If you want to maximize your PayPal account, then the first thing that you need to do is get a PayPal Credit card. Once you’ve done that, you need to use it wisely. Part of using it wisely is knowing when and how to increase PayPal Credit limit. Let’s go over all of this in more detail.
What Is PayPal Credit?
PayPal Credit is a proprietary credit card serviced by Synchrony Bank. Although it’s utilized as a digital credit card, it’s actually a reusable credit line that’s directly attached to your PayPal account. You can use it at millions of online stores where PayPal is accepted, simply by selecting the PayPal Credit option at checkout.
PayPal Credit comes with a variety of enticing perks. For example, you get 0% interest for six months on purchases exceeding $99. You’ll also be covered by PayPal’s purchase protection. It reimburses you if an item you order isn’t as described or arrives damaged. Plus, using PayPal Credit allows for a faster checkout process since you don’t have to enter any card numbers.
PayPal Credit doesn’t charge any annual fees. However, you can opt into the payment security program for an extra charge of $1.66 per $100 of your ending monthly account balance. This optional feature can cover your minimum monthly payments (or even your entire account balance up to $10,000) in the case of a qualifying adverse event, such as:
- Job loss
- Disability
- Hospitalization
- Leave of absence from work
- Terminal illness
- Loss of life
- Nursing home stay
How to Apply For PayPal Credit
If you don’t already have a PayPal account, you first need to sign up for one. Once your account is set up, you can apply for PayPal Credit, a process that should only take a few minutes. PayPal will ask for a few personal details, including your date of birth and income after taxes. After you agree to the terms and conditions, you should find out if you’re approved almost instantly.
According to PayPal’s website, a denial shouldn’t impact your credit score. However, if your application is successful, you will usually receive a hard inquiry on your credit report. Keep in mind that a hard pull can cause your credit score to dip slightly.
How to Use PayPal Credit Wisely
Obviously, any time that you access new credit, you want to use it wisely. After all, the point is to improve your financial status, not wreck it with debt. Therefore, with this particular card, you should make sure to:
- Always meet the minimum monthly payment. Autopay is a good solution.
- Pay off each 6-month debt within that time frame. Otherwise, your interest rate goes through the roof. Moreover, it becomes retroactive.
- Shop with PayPal’s top merchants using the credit line.
- Learn when and how to increase your PayPal Credit limit.
What Is Your PayPal Credit Limit?
Just like with every other credit card, your PayPal Credit limit results from a variety of different factors, such as:
- Your credit score
- Annual income
- Repayment history
- Number of credit accounts
- Overall length of credit history
PayPal Credit is serviced by Synchrony Bank. Therefore, if they approve you for the card, they’ll set your initial credit line. PayPal Credit limits typically range from $250 to $12,000 depending on individual creditworthiness. According to WalletHub, your initial limit will apply for at least six months. However, at or after six months, you can request to increase PayPal Credit limit.
How to Increase PayPal Credit Limit
According to WalletHub, there are two ways that you can request to increase PayPal Credit limit. There’s an online option through your account. Alternatively, you can call customer service at (866) 396-8254. The PayPal community doesn’t confirm the online account request option. However, it does confirm that calling customer service is the right way to approach a request to increase PayPal Credit limit. If the above number doesn’t work for you, check your monthly credit card statements for the phone number for your account.
Financial experts warn that requesting a credit limit increase could result in a hard pull on your credit report. Hard inquiries usually ding your credit score slightly, whereas soft pulls do not. Although some customers report that PayPal only performed a soft pull when they requested a credit limit increase, it’s best to exercise caution. For example, if you’re planning to apply for a mortgage in the near future, it’s probably wise to hold off on asking for credit line increases for now.
Tricky Way to Try to Increase PayPal Credit Limit
Your PayPal account isn’t just linked to your PayPal Credit card, of course. You probably have multiple payment options linked, such as your bank account and perhaps other credit cards. Therefore, you can purchase with your PayPal Credit card that exceeds your limit. The transaction will pull all available money from the credit line first. Then it will utilize your additional accounts to complete the transaction, allowing it to go through.
This sometimes triggers Synchrony Bank to increase PayPal Credit limit on your account. Note that this isn’t always going to happen, as outlined in PayPal Credit’s terms and conditions. However, it is one possible method.
Additional Tips to Improve Likelihood of Credit Line Increase
Like other lenders, Synchrony Bank periodically reviews your account to see if they should decrease or increase your credit line. You’ll have a better chance of both automatic increases and approval of requested increases if you:
- Always pay your minimum balance.
- Keep on top of your credit reports. Make sure you maintain a good credit score.
- In particular, stay aware of your debt: credit ratio. Too high and you aren’t a good candidate for an increase.
- Keep your information up to date in your PayPal account. For example, if your income increases, make sure the company knows that.
- Wait at least six months in between requests to increase PayPal Credit limit for the best chances of approval.
In other words, be a great borrower and they’ll want to be a better lender. If you’re unable to qualify for a credit card, but still need funds for an unexpected expense, you may qualify for another emergency loan instead.
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Kathryn Vercillo is a professional writer who loves to live a balanced life. She appreciates a good work-life balance. She enjoys balance in her relationships and has worked hard to learn how to balance her finances to allow for a balanced life overall. Although she’s only blonde some of the time, she’s always striving for total balance. She’s excited to share what she’s learned with you and to discover more together along the way.
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