One Is A Credit Account And The Other Is A Credit Card
With its foundation in person-to-person payments, PayPal has built a solid reputation as a trusted source for sending money online. The platform has expanded its presence in the global economy, connecting consumers to retailers through its credit options: PayPay Credit and PayPal Mastercard.
One functions as a virtual credit line, while the other is a traditional credit card. Both make a solid case for consumers, but a deeper dive into the details makes it clearer when to choose which.
Is The Card For You
This card is a great fit for anyone who wants to earn cash back on every purchase without paying an annual fee or tracking bonus categories. The combination of 3% cash back on PayPal purchases and 2% on all other purchases and easy redemption makes it suitable for anyone seeking a simple to use rewards card as their main credit card. If you prefer to hold multiple cards, it can could be a great addition to your wallet for purchases that dont normally fall into bonus categories. But the high APR means this card is best for someone who doesnt typically carry a balance.
Is Paypal Credit A Bad Idea
Bottom Line: Is the PayPal Credit Card Worth It? Yes. The PayPal Credit Card is worth it because it has a $ 0 annual fee and good rewards. It will not be worth it if you do not pay the bill in full every month, however, due to the card’s high interest rate.
Is PayPal Credit a real credit card? PayPal Credit is an open end credit card account that provides a reusable credit line built into your account with PayPal giving you the flexibility to pay for your purchases right away or pay over time. It’s easy to apply, easy to use and there whenever you need it.
What happens if you don’t use PayPal Credit?
Recommended Reading: Does Td Bank Have Visa Gift Cards
How Safe Is Paypal
All PayPal transaction data are sent with end-to-end encryption designed to thwart any hacker seeking to capture private information as it moves from buyer to seller. This means your financial information isn’t revealed even to the recipient.
PayPal app users can employ a second authorization factor to make each transaction safer. After enabling the SecurityKey feature, you’ll get a temporary security code by text message that you enter in addition to your password.
PayPal lays out six recommendations for businesses to prevent fraud:
Here’s the problem: PayPal is safe from hackers, but you aren’t. They are looking for vulnerabilities in your purchasing activity, online and in the real world.
Paypal Cashback Mastercard Vs Citi Double Cash Card 18 Month Bt Offer
Verdict: The better flat-rate cashback card option for those looking for a top balance transfer offer
The Citi® Double Cash Card is one of our favorite cashback credit cards. Cardholders will Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
While this card has the same flat cashback rate as the PayPal Cashback Mastercard®, its distinguishing factor is its long intro APR on balance transfers. Cardmembers get an intro APR of 0% for 18 months on Balance Transfers after that the APR will be 13.99% 23.99% . If a balance transfer offer is appealing to you, the Citi® Double Cash Card will be the better choice.
You May Like: Should I Pay Credit Card In Full
Your Credit Card Debt Can Quickly Spin Out Of Control
Being able to use a credit card for expenses you wouldnt otherwise be able to pay in full can be a lifesaver in an emergency. But it shouldnt be a crutch that enables you to regularly spend beyond your means.
With credit cards, you typically have the option to pay a portion of your balance each month and the rest at a later dateplus interest.
But if paying your rent using credit might encourage you to revolve a balance more frequently, dont do it: The interest youre charged can quickly spiral out of control. Thats because you typically owe interest on not only the portion of the initial charge that you havent paid off yet, but also on any new interest you accrue .
Paying interest on a small balance might not seem like a big deal, but when you add a big expense like rent to the mix, over time you could end up owing your bank more in interest than the original charge itself.
You typically owe interest on not only the portion of the initial charge that you havent paid off yet, but also on any new interest you accrue .
Rent is even trickier because its a recurring expense. If you pay half the cost of your new car transmission now and the other half next month, thats just one charge you need to keep track of and pay off.
But lets say you need to pay half of your rent now and the rest later . By the time your next due date rolls around, youll have a whole new rent bill to pay in addition to whats left over from last month.
Is Paypal Good For Credit
Using PayPal isn’t inherently good or bad for your credit. However, if you use your PayPal credit card responsibly by paying off your card on time and in full each month, you’re likely to see your credit score go up.
For rates and fees of Blue Cash Preferred® Card from American Express, please click here
The information related to PayPal Cashback Mastercard® has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to American Express credit card offers. See americanexpress.com for more information.
These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Advertiser Disclosure: The products that appear on this site may be from companies from which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site . ValuePenguin does not include all financial institutions or all products offered available in the marketplace.
Read Also: Cabelas Visa Balance
What Are The Eligibility Requirements For A Paypal Rewards Card
According to PayPal, you must be 18 years or older and a permanent Australian resident to apply for a card. You must earn more than $35,000 per year and must have a personal PayPal account. You must have an Australian mobile number and valid email address.
PayPal says that it may also ask you to provide identification , as well as recent financial documents and details of your income, assets, debts and expenses.
Compare Credit Cards with Canstar
The table below displays some of our referral partners rewards credit cards for Australians spending around $3000/month and redeeming points for cash/vouchers. The results shown are sorted by highest star rating, then alphabetically by provider name. Use to view a wider range of credit cards. Canstar may earn a fee for referrals.
Cover image source: salarko/Shutterstock.com.
Thanks for visiting Canstar, Australias biggest financial comparison site*
Which Websites Does Honey Work On
According to the vendor, you can use the Honey plugin with over 40,000 online retailers in the U.S., Canada, Australia, United Kingdom and more. Once youve installed Honey, youll see an an h logo and the number of available coupons at the top of your browser window if the site youre visiting supports the app .
While Honey does not list all eligible retailers, Honey-supported websites include Adidas, Amazon, Apple, J. Crew, GameStop, Gap, Home Depot, Lowes, Macys, Old Navy, Sephora, Target, Ulta, Walmart, Wayfair and more.
Read Also: Best Buy Credit Login Citi
Here’s How To Get A Paypal Credit Card:
If you want a credit card for PayPal more than a PayPal Credit Card, the Citi® Double Cash Card 18 month BT offer is another good option to consider. It gives you 2% cash back on all purchases and also offers a balance transfer intro APR of 0% for 18 months. The Capital One Venture gives 2 miles per $1 on all purchases and has a generous initial bonus.
All in all, the PayPal branded cards have very decent rewards. But the top rewards cards on the market can give you much more.
The starting credit limit for the PayPal Credit Card isn’t disclosed. Every approved applicant’s credit limit will be determined by multiple factors such as their credit score, income, and payment history.
Not The Only Way To Earn Rewards On Paypal And Ebay Purchases
While the PayPal Extras Mastercard may seem like a great fit for loyal eBay shoppers and anyone who frequently uses PayPal for online payments, the card is far from the only way you can earn points or cash back on these purchases. Indeed, the PayPal Cashback Mastercard offers a flat 2% cash back rate on all purchases not just PayPal and eBay spending.
PayPal also regularly pops up as a bonus category with the Chase Freedom Flex and Discover it® Cash Back cards, both of which offer 5% cash back in rotating bonus categories upon enrollment . PayPal is included as a bonus category on the 2020 Discover Cashback calendar and is eligible for 5% cash back as part of the Q4 2020 Chase Freedom categories.
The Bank of America® Customized Cash Rewards credit card goes even further, offering year-round 3% cash back in a category of your choice, with online shopping as one option, along with gas, dining, travel, drug stores and home improvements and furnishings. Plus, you can change your preferred 3% bonus category once each calendar month so that your rewards line up with your spending habits.
Additionally, a number of flat rate cash back cards can come close to or even beat the PayPal Extras Mastercards rewards rate. The Citi® Double Cash Card, for example, offers up to 2% cash back on all purchases .
See related:Best credit cards for online shopping
Recommended Reading: Td Prepaid Visa Card
Paypal Business Debit Mastercard
In addition to transferring funds to your bank account, you can manage your earnings using PayPal’s Business Debit Mastercard. If you qualify, you can use this debit card to make purchases at any store using your PayPal funds, just as you would with any other debit card. It comes with perks like 1% cash back on certain purchases and the ability to immediately withdraw cash from approved ATMs. There’s no annual fee for this business debit card.
What Do Consumers Need To Be Wary Of
If you are considering applying for a PayPal Rewards Card, there are some things that you may wish to keep in mind, including:
- If the cards initial 0% balance transfer rate is appealing, bear in mind that this offer only lasts for 20 months, after which the balance transfer rate jumps to a relatively high 21.74%, using rates and timeframes applicable at the time of writing. If you are paying off a balance transfer and are unable to do it in 20 months or the time thats agreed with a provider for a particular balance transfer credit card, you may find that the interest rate is higher than on your original credit card. MoneySmart advises consumers to be realistic about what they can afford to pay off when contemplating a balance transfer to a new credit card.
- It is always important to try to pay your credit card statement on time. The PayPal Rewards Card comes with a $30 late payment fee, so you will need to make sure you have made your required repayment each statement period to avoid this.
- There is a 3.4% foreign exchange margin on all international purchases for this card at the time of writing. This rate is particularly important if you are a frequent online shopper making purchases from overseas.
You May Like: Best Buy Capital One
The Basics Of Credit Card Fraud
In the world of consumer credit fraud protection, there are two broad categories of fraud: “card present” and “card not present.” The first means that a physical card was stolen and used by a human being. The latter means the information was stolen and used. And that, increasingly, means it was used to make transactions on the web quickly, before the theft can be detected.
The companies that issue credit cards have the most incentive to prevent both types of fraud. That’s because your liability is limited to $50 under U.S. law, regardless of how much is charged. That said, there are other big downsides for the customer in credit card security breaches, including some serious inconvenience and possible damage.
Why You Can Trust Bankrate
At Bankrate, we have a mission to demystify the credit cards industry regardless or where you are in your journey and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to:
- Meet you wherever you are in your credit card journey to guide your information search and help you understand your options.
- Consistently provide up-to-date, reliable market information so you\’re well-equipped to make confident decisions.
- Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you.
At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next.
Recommended Reading: Prequalify For Sears Credit Card
Use Paypal Credit And Any Kind Of Credit Wisely
The biggest advantage to PayPals credit solution may be its biggest potential pitfall. Because its so easy to charge purchases online to your account, you need to develop smart, responsible credit usage habits before applying.
Consider these questions:
- Do you tend to overspend when you shop online?
- Are you currently struggling to make payments on bills or balances?
- Do you prefer to earn rewards when you shop?
If you answered yes, stop and do not pass go. PayPal Credit is useful, but it may not be right for you.
Focus on getting your finances under control first and building smart credit habits.
On the other hand, if you answer yes to the following questions …
- Do you make all your current payments for bills and money owed in full and on time?
- Are you free from consumer debt?
- Do you already check your monthly statements, bills, and financial information on a regular basis to ensure accuracy ?
- Do you currently have and maintain a budget?
then you may want to give PayPal Credit a try to make your online shopping experience a little smoother .
Just treat it like you would any credit card: charge only what you can afford to repay, always review your statements, and pay your balance off on time each month.
Ask a Question
Paypal Cashback Mastercard Review: How To Get The Most Out Of It
The PayPal Cashback Mastercard® is a great option for frequent PayPal users looking to earn a high cashback flat rate on all purchases.
Advertiser Disclosure: ValuePenguin is an advertising-supported comparison service which receives compensation from some of the financial providers whose offers appear on our site. This compensation from our advertising partners may impact how and where products appear on our site . To provide more complete comparisons, the site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.
Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
Citi is an advertising partner
- Earning rate: Get 2% cash back every day, every purchase, every time you use your card.
- Annual fee: $0
- 19.99%, 23.99% or 26.99% variable
- Redeeming cash back: Cash rewards never expire, redeem rewards to your PayPal balance no minimum required
- Other features: Identity theft protection, contactless payment, microchip technology
Read Also: Ultamate Rewards Credit Card Login