Additional Benefits

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Beyond the travel offer, the PayPal Credit Card includes:

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Zero-Interest Financing

• 6 months of 0% APR on any purchase of $149 or more made online with PayPal

• Perfect for larger purchases or holiday shopping

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Flexibility and Convenience

• Use your PayPal Credit anywhere Mastercard is accepted

• Seamless integration with existing PayPal account

• Enhanced cash flow management options

Who Should Consider This Card?

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The PayPal Credit Card is ideal for:

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Frequent PayPal Users

If you regularly shop online using PayPal, this card extends that convenience to physical stores.

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Travel Enthusiasts

The 6-month interest-free financing on travel purchases could provide significant savings on vacation expenses.

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Budget-Conscious Shoppers

The ability to finance larger purchases interest-free for 6 months offers flexible payment options.

How It Compares to Other PayPal Cards

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PayPal offers several credit card options, each serving different financial needs:

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PayPal Cashback Mastercard

• 3% cashback when you checkout with PayPal online or in-store

• 1.5% cashback on all other purchases

• No annual fee

• $100 sign-up bonus after spending $500 in first 3 months

• Best for: Regular PayPal users who want consistent rewards

[[ SINGLE_CARD * {"id": "1413", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Paypal Loyalists", "headerHint": "3% Cash Back"} ]]

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PayPal Extras Mastercard

• 2 points per dollar on PayPal purchases

• 1 point per dollar on all other purchases

• Flexible redemption for cash, gift cards, or merchandise

• No annual fee

• Best for: Users who prefer points over cashback

[[ SINGLE_CARD * {"id": "1415", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Paypal Loyalists", "headerHint": "3x Points on Gas Stations"} ]]

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PayPal Business Debit Mastercard

• 1% cashback on eligible purchases

• Direct access to PayPal Business account funds

• No credit check required

• Best for: Small business owners managing cash flow

[[ SINGLE_CARD * {"id": "1411", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Paypal Loyalists", "headerHint": "1% CashBack Everywhere"} ]]

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New PayPal Credit Card (Physical)

• 0% financing on purchases over $149 for 6 months

• Special travel financing through January 2026

• No rewards program

• Deferred interest model

• Best for: Users needing short-term financing flexibility

Better Alternatives for Travel Rewards

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While the PayPal Credit Card's travel financing offer sounds appealing, it lacks the rewards and benefits that make travel credit cards truly valuable. Here are superior alternatives to consider:

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Citi Double Cash Card

• 2% cashback on all purchases (1% when you buy, 1% when you pay)

• No annual fee

• 18-month 0% intro APR on balance transfers

• Better long-term value than financing without rewards

[[ SINGLE_CARD * {"id": "580", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Straightforward Rewards"} ]]

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Chase Sapphire Preferred® Card

• 60,000 bonus points after spending $4,000 in first 3 months

• 2X points on travel and dining

• 25% more value when redeeming through Chase Travel

• Comprehensive travel protection

[[ SINGLE_CARD * {"id": "509", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Exceptional Travel Value"} ]]

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Capital One Venture Rewards Credit Card

• 75,000 miles bonus after spending $4,000 in first 3 months

• 2X miles on every purchase

• No foreign transaction fees

• Transfer partners for maximum redemption value

[[ SINGLE_CARD * {"id": "438", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "High Travel Rewards"} ]]

The Major Pitfall to Watch Out For

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Retroactive interest is the biggest risk with the PayPal Credit Card. If you don't pay off your travel purchase within 6 months, you'll be charged interest from the original purchase date at your card's APR (potentially 20%+ annually).

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This "deferred interest" model is riskier than traditional 0% APR offers because:

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• You're charged for the entire promotional period if you miss the deadline

• No grace period - even being one day late triggers full interest charges

• Buy Now, Pay Later services often offer more forgiving terms

Automatic Upgrades for Existing Users

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Important: PayPal is automatically upgrading existing PayPal Credit users to the new physical card. If you have PayPal Credit, you may receive an email stating:

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"Your PayPal Credit digital line will be upgraded to the new PayPal Credit Card!"

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What This Means:

• Your account age and credit limit remain the same - this is not a new account

• You can decline the upgrade if you prefer to keep your digital-only line

• The upgrade maintains your existing credit history and account standing

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Should You Accept the Upgrade?

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Yes, if you:

• Want the flexibility to use PayPal Credit in physical stores

• Plan to take advantage of the travel financing offer

• Don't mind having a physical card

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Consider declining if you:

• Prefer to keep your credit line digital-only

• Don't want another physical card to manage

• Are concerned about potential overspending

Application Process for New Users

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To apply for the PayPal Credit Card as a new user:

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1. Apply for PayPal Credit through your PayPal account
2. Complete the credit application process
3. Wait for approval - you may qualify for digital credit, physical card, or both
4. Activate your card when it arrives

Is the PayPal Credit Card Worth It?

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Pros:

• No annual fee

• Generous travel financing offer

• Flexibility to use PayPal Credit everywhere

• 6-month financing on purchases over $149

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Cons:

• Limited to existing PayPal Credit users initially

• High risk of retroactive interest charges

• No ongoing rewards program

• Better alternatives available for travel spending

• Deferred interest model more punitive than traditional 0% APR

Bottom Line

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The new PayPal Credit Card's zero-interest travel financing through January 2026 may seem attractive, but the lack of rewards and risk of retroactive interest make it less appealing than alternatives.

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For most travelers, a rewards credit card like the Citi Double Cash (2% cashback) or Chase Sapphire Preferred (valuable points + travel benefits) will provide better long-term value. The PayPal Credit Card is primarily useful for existing PayPal Credit users who need financing flexibility and can guarantee they'll pay off balances within the promotional period.

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Our recommendation: Unless you specifically need PayPal's financing structure and are confident about paying off purchases quickly, consider travel rewards cards that offer both earning potential and comprehensive benefits without the retroactive interest risk.

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Ready to apply? The PayPal Credit Card is rolling out to US customers over the coming weeks. Check your PayPal account for eligibility and application details.