How to Apply | What Is PayPal Credit FAQ | PayPal UK (2024)

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• About PayPal Credit and Our Offers
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PayPal Credit is like a credit card, without the plastic. It’s a credit limit that’s attached to your PayPal account which you can use for your online purchases.

If your application is successful, PayPal Credit will be available as a funding source within your PayPal wallet and can be used for purchases in most places where PayPal is accepted. You can make purchases in the same way as you would with a normal credit card, by choosing PayPal Credit as your funding source at checkout.

PayPal Credit will provide you with a monthly statement showing your transactions and detailing the minimum repayment amount. Repayments can be made by monthly direct debit, directly from your PayPal account or by speaking to our customer service agents. For further information on how you can pay your PayPal Credit balance, see the ‘Make a Payment’ section below.

For purchases less than £99.00, interest is charged at your standard variable rate if the full amount is not paid off by the date shown on your statement.

In addition, PayPal Credit lets you access two types of promotional offers:

If you use any of these promotional offers, they will also be detailed on your monthly statement, as well as in the PayPal Credit section of your PayPal account.

Your monthly minimum repayment will be shown in each statement and in the PayPal Credit section of your PayPal account. Any offers you have are also detailed in these locations.
Your minimum repayment amount is calculated based on your purchases, and will include:

If you fail to make minimum repayments on time or in certain other circ*mstances, PayPal may remove your offer. Please see your Credit Agreement for more details.
Here’s an example of how your minimum repayment is calculated:

0% interest for 4 months is available on single transactions of £99.00 or more. This means when you spend more than £99.00 in one shopping basket, you’ll benefit from the offer and won’t be charged any interest on that transaction for 4 months after purchase. This applies automatically to any purchase made using PayPal Credit in excess of this value, except those to which another promotional offer (such as an instalment offer) applies. You can use this offer as many times as you like as long as you have an available credit limit.

During the 4 months’ offer period, the 0% balance is included in calculating your monthly repayments. You must make your minimum monthly payment or your 0% offer may be removed. Any remaining balance due after the offer period or any transactions under £99.00 will be charged interest at your standard variable rate. Please see the Credit Agreement for more details.

With selected merchants, when you check out with PayPal Credit, you’ll be shown a selection of instalment offers which enable you to spread the cost of your purchase across a number of repayments. These instalment offers vary by merchant and allow you to choose a set monthly repayment over a period from 6 to 48 months to help spread the cost of larger purchases in a more manageable way.

Instalment offers will always have an interest rate lower than the standard variable rate, and many merchants offer 0% instalments with PayPal Credit. If you already have PayPal Credit, you can take advantage of these offers without having to reapply as long as you have enough available credit limit.

It is important that you think about whether you can afford the monthly repayment agreed for any instalment offer. This will be added to your monthly minimum repayment amount and will need to be paid each month.

If you fail to make repayments or in certain other circ*mstances, PayPal may remove your offer and any outstanding amount will be charged at your standard variable rate. Please see the Credit Agreement for more details.

Assuming you are up to date with your repayments from previous billing periods, we apply your payment first toward the minimum amount due in your statement and then any additional amount left is allocated as follows:

• Toward any monthly payment due on an instalment plan. If you have more than one instalment offer plan, our system will repay the plan with the highest interest rate first followed by the plan(s) at a lower interest rate(s); then
  
• Toward balances that are subject to the standard variable interest rate (interest and fees on your statement are paid off before any principal); then
  
• Toward any promotional offer balance: this could be your 0% p.a. interest for 4 months on purchases over £99, that is yet to expire or the balance of an instalment plan; then
• Toward any other balances shown on your statement.
  

If you have two or more instalment plans with the same interest rate or two or more promotional offers (for example two 0% p.a. interest for 4 months purchases, one expiring in June and one in September) repayments are allocated based on the expiry date, with the soonest to expire being repaid first.
Example:

On your May statement, you have a balance of £750 which comprises the following purchases:

• Sunglasses- £100 @ 0% p.a. for 4 months expiring on 30th June (Promotional Offer 1)
  
• Camera- £250 @ 9.9% p.a. for 12 months expiring 30th October (Instalment Plan 1)
  
• Watch- £400 @ 0% p.a. for 4 months expiring on 30th July (Promotional Offer 2)
• £0 balance at standard variable rate
  

The minimum payment due assuming no interest or charges have been applied is £32.90. This is the Instalment Plan 1 monthly amount due plus 2% of each Promotional Offer balance.

You decide to pay £100, which is more than the minimum payment due but less than the full balance.
From your £100 payment, £32.90 is allocated to the minimum due payment, which leaves £67.10 to be allocated to the above balances as explained here:

NOTE: Purchases on a 0% p.a. for 4 month promotion will only be paid down in the event there are no Instalment Plans or standard variable rate balances on your account.

How would your repayment be allocated the following month (on your June statement)?

Assume you have not made any new purchases in the last month, your minimum due payment this month is again £32.90. One of your Promotional Offers (sunglasses) is due to expire this month. This means if you do not repay the full amount outstanding on the sunglasses this month, we will start to charge interest on that outstanding amount from next month.

The balance on the sunglasses is £100.

We tell you when your promotional offer is due to expire, and you decide you want to repay the full £100 balance for the camera to avoid interest being charged.

You make a payment of £132.90 (£100 + £32.90) which is more than the minimum due but less than the full balance.

This means after repaying the minimum due amount of £32.90 we will allocate the remaining £100 in the following way:

No. You cannot select which purchases to pay off first, as our system is designed to automatically apply your repayments to purchases with the highest interest rate first whilst also ensuring that any instalment offer plans are repaid within the term of the plan.

This means if you have any promotional offer purchases (0% p.a. interest for 4 months on purchases over £99) and are also repaying an instalment plan(s), our system will always allocate repayments over the minimum monthly payment to the instalment plan(s) with a higher rate of interest first. The exception is where your 0% p.a. for 4 months offer is going to expire in that month, in which case we will apply your repayment over the minimum monthly payment to that 0% for 4 months offer before the instalment plan.

However, this is to your advantage as it means you pay less interest overall across all of your PayPal purchases.

To avoid being charged interest on any 0% p.a. for 4 months purchase, you must repay any remaining balance of that purchase in full during the month that the interest free period expires.

If your PayPal Credit account balance is comprised entirely of purchases at a 0% p.a. for 4 month Promotional Offer, your payments will be allocated to those balance based on the date order in which the promotional offers expire.

Information about any active Promotional Offers and Instalment Plans (such as remaining balances and the expiry dates) can be obtained at any time, by logging into your account on PayPal.com or in the PayPal mobile app.

We will also email you at least 14 days before your promotional offer interest free period is due to expire.

Applying for PayPal Credit is easy. Simply complete our short application form here and, if approved and once you accept the Credit Agreement, you’ll have a credit limit linked to your PayPal account almost straight away.
Before you apply, please make sure you:

• Are a UK resident aged 18 years or older
• Have a good credit history
• Have not recently been declared bankrupt
• Are employed and have an income greater than £7,500 per year

You can set up monthly direct debit payments, provided you have a bank account linked to your PayPal account.

• Log into your PayPal account and select PayPal Credit
• Select “Set up a direct debit payment”
• Choose how much you want to pay each month and from which bank account.

Not added a new bank account to your PayPal account?

To add a new bank account to your PayPal account:

• Log in to your account
• Select “wallet”
• Choose “add a bank account”.
• Once a bank is added, you can make payments directly to your PayPal Credit account or set up a direct debit.

There are 4 different options available when you choose to set up Direct Debits. You can choose to pay:

• the minimum amount due
• the last statement balance
• any "other amount" in between each month.
• If I make changes to my direct debit how long will it take to implement?
  If you make changes to your direct debit it can take up to a month to implement which means you may need to add a manual payment in month to ensure you are covered and the direct debit changes will be implemented the following month.

If you choose to pay the minimum amount due or the last statement balance, you will need to set up the Direct Debit at least 4 working days before your due date for the Direct Debit to start on that due date. If you set it up any later than this, the Direct Debit may not start until the next month. We will tell you when you’re setting up the Direct Debit exactly when it will take effect from and if you need to make an interim payment.

If you choose to pay any "other amount", it is important to note that the Direct Debit will not start on your next due date. It is likely to start the following month. Please be sure to make a single payment the month you set it up to avoid missing any payment due. We will tell you when you’re setting up the Direct Debit exactly when it will take effect from.

If you're finding it difficult to make a payment, Please call our PayPal Credit customer service team on 0800 368 7155 and we will do our best to help you. The organisations below should also be able to answer your questions and suggest suitable courses of action:

Citizens Advice:

• England and Wales www.citizensadvice.org.uk
• Northern Ireland (Advice NI) www.adviceni.net
• Scotland (Citizens Advice Scotland) www.cas.org.uk

Alternatively:

• Payplan: call 0800 917 7823 or visit www.payplan.com
• StepChange Debt Charity: call 0800 138 1111 or visit www.stepchange.org
• National Debtline: call 0808 808 4000 or visit www.nationaldebtline.org/

• Login to your PayPal account on your desktop and select PayPal Credit
• Select "See statements"
• You can view all statements online as well as download them as PDFs

We will email you monthly to let you know when your latest statement is ready to view.

• Login to your PayPal account
• Select the “Settings” icon
• Update your contact details

Before you close your account, you need to ensure that your balance has been paid off in full.

To close your account, you can call our PayPal Credit customer service team on 0800 368 7155.

PayPal Credit is available to use at thousands of stores online where PayPal is accepted. Transactions can be made in all currencies that PayPal supports, not just GBP.

We also offer instalment offers at select merchants.

• At checkout, choose to pay with PayPal
• Simply change the payment source to PayPal Credit
• Confirm and Pay

On those merchants where instalment offers are available, remember to lookout for PayPal Credit at checkout to see the offers available to you.

There are some business categories where PayPal Credit cannot be used as a payment option, so it won’t be offered to you as a payment option during checkout.

Excluded categories include merchants selling adult content, stored value cards, and gambling.

Yes. You’re not liable for unauthorised purchases made from your PayPal Credit account. PayPal Buyer Protection also applies to purchases funded with PayPal Credit. If this happens, you should immediately report it to us so we can investigate and resolve it for you. You can report an unauthorised transaction through the Resolution Centre of your PayPal account. This is independent of any other statutory rights you may have.

Here's how to report an unauthorised transaction:

• Log in to your PayPal account.
• Under 'More about your account', click Resolve a problem in our Resolution Centre.
• Click Dispute a transaction
• Select the item you wish to dispute, Click "Continue", and follow the rest of the instructions provided to submit your dispute.

You can access the PayPal Credit hub through your Business account.

• Log in
• Select “PayPal Credit”

Late Payments
If you’re late with a payment, PayPal may charge you a late payment fee of £12.00.

Returned Payments
You may be charged a return payment fee of £12.00 if you have insufficient funds to cover the payment.

Statements (Paper Copy)
We also charge a fee of £5.00 if you request that we send you a printed copy of a previous statement. All statements are available to download or view online within the PayPal Credit section of your PayPal account.

For more information on how these fees apply, please refer to the Outline of Credit, the Standard European Consumer Credit Information document or the Credit Agreement.

PayPal Credit offers a few different ways for you to make payments.

You might consider setting up a Direct Debit, which is an easy way to pay the amount you choose automatically rather than having to make them manually yourself each month. To set up a Direct Debit or change your existing Direct Debit, log in to your PayPal account.

Alternatively, you can make or schedule an additional payment in your account by following the link above and clicking the “Make a Payment” button. You can also make a payment by calling 0800 368 7155.

The Money Advice Service provides free and unbiased information and advice about financial services. They can be contacted by phone on 0800 138 7777 and by email at enquiries@moneyadviceservice.org.uk, or alternatively, via their website: www.moneyadviceservice.org.uk/en. If you live in Scotland, please consider www.moneyadvicescotland.org.uk.

Additionally, the following organisations may be able to help:

AdviceUK: www.adviceuk.org.uk/
Citizens Advice: www.citizensadvice.org.uk/
National Debtline: www.nationaldebtline.org/
StepChange Debt Charity: www.stepchange.org/

If you qualify for a promotional offer, either our instalment offers or our 0% for 4 months offer, this will be applied regardless of which currency you transact in.

(Occasionally, exchange rates may fluctuate and impact whether a non-GBP transaction qualifies for a promotional offer. If you believe you should have qualified for a promotion – please call our Customer Services.)

To be eligible for a credit limit increase you must:

• Have been a PayPal Credit customer for at least 6 months
• Have not been in arrears in the last 6 months
• Have transacted with PayPal Credit in the last 6 months.

Log in to your PayPal account and follow the ‘manage preferences’ prompts. You can also find the ‘Manage preferences’ link in the PayPal Credit tile on your Summary page, as shown below:

There are 3 options for credit limit increases:

• Automatically accept all credit limit increases. This means any future credit limit increase that is offered will be applied automatically to your account.
• Manually accept or decline each credit limit increase. This means that when an offer becomes available to you, you will need to log in to your account and accept or decline the offer yourself.
• Turn off credit limit increases. This means you will not be offered a credit limit increase even when you become eligible.

A decrease may or may not affect your credit score. To find out more, please reach out to the credit reference agencies directly.

The identities of the CRAs, and the ways in which they use and share personal information, are explained in more detail at:

www.transunion.co.uk/crain

www.equifax.co.uk/crain

www.experian.co.uk/crain

A Representative APR (Annual Percentage Rate) is an advertised rate shown on products where you borrow money so that an easier and fairer comparison can be made. It’s the typical total cost of a credit product expressed as a percentage, spread over 12 months. The Representative Annual Percentage Rate for a PayPal Credit account is 23.9% (variable). If you receive this rate, this is also the standard rate of interest that will apply to your purchases.

The Representative APR is the rate that at least 51% of those accepted for PayPal Credit will get. That means almost half of those customers who are approved may not receive the advertised Representative APR and will receive a different rate.

If you are approved for PayPal Credit, the rate we give you will depend on your individual circ*mstances. [Your actual APR and standard rate of interest is set out in your pre-contract information and Credit Agreement.]

Sometimes your purchase will benefit from a promotional offer with a lower rate of interest. Your standard rate of interest will not apply to transactions charged at a lower interest rate during the promotional offer period. See your Credit Agreement for more details.

We may increase your standard interest rate by giving you at least 30 days’ notice. For more information on when we would do this please see your Credit Agreement.

Yes. If an eligible item that you’ve bought online doesn’t arrive or doesn’t match the seller’s description, PayPal Buyer Protection will reimburse you. Buyer Protection covers all your PayPal purchases including those paid with PayPal Credit.

For full information on eligibility, see our User Agreement.

PayPal will act as any of your payment cards which you add to your Curve wallet - just sign into your PayPal account via the Curve app and you're ready to start.

To get set up, you'll first need a bank account, an eligible payment card or PayPal Credit – attached to your PayPal wallet (AMEX and VISA cards are not eligible). Then you'll be able to switch between paying with your PayPal balance, bank or any of these funding sources at any time from the level of the PayPal app. You can find the steps to add your account here.

You'll also be able to pay using both the physical Curve card and your smartphone's digital wallet (e.g. Apple Pay, Google Pay and Samsung Pay).

For more information, you can call PayPal Customer Service on 0800 368 7155.

Hours of service:
Monday to Sunday 8am to 6.30pm (GMT)

If you’re calling from outside the UK, call 0044 800 368 7155
Fax: 020 8080 6518

Alternatively, if you’re an existing customer you can use our secure message centre for all account related enquiries by logging into your PayPal Account.