Paypal personal loans: 2024 Review

Written by
Hanneh Bareham
Edited by
Hannah Smith
Updated on October 25, 2023

At a glance

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Check rate with Bankrate
4.3
Bankrate Score
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Availability
4.5
Affordability
4.8
Customer Experience
4.1
Transparency
4.6

About Bankrate Score

Full methodology

PayPal, the popular mobile and online payment exchange platform, now offers a pay-in-four loan option. Referred to as PayPal Pay in 4, the app allows borrowers the ability to use its buy now, pay later option with any of its participating online retailers. While there are other pay-in-four options with lower rates and higher loan amounts, PayPal's trusted reputation can bring peace of mind when avoiding predatory lending. 

Lender Details

Moneybag

Loan amount

$30-$1,500

Rates

APR from

0%-35.99%

Clock Wait

Term lengths

6 weeks-24 months

Best for existing PayPal customers financing an online purchase 

You need to have an existing PayPal account to apply for one of its loans and it states that your account activity and standing is reviewed when determining approval. Also, unlike some buy now, pay later lenders, you can only use the loan with one of its participating online stores or retailers.

Paypal pros and cons 

PROS

  • Checkmark

    No hard credit check.

  • Checkmark

    Convenient mobile app.

  • Checkmark

    Purchase protection.

CONS

  • Close X

    Must have PayPal account.

  • Close X

    Only accepted with online merchants.

  • Close X

    May report late or missed payments to collections.

Do you qualify?

PayPal doesn't disclose specific financial eligibility information, but it does say that the following is necessary for approval: 

  • You must be at least 18 years of age. 
  • Must not currently reside in Missouri or Nevada.
  • Must have an existing PayPal account that's in good standing.

PayPal also discloses that the following could impact your eligibility:

  • The amount of open PayPal loans you already have.
  • Your credit score and financial history.
  • Your repayment history, including past PayPal loans.
  • The amount of debt you have compared to your income (debt-to-income ratio).
  • Your demonstrated ability to repay the loan balance. 
  • Any recent income or credit changes.
  • How recently you've applied for other credit products. 

What Paypal doesn't allow funds to be used for

You can only use the PayPal Pay in 4 at select merchants where PayPal is accepted as a payment option. Thankfully, there are online retailers across the world that accept the loan as a valid method. 

If the online merchant doesn't list PayPal as a payment option when you get to checkout, then you likely aren't able to use the financing option for that purchase or with the store in general.

How this lender compares

logo
4.3
Bankrate Score
APR from
0%-35.99%
Loan Amount
$30-$1,500
Term Length
6 weeks-24 months
Min Credit Score
Not disclosed
logo
4.6
Bankrate Score
APR from
8.99% – 35.99%
Loan Amount
$2,000 – $50,000
Term Length
36 to 60 months
Min Credit Score
600
Read our reviewArrow Right
on Bankrate
logo
4.7
Bankrate Score
APR from
8.99% to 29.49%* with autopay
Loan Amount
$5,000–$100,000
Term Length
24 to 84 months
Min Credit Score
680
Read our reviewArrow Right
on Bankrate

PayPal vs. Affirm 

Affirm is geared more toward financing a larger purchase, while PayPal is aimed at financing  smaller purchases. Affirm's maximum loan amount comes out to over $17,000, while PayPal's sits at $1,500. Both have similar APR ranges, but Affirm has a total term length of 12 weeks. Both options are similarly priced if paid down within the set repayment period. However, Affirm's loan is the better option for larger projects or purchases. 

PayPal vs. Sezzle 

Sezzle's buy now, pay later loan offers larger loan amounts, longer repayment terms and flexible eligibility requirements. Unlike PayPal, Sezzle doesn't offer a 0 percent APR option, with its range starting at 5.99 percent. Regardless of your credit health or loan size, a Sezzle loan could come out to be more expensive than a PayPal loan, but it's recommended for financing larger purchases. 

Read a full review about Sezzle

PayPal: in the details 

Loan Amount
$30-$1,500
APR from
0%-35.99%
Term lengths
6 weeks-24 months
Funds available in
Almost instantly

What we like and what we don't like 

PayPal offers a competitive buy now, pay later option. However, there are potential downsides to consider before signing on to the installment loan option. 

What we like: 

  • No hard credit check:  Although it does take your credit into account, PayPal won't initiate a hard credit inquiry, which knocks your score down a few points. 
  • Convenient mobile app: PayPal allows you to make purchases and use its Pay in 4 option within its mobile app. 
  • Purchase protection: If you didn't receive your purchase, notice suspicious account activity or need to dispute a transaction, you may be eligible for PayPal's purchase protection program.

What we don't like: 

  • Must have a PayPal account: To apply, you must have an active PayPal account that's in good standing status.
  • Only accepted with online merchants: As of now, PayPal is only offered at select online merchants or retailers. 
  • May report late or missed payments to collections: Like most buy now, pay later lenders, PayPal may send any late or missed payments to collections. 

How to contact PayPal 

PayPal has an extensive online library of frequently asked questions, including a list of answers to frequently asked questions. You can also message a PayPal assistant immediately online or leave a message for an agent within its online portal. 

If you need to talk to a representative over the phone, you can call customer service at 1-888-221-1161 from 6:00 a.m PT to 6:00 p.m PT Monday through Sunday. You can also visit its online resolution center to resolve account or transaction issues. 

It states on its website that due to private reasons, Paypal's customer service department isn't able to review, change or give out specific details regarding the outcome of any application, including its loan applications.

How to apply for a loan with PayPal 

When you reach the check-out portion of the website, you'll be given multiple payment options. If PayPal is offered, then you can begin the application process. After filling out some basic personal information, like your name, income and address, you'll be given your decision process almost instantly. 

If approved, you'll be able to make your first loan payment and will be given your payment details. Here you'll be able to see the fixed payment amount and date. Keep in mind that during the application process, and at any time during the loan, you can choose to make extra payments or pay down the entire amount in one lump sum. 

Features and additional perks 

PayPal offers some decent features and perks. However, the lender does pale in comparison when looking at what others buy now, pay later companies offer. Here are a few benefits you can expect with one of it's loans: 

  • Purchase protection on eligible products.
  • Opt into a monthly payment plan for purchases over $10,000.
  • Can use your current PayPal balance to make payments.

Fees and penalties 

Like most pay-in-four companies, PayPal doesn't charge any fees, but it does charge interest for late or missed payments.

PayPal frequently asked questions 

 How Bankrate rates PayPal Pay in 4

Overall Score 4.3 Explanation
Availability 4.5 Low minimum loan amounts and undisclosed income requirements.
Affordability 4.8 Low starting APR and no fees, but higher maximum APR.
Customer Experience 4.1 Customer support limited on weekdays, online access and mobile apps.
Transparency 4.6 Prequalification not available, credit requirements not listed.

Methodology

To select the top personal loan lenders, Bankrate considers 20 factors. These factors include credit requirements, APR ranges, fees, loan amounts and flexibility to account for a wide range of credit profiles and budgets. Bankrate reviewed over 30 lenders and gave each a Bankrate rating, which consists of four categories:

  • Availability: What the minimum loan amounts are, its eligibility requirements and loan turnaround are considered in this category.
  • Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score.
  • Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.
  • Transparency: This category is measured by how accessible credit requirements, rates and fees are on the lender's page. We also took into account whether prequalification was available, as all these factors are key for consumers to make an informed decision.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.