5 Questions to Ask Before Getting a PayPal Credit Card
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In the first quarter of 2016, there were over 184 million active PayPal users in the world. It appears that people don’t realize — or simply don’t care — that PayPal isn’t the safest online payment processor to use Making Online Payments - 5 PayPal Alternatives to Consider Making Online Payments - 5 PayPal Alternatives to Consider Is PayPal the best and most secure method of making online payments? We look at 5 PayPal alternatives that you should consider. Read More .

Maybe it’s because setting up a PayPal account is super easy How To Set Up a Paypal Account To Pay For Anything How To Set Up a Paypal Account To Pay For Anything I have to admit that Paypal has become my own vehicle of choice for conducting business online. It has become the most common vehicle that clients prefer for sending in payments for work. This makes... Read More , whether you intend to use it for personal reasons or you plan on running a business through PayPal How To Set Up A PayPal Account For Your Business How To Set Up A PayPal Account For Your Business If you run a small business or are thinking of taking the plunge into self-employment then there’s a good chance you will need a quick and easy method of invoicing and charging your customers or... Read More . A lot of times, convenience and availability win out.

And that’s true of the PayPal Credit Card as well. Despite the fact that it has mixed reviews, a lot of people are using it. Should you start using one too? Here’s what you need to know to make an informed decision.

How the PayPal Credit Card Works

PayPal actually provides three different forms of credit:

  • PayPal Credit (formerly called Bill Me Later)
  • PayPal Extras MasterCard
  • PayPal Smart Connect Card

As we learned in our overview of PayPal’s consumer services An Introductory Guide to PayPal Accounts & Services An Introductory Guide to PayPal Accounts & Services PayPal offers a lot of services that you might not be aware of -- here's a guide to understanding some of the lesser-known options. Read More , PayPal Credit isn’t actually a credit card. It’s simply a credit line that’s part of your online account What Is PayPal Credit and Where Can You Spend It? What Is PayPal Credit and Where Can You Spend It? PayPal has started to branch out and offer new services. One such service is the recently rebranded "PayPal Credit". What exactly is it, and it is worth using? Read More and comes with some, but not many, benefits. The Smart Connect Card is similar, except you get a physical card.

When people talk about PayPal’s credit card, 99% of the time they’re referring to the PayPal Extras MasterCard, which is an actual credit card provided by Synchrony Bank. This is what we’ll be focusing on for the remainder of this article.

Here’s a quick rundown of what you get with a PayPal Extras MasterCard:

  • There is no annual fee for this card.
  • 3 points per $1 spent at gas stations and restaurants.
  • 2 points per $1 spent at PayPal and eBay.
  • 1 point per $1 spent anywhere else, online or offline.
  • Redeem points for rewards. (More on that below.)
  • MasterCard’s built-in protections against various inconveniences, including identity theft, fraudulent purchases, and price drops within 60 days.

How to Get a PayPal Credit Card

In order to get a PayPal credit card, you must voluntarily apply for one, be at least 18 years of age, and live within the United States. Application approval is subject to credit approval by Synchrony Bank.

Depending on your credit score and history, Synchrony Bank will determine whether you get the PayPal Extras MasterCard (20.24% APR) or the Smart Connect Card (27.24% APR, no rewards program). Even if you apply specifically for the Extras MasterCard, there’s no guarantee you’ll get it.

However, after using the Smart Connect Card responsibly for a while, PayPal may decide to upgrade your account to an PayPal Extras MasterCard. This could take between 12 and 18 months, depending on your credit-worthiness.

Should You Get a PayPal Credit Card?

By now, the PayPal Extras MasterCard probably seems like an awesome deal. There aren’t any fees to using it, you get reward points no matter what you buy, and you get the same level of protection as you’d get from any other MasterCard credit card.

But should you apply for one? There are valid reasons to do so, of course, but there are just as many reasons why you shouldn’t. Depending on your answers to these five questions, you’ll know whether getting one is in your best interests or not.

1. Do You Already Have Consumer Debt?

If you’re already swimming in debt How to Get Rich: The Fastest Way to Get Out of Debt How to Get Rich: The Fastest Way to Get Out of Debt Imagine being debt free. No overdrawn balances or unpaid bills. There is a foolproof way of getting yourself out of debt. It starts with a plan and some discipline. Let's visit the other ingredients. Read More , grabbing another credit card is one of the last things you should do. Even if the only debt you have is so-called “good debt” — such as a mortgage loan or student loans — you should still be wary about owing more.

It’s easy to tell yourself that you’ll be responsible with a new credit card, but the only way to know for sure is by looking at your current credit situation Simply Frugal: How To Learn Personal Finance The Easy Way Simply Frugal: How To Learn Personal Finance The Easy Way Do you fret over bills and debt on a regular basis? Do you feel lost when others speak using financial lingo? Here's the good news: it's never too late to learn about money. Read More . Are you being responsible with your current debt? If not, you probably won’t be with any new debt.


In 2014, PayPal’s VP of Credit noted that “[consumer spending] goes up 30% after a customer adopts a PayPal credit vehicle,” citing previous studies at the company, and that was true whether the vehicle was PayPal Credit or a PayPal credit card.

That’s not a situation you want to put yourself in.

2. What Is Your Personal Credit Score?

As is true any time you apply for a new line of credit, Synchrony Bank will want to know your credit history before approving or rejecting your application. This means a hard credit inquiry, which will remain on your credit report for two years.

This means that you shouldn’t apply unless you’re fairly confident that you’ll be approved. Getting a hard credit inquiry on your report and not being approved is bad and will leave you in a worse state than before.


Nobody knows the exact criteria, of course, but the general trend seems to be a minimum credit score of 600 for the Extras MasterCard. Note that nothing is guaranteed and you may be rejected for other reasons unrelated to credit score.

Not sure what your credit score is? Find out by using one of these many free tools and websites How to Improve and Monitor Your Credit Score by Using Technology How to Improve and Monitor Your Credit Score by Using Technology Your credit score can have a huge influence on your financial life. We explain how it's calculated and and how you can improve it. Read More .

3. Can You Get a Better Credit Card?

The rewards program for the PayPal Extras MasterCard is pretty good, but there are other credit cards with better rewards programs out there. If you qualify, you might as well shoot for them instead.

The Blue Cash Preferred Card by American Express is one of the most coveted cards for reward freaks. It has a $95 annual fee, but you get 6% cash back at supermarkets, 3% cash back at gas stations and department stores, and 1% everywhere else.


The Discover It Card by Discover is another good one, earning 5% cash back on certain categories that change every three months, including gas stations, restaurants, Amazon, and others. And it has no annual fee.

On the other hand, if you intend to carry a balance from month to month (which you should NOT do if you want to save money 10 Podcasts That'll Help You Save Money & Get Out of Debt 10 Podcasts That'll Help You Save Money & Get Out of Debt There are a lot of money-related podcasts out there, but these 10 are the best for helping you get out of debt and master your money. Read More ), then a low-interest option like the Barclaycard Ring MasterCard might be better, which has under-10% variable APR and no annual fee.

You may decide that the PayPal Extras MasterCard is still best for you. Just make sure you explore what else is out there first. Note that awesome cards like these usually require excellent credit scores!

4. Are the Rewards Appealing to You?

As far as I’m concerned, the only reason to choose a PayPal Extras MasterCard over any other card is if you prefer its rewards program, especially if you shop frequently with PayPal and/or eBay.

Indeed, a lot of people don’t realize that PayPal actually has its own shopping portal and directory where you can find a bunch of deals and offers that you may not find elsewhere. On top of that, you get 2x reward points per $1 spent here (and on eBay).


Obviously, this only matters if you actually care about the stuff you can redeem using your PayPal reward points. Here are some of the more interesting things you can get:

  • At 2,200 points, you can get gift cards for restaurants, gas stations, retail stores, and more.
  • At 3,000 points, you can get direct merchandise of various kinds, including houseware, kitchenware, sports gear, electronics, gadgets, and more.
  • At 6,000 points, you can get a direct cash back reward with money deposited straight into your PayPal balance.
  • At 15,000 points, you can get travel vouchers for hotels, airfare, and even car rentals.

One thing to note is that most credit card reward programs have a point value equivalent to $0.01, but PayPal’s reward points are equivalent to $0.0083.

5. Do You Support PayPal’s Business?

Just because it’s popular and used by millions all over the world doesn’t mean that PayPal is doing things right. Sure, maybe from a business standpoint they are, but how about in terms of ethics and trust?

It’s no secret that thousands of people have been burned by PayPal in one way or another: frozen funds, lost transactions, closed accounts, and poor customer support. Maybe you’ve been okay so far, but it has to make you wonder if you’ll be the next victim.


In a more abstract sense, you have to decide whether you’re willing to do business with PayPal while knowing that they aren’t treating their customers as well as they could be. Do you want your hard-earned money going to a company like that?

Maybe you don’t care, and that’s fine too. This is a personal decision and only you can make it, but for many it’s been bad enough to warrant boycotts against PayPal. Just something to think about.

Is a PayPal Credit Card Worth It?

Personally, I do have a PayPal Debit MasterCard that’s tied to my PayPal balance, but of the two credit cards in my wallet, neither one is a PayPal Extras MasterCard.

Even if I wanted another credit card, which I don’t, I don’t think I’d consider the PayPal Extras MasterCard — but only because there are plenty of better cards available within my credit score range.

When would I consider it? If the only cards available to me were those with annual fees (such as the Capital One QuicksilverOne) or those with weak or no rewards (such as most student-level cards).

And for what it’s worth, I’ve never had an issue with my PayPal accounts How Scammers Target Your PayPal Account & How To Never Fall For It How Scammers Target Your PayPal Account & How To Never Fall For It PayPal is one of the most important accounts you have online. Don’t get me wrong, I’m not a huge PayPal fan, but when it comes to your money, you don’t want to play around. While... Read More .

Did this article help you decide? Is the Paypal Extras MasterCard worth it or not? How have your past experiences with PayPal been? Let us know with a quick comment below!

Image Credits: Debt Scale via Shutterstock, Credit Cards via Shutterstock, PayPal via Shutterstock.

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  1. Rhonda Lea Fries
    August 14, 2016 at 1:09 am

    You really need to fix the comment setup.

    I wrote a post, but the login ate it. I won't bother to rewrite it, but I want you to know that I'm tempted not to post here again.

    • Joel Lee
      August 19, 2016 at 7:55 pm

      Hey Rhonda, it looks like your comment wasn't eaten and did go through. However I do share in your frustrations with our commenting system! We have plans to rework it but I can't say how soon that will be. Thanks for the feedback!

  2. Rhonda Lea Fries
    August 14, 2016 at 1:07 am

    I still have a PayPal account, but I don't use it. If I purchase something from a vendor who uses PayPal, I complete the transaction without logging in.

    Nothing big ever happened, but I did not like the way PayPal handles its customer service (and the posted reports say nothing has changed). The minor events were merely an inconvenience, and the most I ever lost was $4, but I had no sense that PayPal saw me as a person--I was just another login.

    Reading now about the interest rate on the PayPal cards, I would not be tempted even if everything else were okay with PayPal. And while I admit to having a couple of store cards underwritten by Synchrony, it's the last financial institution I would use for credit.

    So, no thanks. Never ever PayPal. So many other, better cards and services exist that I cannot fathom why anyone does business with the company.

  3. chad
    July 28, 2016 at 9:15 pm

    I have a PayPal Master card. Have had only one issue - it can take an eternity to get through to customer service.

    • Joel Lee
      July 29, 2016 at 8:06 pm

      I've never had to deal with PayPal customer service yet but I've heard not-so-great things about it so I believe you. At least the card itself is good! Thanks for sharing, chad.