6 Great Places You Can Use Your Interest-Free PayPal Credit
I can't believe I regretted getting it, at first.
I discovered PayPal Credit while hunting for a rooftop tent in 2021. A personal line of credit with six months of zero interest payment sounded amazing. But, when I applied for the account, PayPal approved me for much less than I needed for the tent.
Great! I thought. Now, I'm stuck with an account I have no other use for, and it can't even pay for what I wanted. A year went by before I found that several of the stores I used actually accept PayPal Credit.
What Is PayPal Credit?
PayPal Credit is a line of credit you can use anywhere PayPal is accepted. The account is linked to your PayPal account but functions separately. When accepted, you can use it at checkout just like any other credit card and make monthly payments or pay the balance in full.
If you're approved, you'll receive a credit limit and you can usually make purchases right away. The credit limit depends on your creditworthiness, and PayPal will periodically review your account to see if you're eligible for a higher limit.
Why Should You Consider PayPal Credit?
The main appeal of PayPal credit is that you can make big purchases and pay no interest for six months. If you pay off the balance during that time, you pay no interest at all. This applies automatically to all purchases over $99.
Unlike some creditors, PayPal is also nice enough to tell you how much to pay to avoid interest. You can also track exactly what purchases you owe balances on and precisely when the six months no-interest offer expires for each one.
That's a real game changer. None of my credit cards allow me to do that.
Who Accepts PayPal Credit?
PayPal is an excellent tool to have in your money management kit, but there is one downside. You really need to look hard to find companies accepting PayPal Credit as a payment option. The good news is that if they accept PayPal, they will take PayPal Credit too. These are the top five stores I've been using mine at so far.
PayPal and eBay work hand in hand, so it should come as no surprise that you can use PayPal Credit there. Amazon is King of the online stores, but don't sleep on eBay. I've made some pretty good purchases on the platform over the years.
The most expensive item I've bought on there is my inflatable hot tub (affiliate link). It cost me $700, and I had the option to pay it off with six months of no interest. There were also several low-interest payment options that stretched the payment out much longer.
During the early stages of the pandemic, price gouging was rampant on both Amazon and PayPal. Both companies also struggled to keep up with the influx of people who now wanted to order things online. That forced many of us to turn to Wal-Mart.
I have checked Wal-Mart before making all online purchases, including that hot tub! If you're struggling to pay for groceries and need a cushion, you could potentially spread out several $99+ grocery bills. While not ideal, it's better than getting a payday loan or racking up credit card debt.
3. Best Buy
One item that saw some serious price gouging during the pandemic was the Nintendo Switch. The price dropped recently, but most outlets are pushing the more expensive OLED version. So, I went to Best Buy and was pleasantly surprised to find the original version and discover that I could check out with PayPal Credit.
This was a smart move. Most people turn to Best Buy for tech devices and appliances. These are not small purchases, so six months of no interest is a serious gamechanger.
4. Home Depot
Let me start by saying that Home Depot has consumer credit cards that also give you interest-free payments over a specific amount and for a certain period. They have changed their offer several times, so you'll need to check the current threshold and time limit.
That said, it's interesting that they would allow a credit competitor into the mix by letting us use PayPal Credit at checkout. Home Depot is another store people tend to spend hundreds or thousands of dollars at, so adding PayPal was an excellent idea.
5. Mint Mobile
I started using Mint Mobile in 2020, shortly after I began my full-time travel journey. The company is a reseller of T-Mobile services. This means it uses T-Mobile towers but charges an insanely low amount. Another intriguing thing about the company is that you can "bulk-buy" service. I just renewed my unlimited plan for six months at $210.
Mint Mobile might not qualify as a mainstream store for some people, but they are a popular reseller on the market. And, for a year, this was the only use I could think of for my PayPal Credit. So, despite paying for six months upfront at a lower rate, I could still take six months to pay it off at no interest. You can join here (affiliate link)!
I haven't used Chewy in ages, but I do recommend them. When I lived a more stationary life, I bought my cat food in bulk. Now that I live in a much smaller, mobile space, it's just not a feasible option for me.
Chewy does allow you to use PayPal at checkout. You could get the same Mint Mobile benefit I did, i.e., buying six months of food at a lower price but still getting six months to pay it off with no interest. I'm sure Fido and Mister Whiskers would love that!
When I first got PayPal Credit, it felt like an absolute waste of a credit ding. But, it's been paying off over the years. I have not paid a dime in interest on any of my purchases. Are there any similar personal lines of credit you recommend? Tell me about them in the comments!
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