What credit score do you need for PayPal credit?
PayPal doesn’t make public what score is needed for their Credit program. Based on user reports across the internet, the lowest scores approved are 600 FICO.
PayPal uses Equifax and Experian FICOs, specifically. Protip: ensure your revolving utilization is below 30% when you apply.
You should always consider improving your credit score first before applying. If you are denied, you will get hit by a hard inquiry that will lower your score for 12 months.
Working with a professional to improve your scores is always worth it in the long run.
In this article on what credit score do you need for PayPal credit, we will be discussing all you need to know about the PayPal credit card, how to apply and how to get pre-approved.
Keep reading this article to know more about what credit score you need for PayPal credit.
What is PayPal Credit?
Let’s start off with this article on what credit score do you need for PayPal credit by having a brief discussion of what PayPal credit is.
Although PayPal was founded back in 1998, PayPal Credit only launched in 2016. PayPal Credit acts similar to a credit card: you can use it to buy any consumer item that accepts PayPal.
If the item is under £99, you have 6 months to pay for it without having to pay interest. If it’s over £99, that period is reduced to 4 months. After that, you have to pay a pretty high APR of 19.9%.
Although there is no annual fee, you will need to be approved when you apply – and that’s where your credit score will take a hit.
Unlike comparison websites that do “soft checks”, PayPal does a full “hard check”, which leaves a footprint on your credit report.
How does PayPal Credit work?
PayPal Credit is straightforward to sign up to and start using (which is what can make it so enticing).
When you’re ready to purchase your pair of shoes/online course/exercise bike, you’ll see the familiar PayPal button which means you can purchase it using your PayPal balance.
Once you click on that button, the PayPal Credit option will pop up. It’ll ask you to complete an application, and if you’re approved you’ll receive the credit that same day. According to certain sources, you need a credit score of around 700 to get approved.
Submitting that application means you’ll be getting a full credit check, which is what leaves a footprint on your credit report.
Having said that, the one main advantage with PayPal is that you’ll only have to get a credit check done once: once you’re approved, you’ll be able to shop freely anywhere that accepts PayPal. That’s why PayPal credit users reportedly spend 30% more than others.
In order to apply to PayPal Credit, you’ll need to meet their requirements:
- Be over 18 and a UK resident
- Not having gone bankrupt
- Have an annual income of over £7,500
- A reasonably good credit history
- As you see, it works like a credit card. Once you take credit, you’ll need to pay off your balance over a specific time period. For the first 4 or 6 months, you won’t have to pay interest.
But once those months are up, you’ll have to start making minimum payments and paying an interest of 19.9%.
The minimum payments are either £5 or 2% of the outstanding balance. And if you don’t pay on time, you’re then hit with £12 in late payment fees.
How To Get Approved For PayPal Credit
- Getting approved for PayPal credit means meeting their minimum requirements and applying online. A strong credit score increases your chances of approval.
- If your credit needs help, Credit Glory can help you improve your score and increase your chances of approval.
How To Apply For PayPal Credit
- If you have an existing PayPal account, you can apply online.
- How To Get Pre-Approval For A PayPal Mastercard Credit Card
- Unfortunately, due to the requirements to get a PayPal card, they don’t offer pre-approval.
How To Pre-Qualify For PayPal Credit
To qualify for a PayPal credit card, you need to have an existing PayPal account and be a US citizen over 18 years old.
PayPal Bill Me Later Qualification Requirements
To apply, you need to provide your date of birth, the last 4 digits of your SSN, and have a credit score of at least 650.
PayPal Credit Qualification Requirements
Requirements for the PayPal MasterCard credit card include a credit score above 650, a good debt-to-income ratio, and a good utilization ratio.
PayPal MasterCard Credit Card Qualification Requirements (Including Minimum Credit Score)
The acceptance rate for a PayPal MasterCard credit card depends on your credit score. If your score is above 700 you have good approval odds. For scores below 700, approval can be difficult.
How To Get Pre-Approval For A PayPal Credit Card
PayPal doesn’t offer pre-approval. However, having a PayPal account, being a US citizen over 18, and having a credit score between 650-700 increase your approval chance. If your credit needs a boost, Credit Glory can help, increasing your chances for approval.
Why PayPal Credit May Have Declined
PayPal credit requires a minimum credit score of about 700 for approval. If your application was denied, it’s probably because your score is below 700. Credit Glory can help you boost your score, increasing your chances of getting approved.
Get Your Credit Score Improved Professionally
In some cases, we recommend speaking with a Credit Repair professional to analyze your credit report. It’s so much less stress, hassle, and time to let professionals identify the reasons for your score drop.
If you’re looking for a reputable company to increase your credit score, we recommend Credit Glory. Call them on (833) 461-0151 or set up a consultation with them. They also happen to have incredible customer service.
Credit Glory is a credit repair company that helps everyday Americans remove inaccurate, incomplete, unverifiable, unauthorized, or fraudulent negative items from their credit report.
Their primary goal is empowering consumers with the opportunity and knowledge to reach their financial dreams in 2020 and beyond.
Does PayPal Credit Affect Credit Score?
The first time I ever found out about credit scores, I was dumbfounded: my ability to take out a credit mostly relies on this number?
Applying for PayPal Credit affects your credit score. That’s because every time you undergo a “hard credit check”, your credit score takes a hit.
PayPal is partnered with a bank called Synchrony Bank, which will review your application and then complete an audit.
This hard check will appear on your credit report for 2 years and could lower your credit score by a few points. Since 2019, PayPal Credit now reports information to credit bureaus.
This means that if you miss a payment or are late, it might also get published on your credit report, further lowering your score.
Does this happen even if I get approved? Yes, even if you are approved for PayPal Credit, you will be going through a full hard check. The more loan products you apply for, the more “footprints” this leaves on your report and the more your score may decrease.
This will make it harder to get approved for future products such as a mortgage, credit or loans. Although one hard check won’t hurt your credit score too much, applying for several loans in a short period of time could reduce it by quite a lot.
Steps to Effectively Build Your Credit Score
If you are looking for ways to build your credit score, then your best bet is to stay away from PayPal Credit and use a different product.
If you desperately need to take out credit, consider taking out a credit card that is specifically made to build your credit score.
Sign up to the electoral roll
The electoral roll is the registry of voters. Being on the electoral roll will allow you to vote in elections, and lets the credit bureaus (those who calculate your credit score) know where you are living.
It also serves as an identity verification step that helps combat identity fraud whenever you sign up for a credit product.
You can sign up to the electoral roll on Gov.uk and it just takes a few minutes.
Use a credit card made for credit building
Think about it: if you’ve never had a credit card before, how will mortgage lenders or credit companies know how you manage your debt? They don’t. That’s why one of the best ways of building a credit score is signing up for a credit card and building a credit history.
But not any credit card, there are some credit cards that are specifically designed for people with “short credit histories” which will make it easy and safe to learn about managing debt.
The credit limit is lower, and the APR is a lot higher – so make sure you set up a direct debit payment then it’s all set up automatically and you don’t have to worry about missing any payments.
Using Cards like Aqua might be a good way to start building a credit history. If you need help deciding whether credit builder cards are right for you, check out our article on how Aqua can help your credit history.
Reduce the number of applications
Each time you apply for credit, you are leaving a footprint on your credit report. That’s why you want to try reducing the number of loans you apply for as much as possible. If your application gets denied, this can lower your credit score even more.
If you already have a line of credit open or even a credit card, then it’s best to keep using that one rather than applying for something like PayPal Credit. If you can, try to find out the likelihood of you getting approved before applying.
There are many free credit score tools available such as ClearScore that can help you find out the likelihood of your application being accepted.
Correct any errors on your credit report
Finally, in this article on what credit score do you need for PayPal credit, let’s discuss how to correct any errors on your credit card.
The three main credit bureaus in the UK (TransUnion, Equifax, Experian) will have a lot of data and information on you, and they will be responsible for whether you’ll get approved or not for a loan.
That’s why if the information they have is incorrect, your application is more likely to be denied and your credit score will decrease.
When you get a full report on your credit history, make sure to check every line for any errors. If you find any, get in contact with the bureau to make sure it’s fixed. It’s worth comparing your score with a couple of the bureaus to double-check.
PayPal Credit does affect your credit score, which is why it’s important to be mindful about applying. If you need to take out credit, consider using a credit card or credit line that you have already applied for.
Use free credit scoring tools to see how likely it is for you to get accepted before actually applying. You’re the one who has worked hard to take care of your credit score, so don’t let PayPal ruin that for you.
In conclusion, in this article, we have Explained all we know about the PayPal credit score to help answer whatever questions you have on what credit score do you need for PayPal credit, hope 5his helps you.