PayPal is widely recognized as one of the most popular and widely used online payment systems in the world. It provides individuals and businesses with a simple and secure way to make and receive payments. One of the features of PayPal that has gained popularity over the years is its PayPal Credit service. PayPal Credit, which was formerly known as Bill Me Later, is a credit line that allows users to make purchases using a PayPal account and pay for them later.
If you`re considering applying for PayPal Credit, it`s critical to understand the terms and conditions of the agreement. In this article, we`ll cover the critical details of the PayPal Credit terms of agreement.
Interest Rates
The annual percentage rate (APR) for PayPal Credit purchases is 19.99%. The APR for cash advances is 25.99% with a minimum interest charge of $2.00. It`s vital to note that the interest rate can vary depending on factors such as creditworthiness and the type of purchase.
Minimum Monthly Payment
You are required to make a minimum monthly payment on your PayPal Credit balance. The minimum payment is either $35 or the sum of any Non-promotional balances, whichever is less. The payment is due on the last day of each billing cycle.
Late Payment Fee
If you miss a monthly payment, you will be charged a late payment fee of up to $39. To avoid late payment fees, ensure that you make your payments on time.
Credit Limit
Your PayPal Credit limit is determined based on your creditworthiness and other factors. You can view your credit limit by accessing your PayPal account.
Promotional Offers
From time to time, PayPal Credit may offer promotional financing options with 0% interest if you pay off the entire balance within the specified promotional period. You must make minimum monthly payments during the promotional period to keep the 0% interest offer active.
Conclusion
Understanding the PayPal Credit terms of agreement is a critical step towards making informed financial decisions. Before applying for any credit line, ensure that you have a clear understanding of the terms and conditions and are comfortable with the interest rate, minimum monthly payment, and credit limit. It`s also essential to make your payments on time to avoid late payment fees and protect your credit score.