PayPal For Dummies

Chapter 6

PayPal Credit

In This Chapter

• Applying for a line of credit
• Accepting the terms of the credit agreement
• Using your credit account
• Purchasing multiple items
• Calculating how much your monthly payments will be
• Staying within your limits
• Making sure your contact information is up-to-date

It happens sometimes … you want to purchase an item and there's not enough money in your PayPal account. But if you have a PayPal line of credit, you can purchase either to your heart's content or until you hit your credit limit, whichever comes first.

To be able to use your PayPal Buyer line of credit, you have to use PayPal to pay for the item. When it's time to make the payment, PayPal Buyer shows as one of the funding options available to you to finance your purchase. If you're approved for the line of credit, you won't get a standard plastic credit card in the mail. Instead you receive a paper “card,” which shows your Credit Line number.

You have some advantages to using your line of credit instead of paying for merchandise with a credit card. Unlike many credit cards, there are no activation or annual fees for your PayPal Buyer Credit. PayPal's Buyer Protection program covers merchandise purchased with Buyer's credit, assuming the other criteria required by the Buyer's Protection program has been met. (See Chapter 2 for additional details.) Payments made with your line of credit do not count against your total spending limit (for unverified PayPal members).

Applying for Credit