Snappy Drill Bit Guide No.10

PayPal Credit is like a credit card, without the plastic. It's a credit limit that sits alongside your PayPal account which you can use for your online purchases.

A 0% interest offer you can use again and again: PayPal Credit's 0% interest offer is better than just an introductory offer. Every time you spend £99 or more, you will automatically get 0% interest for 4 months on that purchase.

Plus, you can spread the cost of purchases under £99 at the standard variable rate of interest, currently 23.9% p.a.

*The minimum payment due still applies to 0% offer balances. Any remaining balance due after the 4-month promotional period or any transactions under £99 will be charged interest at 23.9% p.a. (variable). In order to maintain the 0% offer, you need to keep up monthly repayments and stay within your credit limit.

Applying for PayPal Credit is easy. Just click on the PayPal Credit button on our checkout page.

The application form takes minutes to complete. PayPal will then run a credit check and, if approved, you'll have a credit limit linked to your PayPal account as soon as you accept your Credit Agreement.

You can use the credit limit granted to pay for today's purchase and future purchases at thousands of online stores where PayPal is accepted, up to your credit limit.

If you already have PayPal Credit you do not need to reapply, just select PayPal Credit as your payment option at checkout.

Yes, however if you don't have a PayPal account, you can create one as part of the PayPal Credit application.

Signing up for a PayPal account is free and easy; all you need to do is provide your email address, create a password and accept PayPal's User Agreement.

If you have been declined for PayPal Credit, PayPal will send you more information about why your application was unsuccessful. You can still use PayPal to complete your purchase.

Just return your purchase as normal and the money will be refunded to your PayPal Credit account.

The Representative Example below shows the typical costs of using a PayPal Credit limit, without using promotional offers:

• Purchase rate 23.9% p.a. (variable)
• Representative 23.9% APR (variable)
• Assumed Credit Limit £1,200

You can make a one-off repayment from your bank account, debit card or PayPal balance at any time, either online or by calling PayPal Customer Service. Alternatively you can set up monthly Direct Debit payments from a bank account you've linked to your PayPal account. To set up Direct Debit payments, log in to your PayPal account and follow the instructions on the Make a Payment page.

Payments will reflect on your PayPal Credit account the same day you make them. It may take a few days for your available balance to update and for the payment to show on your bank statement.