About PayPal Credit and Our Offers

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:

  • 0% for 4 months on all purchases of £99.00 and over; and

  • instalment offers with selected merchants.

  • 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:

  • any instalment offer payments due for that month;

  • the full balance if less than £5.00, or the higher of £5.00 or 2% of the outstanding balance (which excludes any instalment offer balances, but includes any 0% for 4-month offer balances); and

  • any interest, charges, and arrears.


  • If you fail to make minimum repayments on time or in certain other circumstances, PayPal may remove your offer. Please see your Credit Agreement for more details.

    Here’s an example of how your minimum repayment is calculated:
    Assuming you had the following transactions on your account:
    Instalment offer Standard balance0% for 4 month balance
    £600.00 at 0% interest, spread over 6 months £300.00£100.00
    The minimum repayment for each component would be calculated as follows:
    £100.00 2% of £300.00 = £6.002% of £100.00 = £2.00
    Your minimum repayment would be £100.00 + £6.00 + £2.00 = £108.00
    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 circumstances, 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.
    You can have multiple promotional offers on your account, up to your agreed credit limit and without needing to reapply. This means you can combine standard purchases with the two types of promotional offer available to help spread the cost and manage your budget.
    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:
    • Entire £67.10 allocated to Instalment Plan 1 (the camera at 9.9% p.a.).

      This is because any amount in excess of the minimum monthly payment due is used to repay that remaining instalment balance. This will NOT reduce monthly instalments due going forward but will shorten the duration of your plan so that it will end sooner.

      If the balance owed on the camera was £250, we would allocate £22.90 plus £67.10 toward repaying this, resulting in the balance the following month being reduced to £160. You would still be required to make a repayment toward the camera purchase in the following month but the instalment plan would end earlier than 30th October.


    • £0 toward your standard variable rate balance as you are not repaying a standard balance for this statement period. A standard balance is made up of standard purchases of goods and services you make using PayPal Credit that are not promotional balances.
      A balance of £80 for the purchase of clothes does not qualify for a promotional offer of 0% (less than £99) or an instalment plan so this is a standard variable rate balance.
    • £0 toward your Promotional Offer 1 (sunglasses)
    • £0 toward your Promotional Offer 2 (watch)
    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:
    • Toward your Promotional Offer 1 (the sunglasses) because the interest free period is expiring this month on 30th June which repays this purchase of £100 in full; then
    • Any amount remaining after payments towards Promotional Offer 1 (your sunglasses) pays down the remaining Instalment Plan 1 (the camera). This will not reduce monthly instalments due going forward but will shorten the duration of your plan so that it will end sooner; then
    • £0 toward your Promotional Offer 2 (watch) unless your camera purchase has been repaid in full (this is because this offer not expire until 30 July).


    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.

    Getting Started

    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
    The first stage of the PayPal Credit application process will ask you to sign into your PayPal account or offer you the opportunity to sign up for one. Once you’ve signed up for a PayPal account, you can begin the application for PayPal Credit. Click here to apply.Click here to apply Signing up for a PayPal account is free and easy; all you need to do is provide your email address, create a password and accept our User Agreement.
    The application form takes minutes to complete. We'll then run a credit check and if approved, you’ll have a credit limit linked to your PayPal account once you’ve accepted your credit agreement. This approval process will only take a few seconds and then you’re ready to go. There can be a time lag between approval and when you can view your PayPal Credit account online but this should update within a few days.
    You can contact PayPal Customer Services to change your business account to a personal account to apply for PayPal Credit. Alternatively, you can create a new personal account to apply.
    To determine the size of your credit line we use the information you provide in the application form along with internal PayPal data and an external credit check.

    Make a Payment

    You can make a single payment from your bank account, debit card or PayPal balance at any time, online by logging into your account and clicking 'Make a Payment'.
    You can also make a payment by calling PayPal Customer Service on 0800 368 7155. Through customer services, we can accept payment via any debit card, even those not linked to your PayPal account.
    make a payment slide-1make a payment slide-2make a payment slide-3make a payment slide-4make a payment slide-5
    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.
    direct debit slide-1direct debit slide-2direct debit slide-3direct debit slide-4direct debit slide-5
    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.
    We will automatically send you monthly reminders to notify you of when your payment is due. We’ll ask you to make your first payment around 35 days from when your PayPal Credit account was opened.
    We will automatically send you monthly email reminders 5-15 days in advance of your payment due date. In order to receive these reminders, ensure the correct email address is linked to your PayPal account.
    Payments will reflect on your PayPal Credit account the same day you make them, however, will show as pending. It can take up to 5 working days for the funds to leave your bank account and be applied to your PayPal Credit account.
    No, you can either make a payment from your bank account, debit card or PayPal balance or set up a direct debit.
    No, you can only set up direct debit payments from a bank account linked to your PayPal account.
    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:Alternatively:
    You can find this out by logging into your PayPal account on a desktop computer and by clicking on the summary page. You can also view when to make a payment via the app. Click on PayPal Credit and the ‘Make a Payment’ button.

    Manage your account

    You can keep track of your PayPal Credit activity and history by logging in to your PayPal account and selecting PayPal Credit.
    manage account slide-1manage account slide-2
    • 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.
    find statement slide-1find statement slide-2find statement slide-3
    • Login to your PayPal account
    • Select the “Settings” icon
    • Update your contact details
    contact details slide-1contact details slide-2
    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.

    Using PayPal Credit

    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.
    If you have the PayPal App, we’ll notify you every time you use PayPal to pay, including PayPal Credit transactions. If you don’t have the App, you can download it here
    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.
    Currently, your PayPal Credit limit cannot be used to send money to friends and family or to deposit funds into your bank account.
    Currently, your PayPal Credit limit cannot be used for a cash advance.
    PayPal Credit will not be available as a funding source to pay an invoice or money request sent via PayPal.
    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”

    Fees

    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.
    No. There is no annual fee for a PayPal Credit account.

    Persistent debt

    Persistent debt is defined as any customer who pays more in interest, fees and charges than they repay of the amount they borrowed (known as “principal”) in a rolling 18-month period (with a balance greater than £200.00 GBP during that time). We will notify you if you consistently fall into this category at 18, 27, and 36 months.
    As a responsible lender, PayPal monitors the repayments of our customers. We look for signs of potential difficulty and try to recognise where improvements can be made. In this instance we’ve identified that if you increased your repayments you would repay your debt more quickly and reduce your interest costs.
    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.
    If you don’t think you’ll be able to increase your payments because of other financial commitments, you can call us on 0800 368 7155. We’d like to help talk you through the options that may be available to you. We’re open 8.00am to 6.30pm Monday to Sunday.
    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/

    Cross Currency

    PayPal Credit can now be used to purchase items in all currencies PayPal supports. PayPal will convert all transactions into UK Pound Sterling in advance of applying them to the Credit Account. Transactions will be displayed in your local currency when they show on your PayPal Credit statement.
    If a currency conversion is needed for your payment, it will be completed at the transaction exchange rate we set for the relevant currency exchange. When you select PayPal Credit as your payment method you will see the exchange rate displayed at checkout. For further information on how we convert currency, see the user agreement.
    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.)
    Yes. If an eligible item that you’ve bought online doesn’t arrive or is significantly not as described in the seller’s description, you can make a claim under PayPal Buyer Protection. Buyer Protection covers all your eligible PayPal purchases including those paid with PayPal Credit.
    You can return the goods to receive the refund, if eligible, direct to your PayPal Credit account. The refund will be displayed in the amount you paid in GBP.
    At checkout, you will be shown the transaction value in the original currency that appears on the merchant’s website as well as the converted transaction value in GBP.
    Your PayPal Credit statement will show the transaction in GBP only. No exchange rate information will be shown. You can however view the exchange rate information in your customer dashboard online as well as viewing your activity on your PayPal account statement.

    Credit Limit Increases

    We review your credit limit monthly and may invite you to increase your limit once you’ve been a PayPal Credit customer for at least 3 months. You can always request a credit limit decrease or opt out of receiving offers to increase your credit limit.
    No. Unfortunately, you cannot request a credit limit increase. Credit limit increases will be offered to you when you become eligible.
    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:

    limit preferences slide-1

    limit preferences slide-2
    You can change your limit back to its original limit at any time by calling PayPal Credit Customer Service on 0800 368 7155.
    No, your new preferences will apply to all future offers only.
    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.
    Yes, when you are offered a credit limit increase you can choose to apply it to your account straight away or at any time before the offer expires.
    No, once an offer has expired you’ll need to wait until your next offer. We review your credit limit monthly and will continue to offer you a credit limit increase as long as you meet our eligibility criteria.

    Credit Limit Decreases

    As responsible lenders we constantly monitor exposure and utilisation of customers’ limits. Following a reassessment of customer credit limits, we have decided to reduce your limit to a more appropriate level. Unfortunately, there is not an option to keep your existing limit and PayPal has the right to reduce your limit at any stage as referenced in section 1.6 of your PayPal Credit agreement.
    Unfortunately we are unable to change the limit reduction amount.
    No, unfortunately not, your limit decrease will take effect on the date specified in your email communication.
    No. As a responsible lender we regularly get updates from credit reference agencies on your account. These updates along with a change in limit do not appear on your credit file.
    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

    Other FAQs

    We’ll email you with more information about why your application for PayPal Credit was unsuccessful. If you apply during check out and get declined for PayPal Credit, you can still use PayPal to check out securely with your debit or credit card.
    If you want to re-apply, you will be able to 35 days after your last application.
    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 circumstances. [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.
    We are required to carry out creditworthiness and affordability checks to determine if PayPal Credit is right for you. As part of this process, we review information held on you by credit reference agencies and other relevant information prior to approving you for PayPal Credit.
    You may withdraw from your PayPal Credit account by calling us within 14 days of entering into the Credit Agreement. You may close your PayPal Credit account at any time, but must repay any outstanding balance.
    PayPal Credit can be used to purchase items in all currencies that PayPal supports.
    The first option is to contact the merchant and see if they can cancel the order. If it’s too late for the merchant to do so, then you can return the goods to receive the refund direct to your PayPal Credit account.
    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.

    Contact Us

    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.

    Representative Example:

    Representative

    23.9% APR (variable)

    Purchase interest rate

    23.9% p.a. (variable)

    Assumed Credit limit

    £1,200.00

    Apply for PayPal Credit now

    Apply Now

    *Credit subject to status. Terms and conditions apply. UK residents only. PayPal Credit is trading name of PayPal UK Ltd.