PayPal Credit Agreement: What You Need to Know

If you`re considering PayPal Credit as a financing option, it`s essential to understand its terms and conditions. PayPal Credit is a revolving credit line that can be used for purchases at any website that accepts PayPal. Here`s a breakdown of what you need to know about the PayPal Credit agreement.

Interest Rates

PayPal Credit offers variable interest rates based on the Prime Rate. The current Annual Percentage Rate (APR) for PayPal Credit is 23.99%. However, it may vary based on the Prime Rate, and the APR may increase if you make a late payment or exceed your credit limit. Make sure you understand your interest rate and the factors that may affect it before signing up for PayPal Credit.

Minimum Payments

The minimum payment for PayPal Credit is the greater of $35 or 3.00% of the outstanding balance. If you only make the minimum payment, it will take longer to pay off your balance and you`ll end up paying more in interest. To avoid this, try to pay more than the minimum payment whenever possible.

Late Fees

If you make a late payment on your PayPal Credit account, you`ll be charged a late fee of up to $39. Make sure you make your payments on time to avoid this fee. If you`re having trouble making your payments, contact PayPal Credit`s customer service to discuss your options.

Credit Limits

Your credit limit for PayPal Credit is determined based on your credit history and other factors. You`ll receive a credit limit when you`re approved for the account, and you can request a credit limit increase if needed. Keep in mind that exceeding your credit limit can result in fees and a higher interest rate.

PayPal Credit Protection

PayPal Credit offers several protection options, including Purchase Protection and Return Shipping on Us. Purchase Protection covers eligible purchases made with PayPal Credit if they`re not delivered or if they`re significantly different from the seller`s description. Return Shipping on Us covers return shipping costs for eligible items purchased with PayPal Credit.

Bottom Line

PayPal Credit can be a useful financing option if you use it responsibly. Make sure you understand the terms and conditions of the PayPal Credit agreement before signing up. Always make your payments on time and try to pay more than the minimum payment whenever possible. By doing so, you`ll avoid late fees and high interest rates and keep your credit in good standing.