide additional time to pay for large purchases without interest.
- Purchase protection.
- Very simple application process.
- It is an expensive service in case we do not pay on time.
- It cannot be used to make purchases in physical stores.
- No opportunities to earn rewards.
- It is impossible to send money from PayPal Credit to family or friends.
What is the difference between PayPal and PayPal Credit?
PayPal is a payment service that will directly withdraw funds from our bank account or credit card. We will also be able to keep the balance in our PayPal account to use it to make purchases.
For its part, PayPal Credit is a revolving line of credit, allowing us more time to pay for purchases. However, it charges an APR if it has a balance, so in the end, we will have to pay more money for our purchases. Although there is no minimum purchase amount, we will have to see if it is worth buying with this credit, considering the APR.