In Q3 2018, there were over 254 million active PayPal users in the globe. It appears that people don't realize---or simply don't care---that there are several online payment processor alternatives to PayPal that are safer and ameliorate.

Sadly, convenience and availability tend to trump everything else.

And that'south true of the PayPal Credit Card every bit well. Despite its mixed reviews, a lot of people have and employ a PayPal Credit Card. Should you start using one too? Here'due south what you lot demand to know to make an informed decision.

How the PayPal Credit Card Works

PayPal actually provides iii dissimilar forms of credit:

  • PayPal Credit (formerly called Beak Me Afterwards)
  • PayPal Extras MasterCard
  • PayPal Smart Connect Card

As we learned in our overview of PayPal's consumer services, PayPal Credit isn't actually a credit card. It'southward only a credit line that'south office of your online account and comes with some benefits. The Smart Connect Menu is like, except you lot get a physical card.

When people talk about PayPal's credit carte du jour, 99% of the time they're referring to the PayPal Extras MasterCard, which is an actual credit carte du jour provided past Synchrony Depository financial institution. This is what we'll be focusing on for the residue of this commodity.

Hither's a quick rundown of what you lot go with a PayPal Extras MasterCard:

  • In that location is no annual fee for this card.
  • three points per $one spent at gas stations and restaurants.
  • two points per $1 spent at PayPal and eBay.
  • 1 indicate per $ane spent anywhere else, online or offline.
  • Redeem points for rewards. (More than on that below.)
  • MasterCard's built-in protections against various inconveniences, including identity theft, fraudulent purchases, and price drops within lx days.

How to Get a PayPal Credit Card

In lodge to become a PayPal credit card, y'all must voluntarily apply for one, be at least 18 years of age, and alive within the United States. Application approval is subject to credit approval by Synchrony Bank.

Depending on your credit score and history, Synchrony Banking concern will decide whether you get the PayPal Extras MasterCard (21.99%, 25.99%, or 28.99% APR) or the Smart Connect Carte du jour (26.99% Apr and no rewards program). Even if you apply specifically for the PayPal Extras MasterCard, there'due south no guarantee you'll get it.

Yet, afterward using the PayPal Smart Connect Card responsibly for a while, PayPal may decide to upgrade your account to an PayPal Extras MasterCard. This could accept between 12 and 18 months, depending on your credit-worthiness.

Should You Go a PayPal Credit Menu?

At that place are lots of choices y'all should consider when choosing a new credit card, specially for online shopping, and past now, the PayPal Extras MasterCard probably seems similar an awesome deal. There aren't any fees to using it, you get advantage points no matter what you lot buy, and you get the aforementioned level of protection as you'd go from any other MasterCard credit card.

But should y'all use for one? There are valid reasons to practise so, of course, but in that location are just as many reasons why you shouldn't. Depending on your answers to these five questions, you'll know whether getting one is in your best interests or non.

one. Practice You Already Have Consumer Debt?

If you're already swimming in debt, grabbing another credit card is one of the last things y'all should do. Fifty-fifty if the debt you have is so-called "proficient debt"---such equally a mortgage loan or student loans---yous should be wary nearly taking on more debt.

Information technology'southward easy to tell yourself that you'll be responsible with a new credit card, but the just way to know for certain is past beingness honest with yourself and your current credit situation. Are you lot responsible with your current finances? If non, you lot probably won't exist with any new debt.

In 2014, PayPal'due south VP of Credit noted that "[consumer spending] goes upwards 30% after a customer adopts a PayPal credit vehicle," citing previous studies at the company. That was true whether the credit vehicle was PayPal Credit or a PayPal credit menu.

ii. What Is Your Personal Credit Score?

Equally is true any time you use for a new line of credit, Synchrony Bank will want to know your credit history before blessing or rejecting your awarding. This means a hard credit inquiry, which will remain on your credit report for two years.

This means you shouldn't apply unless you're confident you'll be canonical. Getting a hard credit inquiry on your report and declining the approving procedure volition leave you in a worse land than before.

paypal-credit-card-credit-score

Nobody knows the exact criteria, of course, but the general consensus seems to exist a minimum credit score of 600 for the PayPal Extras MasterCard. Note that nothing is guaranteed and you may be rejected for other reasons unrelated to credit score.

three. Tin You Become a Better Credit Card?

The rewards program for the PayPal Extras MasterCard is pretty good, but at that place are other credit cards with better rewards programs out there. If you qualify, you might as well shoot for them instead.

The Blue Cash Preferred Card by American Express is one of the virtually coveted cards for advantage seekers. Information technology has a $95 almanac fee, but you become 6% cash dorsum at supermarkets, iii% cash back at gas stations and department stores, and i% everywhere else.

The Discover Information technology Card past Notice is another good i, earning 5% cash back on select categories that change every three months, including gas stations, restaurants, Amazon, wholesale clubs, section stores, and others. It has no almanac fee.

On the other hand, if you're going to bear a balance from month to month (which y'all should NOT do if y'all can aid it), then a depression-interest option similar the Barclaycard Ring MasterCard might exist amend, which has a xiii.99% variable April and no annual fee.

You may decide that the PayPal Extras MasterCard is yet best for you. Just make certain you explore what else is out there start.

four. Are the Rewards Highly-seasoned to You?

The only reason to choose a PayPal Extras MasterCard over another credit card is if you adopt its rewards program, peculiarly if you shop frequently with PayPal and/or eBay.

Indeed, a lot of people don't realize that PayPal actually has its own shopping portal and directory where you can notice a bunch of deals that you may not notice elsewhere. On height of that, you get 2x reward points per $1 spent in the PayPal shopping portal (and on eBay).

Obviously, this only matters if you actually care nigh the stuff you can redeem using your PayPal advantage points. Here are some of the more interesting things y'all tin get:

  • At 800 points, you tin can get gift cards for restaurants, gas stations, retail stores, and more.
  • At three,000 points, you can get direct merchandise of various kinds, including houseware, kitchenware, sports gear, electronics, gadgets, and more.
  • At six,000 points, you tin can become a directly greenbacks back reward with money deposited direct into your PayPal balance.
  • At 15,000 points, you can get travel vouchers for hotels, airfare, and car rentals.

5. Practice Yous Support PayPal's Business Practices?

Simply considering information technology's popular and used by millions all over the world doesn't mean that PayPal is doing things right---at least in terms of ethics and trust.

It'southward no hole-and-corner that thousands of people have been burned by PayPal in ane way or some other: frozen funds, lost transactions, closed accounts, and poor client support. Maybe you've been okay so far, simply yous could be the next unsuspecting victim.

In a more abstract sense, you accept to decide whether y'all're willing to do business with PayPal while knowing that they aren't treating their customers as well every bit they could exist. Do you want your hard-earned coin going to a company like that?

Maybe you don't care, and that's fine also. This is a personal decision and just you can make it, but for many information technology's been bad enough to warrant boycotts against PayPal.

Is a PayPal Credit Card Worth Information technology?

I have a PayPal Debit MasterCard that'southward tied to my PayPal remainder, but I haven't used it in years. I'd personally never consider the PayPal Extras MasterCard---but only because I take better credit cards available to me within my credit score range.

When would I consider a PayPal credit vehicle? If the only cards available to me had annual fees (such as the Majuscule I QuicksilverOne Rewards) or those with weak or no rewards (such as most student-level credit cards).

And for what it's worth, I've never had an issue with my PayPal accounts.

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Joel Lee (1499 Manufactures Published)

Joel Lee was formerly the Editor in Main of MakeUseOf from 2018 to 2021. He has a B.Due south. in Informatics and over 9 years of professional writing and editing experience.

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