Can You Withdraw Money From PayPal Credit?

Can You Withdraw Money From PayPal Credit?

PayPal Credit is a line of credit issued by Synchrony Bank. It is similar to a credit card in that it allows users to pay for online purchases in installments as opposed to paying upfront.

However, if you’re new to using paypal credit you might be curious to know: Can you withdraw money from PayPal credit?

In this article, I will cover some key information about PayPal credit, and whether you can withdraw money from it.

Keep reading to find out more.

Can You Withdraw Money From PayPal Credit
What’s the difference between PayPal and PayPal credit?

PayPal Credit is a service offered under the PayPal brand and is a line of credit issued by Synchrony Bank. In order to use PayPal Credit, you will have to set up a PayPal account.

It’s essentially a subsidiary of PayPal, as while you can use PayPal without using PayPal Credit, the same is not true if you were to reverse them.

Can you withdraw money from PayPal Credit?

The short answer to this question is no – you cannot withdraw money directly from your PayPal Credit account.

However, you can get money from PayPal Credit through sending money to a person of trust’s PayPal account and have them send it back to you straight away. 

That being said, this is a process that comes with transaction fees, cash advance fees, and high interest rates. You cannot send the money to yourself, so you will need to ensure that the person is trustworthy to deliver the money back to you.

How do you apply for PayPal Credit?

It’s relatively simple to apply for PayPal Credit if you’re already a PayPal user. If you don’t have a PayPal account already, then you will be prompted to create one when applying for PayPal Credit.

The application is relatively simple, and will ask you to supply your date of birth, your income after taxes, and the last 4 digits of your Social Security number.

However, it’s important to know that PayPal will do a hard credit pull, which might affect your credit score. Generally speaking, you should have your approval very soon after.

Is PayPal Credit the same as a credit card?

While PayPal Credit is the same as a credit card in mostly all aspects, it is not exactly the same in that it is not a physical card that you carry around in your purse or wallet.

PayPal Credit is a revolving line of credit for any transaction on which you could use your PayPal account.

Benefits of using PayPal Credit

There are multiple benefits of using PayPay Credit, which include but are not limited to:

Can help you build credit –  PayPal Credit reports your payment activity to the big three credit bureaus (Equifax, Experian, and TransUnion) – allowing you to build your credit score provided that all payments are made in a timely manner.

Quick and convenient to use – You can start using PayPal Credit as soon as you’re approved, which is usually in a matter of seconds. This is much quicker than a credit card that you would have to wait for in the mail. 

Can be used anywhere PayPal is accepted – You can use PayPal Credit anywhere that it accepts PayPal, including a plethora of websites and in various stores, too.

Negatives of using PayPal Credit

However, there are also negatives of using PayPal Credit that you should be aware of before signing up to it.

Hard credit inquiry – The hard credit pull during the application process will likely affect your score by several points. While this is only an initial hit, it’s important to be aware of before signing up for PayPal Credit as this might come as a surprise to you.

Low credit limit – PayPal Credit limits are similar or even lower than the majority of credit card limits. Most PayPal Credit users’ limits typically range from $250 to a couple thousand dollars.

Bearing this in mind, it’s important to be realistic about the kind of payments you’ll be able to make with your PayPal Credit account, and never commit to buying something way out of your budget.

Can negatively affect your credit score – While this is also a positive, you should be aware that your PayPal Credit account could negatively impact your credit score if you don’t stick to making payments in a timely fashion.

While credit is hugely important when it comes to being granted mortgages and loans, it’s important to note that having a credit account holds you accountable for making payments on time.

As PayPal Credit reports your payment activity to the three big credit bureaus, this can negatively impact your credit score.

Risk of overspending – The risk you should be aware of with PayPal Credit, and any credit card for that matter, is the risk of overspending.

You might be tempted to spend more than you usually would with PayPal Credit than you would with a standard PayPal account, and it’s important to be aware of this.

If you feel worried about this and know that you have a tendency to overspend, you should only use your PayPal Credit account for purchases you know you’ll be able to pay back in good time.

It’s clear that there are both positives and negatives of signing up for a PayPal Credit account.

You should always do your research before signing up for any line of credit, and always make sure that you understand the implications of not being able to make your payments on time. 

In summary 

You cannot withdraw money from PayPal Credit directly. The only option to take is to send the money to another person’s PayPal account and get them to send it back to you. Following this, you can transfer the money from your PayPal balance to your bank. 

Bear in mind that you should always choose someone that you trust for this process. It’s also important to note that PayPal will charge cash advance fees, transaction fees, and interest anytime you carry out this process.

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