Find out the information on the credit score needed for PayPal credit and the fees that come with it.

Credit Score Needed For Paypal Credit

Are you wondering about the credit score needed for PayPal credit? If so then the information below will give you an idea.

PayPal Credit is known as a credit line that is specifically built to your account in PayPal. The credit can be used to purchase stuff online, including eBay. As you all know, most online stores today accept PayPal as their payment method. That is why having a PayPal credit is a necessity for most individuals today.

Credit Score Needed for PayPal Credit

The credit score needed for PayPal credit is usually a fair to excellent score. People who have a credit score of 650 get approve by PayPal easily. So if your score falls within these ranges, then you don't have to worry about anything at all. Of course, people who are below the fair range can still apply for this.

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PayPal Fees

PayPal has no annual fee, so you don't have to worry about this. They have an APR of 19.99%, and their minimum finance charge is at USD 2. You can avoid the charge by paying the entire balance that you have on your bill on or before the due date.

Explanation of credit score ranges

Explanation Of Credit Score Ranges

It is important to know the category that you fall into when it comes to credit score for you to be aware. The range of a credit score can go from 300 to 850. Always remember that the higher your score, the higher the chances of you to qualify for a loan. There will also be instances where a financing company is okay with 650 scores, while the other is fine with a 750 score. It will all depend on the lender itself.

A lender or a bank will check your credit score if you qualify for the application that you are requesting. Here are some of the credit score ranges that you should know.

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Bad credit score

People with a credit score below 579 is known as high risks. Foreclosures, poor payment history, and bankruptcies are the reasons why people fall into this category.

Good credit score

A good credit score ranges from 680 to 719. People with this credit score can expect approvals and interest rates that are better.

Very Good

A very good credit score ranges from 720 to 799. People with this credit score is known to be small risks, and they often get loan amounts that are higher than usual.


An excellent score ranges from 800 and above. Financial freedom is expected to people with this score.

How are credit scores calculated?

How Are Credit Scores Calculated

The weight of each of the five categories are; 30% of amount owned, 10% is for the new credit, 15% accounts for the length of credit history, 10% is the credit mix and the last 35% accounts for the person's payment history.

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The FICO score takes into consideration positive as well as negative aspects of the credit report. The percentage or the weight of any of the categories mentioned above may differ from a person to another depending upon the information available in the credit report.

The FICO score takes all of the information from your credit report. However, the banks or any other lending institution might look at your income, type of credit and employment history when you apply for a loan or mortgage.

Once a certain lender asks for a client's credit report, they can also ask for the Fico score. Other sources say that your Fico score will include 35% of your payment history, 30% of your credit utilization, and 15% as to how long have you been borrowing.

Paypal financing options based on credit score

Paypal Financing

One of the good and at the same time, the bad thing about the PayPal credit is that it does not affect your credit score. In the start, when you apply for the PayPal credit, they will go into your credit information and make an inquiry. This may take your credit score a few points lower but after that, if you do not pay your credit on time, your credit score will not be affected.

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However, if you pay every credit on time and stay away from credit limits, such activities will also have no positive impact on your credit score.

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