What are the cash back rates for the PayPal Cashback Mastercard?

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The PayPal Cashback Mastercard® offers a straightforward and generous cash back structure. Here's what you can expect:

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Reward Structure

• Earn 3% cash back on PayPal purchases
• Earn unlimited 2% cash back on all other purchases

This means you'll earn an unlimited 3% cash back when you check out with PayPal or make purchases through the PayPal app and PayPal.com. For all other transactions, you earns an unlimited 2% cash back, which is a competitive rate compared to many other cash back credit cards on the market that only offer 1.5% back on purchases.

Is there an annual fee for the PayPal Cashback Mastercard?

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One of the most attractive features of the PayPal Cashback Mastercard® is that it comes with no annual fee. This means you can enjoy the card's benefits and earn cash back without worrying about offsetting a yearly charge. The absence of an annual fee makes this card an excellent choice for those who want to earn cash rewards without incurring additional costs.

How does the PayPal Cashback Mastercard® compare to other cash back cards?

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When comparing the PayPal Cashback Mastercard® to other cash back credit cards, it stands out for several reasons:

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Key Advantages

1. Higher base rate: Many credit cards offer 1.5% on all purchases, while this card offers 2%.
2. No rotating categories: Unlike some cards that require you to track and activate bonus categories, the PayPal Cashback Mastercard® offers a consistent rewards structure.
3. No caps on earnings: There's no limit to how much cash back you can earn, unlike some cards that cap rewards at certain spending thresholds.

However, it's worth noting that some cards may offer higher rates in specific categories or provide welcome bonuses, which the PayPal Cashback Mastercard® does not currently offer. For example, the Blue Cash Preferred® Card from American Express offers higher cash back rates in certain categories but comes with an annual fee.

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What credit score do you need for the PayPal Credit Card?

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While PayPal doesn't publicly disclose a specific credit score requirement, it's generally recommended that applicants have a good to excellent credit score to increase their chances of approval. This typically means a FICO score of 670 or higher. However, keep in mind that credit score is just one factor in the approval decision, and PayPal may also consider other aspects of your financial profile, such as your credit limit on other cards.

How can you redeem your cash back rewards with the PayPal Credit Card?

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Redeeming your cash back rewards with the PayPal Cashback Mastercard® is incredibly simple. The cash back you earn is automatically credited to your PayPal balance, typically within 24 hours of earning. From there, you have several options:

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Redemption Options

• Transfer the funds to your linked bank account or debit card
• Use the cash back for PayPal purchases
• Send money to friends or family through PayPal

This flexibility allows you to use your rewards in whatever way best suits your needs, without having to navigate complex redemption processes.

Are there any additional benefits to using the PayPal Cashback Mastercard?

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Beyond its cash back rewards, the PayPal Cashback Mastercard® comes with several additional benefits. To get all the benefits, refer to the Mastercard Guide to Benefits for details on what's offered:

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Card Benefits

• Benefits of Mastercard like ID Theft Protection™
• Zero Liability Protection for unauthorized charges
• Access to Mastercard Global Service™ for emergency assistance
• No foreign transaction fees for U.S. cardholders, making it a good option for international travel
• Purchase protection on eligible items

These features add value to the card beyond its rewards program, providing cardholders with peace of mind and additional protections.

What are the potential drawbacks of the PayPal Cashback Mastercard?

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While the PayPal Cashback Mastercard® offers many benefits, it's important to consider potential drawbacks:

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Considerations

• No welcome bonus: Unlike some competitors, this card doesn't offer a sign-up bonus.
• High APR on purchases: The card's APR may be higher than some other rewards cards, so it's crucial to pay your bill in full each month to avoid interest charges.
• Limited benefits: Some premium cash back cards offer more extensive perks, such as travel insurance or extended warranties.
• No intro APR offer on purchases or balance transfers

Consider these factors when deciding if this card aligns with your financial goals and spending habits.

How do you apply for the PayPal Cashback Mastercard?

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Applying for the PayPal Cashback Mastercard® is a straightforward process:

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Application Steps

1. Log in to your PayPal account or create one if you don't have it.
2. Navigate to the PayPal Cashback Mastercard® page.
3. Click "Apply Now" and follow the prompts to complete the application.
4. Provide necessary personal and financial information.
5. Submit your application and wait for a decision, which is often instant.
6. OR, sign-up with one click through Kudos, a free AI-powered smart wallet that helps you earn more credit card rewards and benefits when you shop online.

If approved, you can start using your virtual card immediately for online purchases, while your physical card will typically arrive within 7-10 business days. You may even get a temporary credit line to start making PayPal purchases right away.

Is the PayPal Cashback Mastercard right for you?

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The PayPal Cashback Mastercard® could be an excellent choice if:

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Ideal for:

• You frequently use PayPal for online shopping
• You want a simple, flat-rate cash back program without rotating categories to track
• You're looking for a no-annual-fee card with competitive rewards
• You prefer cash back that's easily redeemable through PayPal
• You want to earn 3% cash back on PayPal purchases and 2% on all other purchases

However, if you're seeking a card with a welcome bonus, lower APR, or more premium benefits, you might want to explore other options in the cash back credit card market.

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Key takeaways:

• Earn 3% cash back on PayPal purchases and 2% on all other purchases
• No annual fee
• Cash back automatically credited to your PayPal balance
• Good to excellent credit score recommended for approval
• No foreign transaction fees for U.S. cardholders
• Simple redemption process through PayPal
• No welcome bonus or intro APR offer
• Best for frequent PayPal users and those seeking a straightforward rewards structure

By carefully considering your spending habits and financial goals, you can determine whether the PayPal Cashback Mastercard® is the right addition to your wallet. Remember to always use credit responsibly and pay your balance in full each month to maximize the benefits of any rewards credit card.