'What is PayPal Credit?': How to use PayPal's line of credit to pay off online purchases over time

PayPal Credit has a particularly fast process, since you don't even need to wait for a physical card to arrive in the mail. You'll just need to fill out an online application and be subject to an instant approval based on your credit history.

You will need a PayPal account to get the card, which will also automatically link to your PayPal Credit, appearing as a payment option each time you check out with PayPal.

The flip side of the coin to the convenience of automatically linked PayPal and PayPal Credit is that PayPal has to be an option in order to use PayPal Credit.

Fortunately, this is increasingly common. You can use PayPal Credit at the many online sites where PayPal is accepted, including big name retailers like Walmart, Target, Macy's, and more, though Amazon is a notable exception.

PayPal Credit is a reusable credit line built into your PayPal account.

So if you want to make a larger purchase right away but your PayPal account's balance is too low, your PayPal Credit line can spot you the difference — and you can even choose to pay it over time.

As long as you pay off purchases of $99 or more within six months, you can get an item scotch-free of interest charges — as long as you make minimum payments.

One thing that's unfortunately similar between PayPal Credit and its credit card competitors is its sky-high interest rate, at 25.99%.

So long as you're responsible with paying the balance or large purchases within six months, there's no financial disincentive to getting PayPal Credit, as there is also no annual fee.

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