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Can You Pay PayPal Credit with a Credit Card?
May 14, 2025
Quick Answer
You cannot use a credit card to pay your PayPal Credit bill; instead, you must use a linked bank account or your PayPal balance.
Should You Pay Paypal Credit With A Credit Card?
Consider the following pros and cons before making your decision.
Benefits
Earn Rewards: You can earn credit card rewards like points, miles, or cash back on the payment.
Meet Spending Requirements: The payment can help you meet the minimum spend for a new credit card's sign-up bonus.
Debt Consolidation: You can combine your PayPal Credit balance with other debts onto a single credit card.
Introductory APR: Using a card with a 0% introductory APR could temporarily pause interest charges on the balance.
Costs
Indirect Payment Fees: PayPal does not allow direct payments to a PayPal Credit account with a credit card, requiring a third-party bill pay service that charges processing fees.
Cash Advance Charges: Taking a cash advance from your credit card to get the funds incurs high upfront fees and immediate, high-interest charges.
Higher Interest Rates: Your credit card's standard interest rate may be higher than your PayPal Credit rate, increasing your borrowing cost.
Debt Shifting: You are not eliminating debt but transferring it to a different lender, potentially with less favorable terms.
How to Pay Paypal Credit With A Credit Card
Looking to pay off your PayPal Credit balance with a credit card? While direct payments aren't possible, a balance transfer is an effective strategy. Here’s some general guidance.
Review Your Terms: Before you begin, check your PayPal Credit agreement and the terms of your potential new credit card. Pay close attention to balance transfer fees and any promotional APR periods.
Choose the Right Card: Select a credit card with favorable terms, such as a low or 0% introductory APR on balance transfers. Using a card exploration tool can help you compare thousands of options to find the best fit.
Initiate the Balance Transfer: Contact your new credit card issuer to request a balance transfer from your PayPal Credit account. You will likely need your PayPal Credit account number and the payment address.
Confirm and Monitor: It can take several days or even weeks for a balance transfer to complete. Continue to make minimum payments on your PayPal Credit account until you confirm the transfer is successful to avoid late fees.
Create a Repayment Plan: Once the balance is on your new card, create a strategy to pay it off, preferably before the introductory APR period ends to avoid interest charges.
Impact On Your Credit Score
While paying your PayPal Credit bill with a credit card is possible, it's important to understand the potential consequences for your credit score. Here are a few key factors to consider before you do.
- Credit Utilization Ratio. This action increases the balance on your credit card, which can raise your credit utilization ratio. A higher ratio can negatively affect your credit score, as it suggests greater financial risk to lenders.
- Debt Transfer. You are essentially moving debt from one account to another, not eliminating it. This transfer doesn't lower your total debt amount, a significant factor that credit scoring models evaluate.
- Potential for More Debt. This payment method can create a cycle of debt if not managed carefully. You could accrue high interest on the credit card balance while continuing to make new purchases on PayPal Credit.
Alternative Ways To Pay Paypal Credit
Pay from Your Bank Account
One of the most direct ways to settle your PayPal Credit bill is by using a linked bank account. By connecting your checking or savings account, you can authorize payments directly, bypassing the need for a credit card. This method ensures funds are drawn straight from your bank, offering a simple and effective way to manage your payments without incurring additional credit card-related fees or interest.
Use Your PayPal Balance
Another convenient option is to use your existing PayPal balance. If you receive payments or maintain funds within your PayPal account, you can apply this balance directly toward your credit statement. This approach is particularly efficient as it utilizes money you already have on the platform, eliminating the need for external transfers from a bank or another card and simplifying your financial management.
Choose the Right Card to Pay Paypal Credit
Paying off your PayPal Credit balance is a smart financial move, and the right credit card can make all the difference. Whether you're looking for a 0% introductory APR or a card with generous balance transfer options, sifting through the options can be overwhelming. Kudos’ Explore Tool simplifies the process, letting you compare nearly 3,000 cards to find the perfect match for your specific needs. The AI-powered tool offers personalized recommendations, ensuring you can confidently choose a card to tackle that balance and improve your financial standing.
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Frequently Asked Questions
Why can't I directly pay a PayPal Credit bill with a credit card?
PayPal avoids processing fees, and credit card network rules generally prohibit paying one line of credit with another.
Will my card issuer treat an indirect payment as a cash advance?
Yes, most credit card issuers will classify indirect payments as a cash advance, which usually carries higher fees and interest.
Can I earn credit card rewards for paying my PayPal Credit bill?
It is highly unlikely, as payments are typically treated as cash advances, which are not eligible for rewards points.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
