What is cash credit line available mean


What are cash advances on a credit card & how do they work?

What is cash credit line available meanPosts: 4 Joined: Tue Sep 10, 2013 11:15 am AOL: Shanita Location: Maryland

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What is cash credit line available meanWhat are cash advances on a credit card & how do they work?

What is cash credit line available meanPosts: 639 Joined: Sat Aug 24, 2013 8:45 pm Location: Grand Forks, ND

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What is cash credit line available meanPosts: 1741 Joined: Wed Jun 05, 2013 3:12 pm Location: US

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. and some cards charge a fee for each cash advance on top of that.

What is cash credit line available meanPosts: 4 Joined: Tue Sep 10, 2013 11:15 am AOL: Shanita Location: Maryland

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what is cash credit line available mean

A cash credit is a short-term cash loan to a company. A bank provides this type of funding, but only after the required security is given to secure the loan. Once a security for repayment has been given, the business that receives the loan can continuously draw from the bank up to a certain specified amount.

In India, banks offer Cash Credit accounts to businesses to finance their ' Working Capital ' requirements [ requirements to buy raw materials or ' Current Assets ' , as opposed to machinery or buildings , which would be called ' Fixed Assets ' ] . The cash credit account is similar to current accounts as it is a running account [ ie. payable on demand ] with cheque book facility. But unlike ordinary current accounts , which are supposed to be overdrawn only occasionally, the cash credit account is supposed to be overdrawn almost continously. The extent of overdrawing is limited to the Cash Credit Limit that is sanctioned by the bank. This sanction is based on an assessment of the maximum working capital requirement of the organisation less the margin . The organisation finances the margin amount from its own funds.

Generally, Cash Credit account is secured by a charge on the Current assets [ inventory ] of the organisation. The kind of charge created can be either Pledge or Hypothecation. [1]

Special purpose line of credit

A relatively recent credit product has arisen due to economic trends and the impact the economy has had on individuals in general, but specifically for disadvantaged individuals due to special circumstances, affiliations, gender, or external bias. Lenders of many types have explored providing targeted services to select groups. However, most successful attempts have been done by consumer lending entities (licensed and unlicensed) that are generally filling a niche credit service abandoned by the traditional providers. These are credit services that, based on one or more pre-defined criteria, may qualify a borrower for their credit services.

What to Do When the Bank Pulls Your Line of Credit

What is cash credit line available mean

Ryan Weber considered himself a prudent business owner. He borrowed $6,000 from family members to start Radiant Photography in Las Vegas, and he paid them back--with interest--in three years. To cut expenses, he rented a studio when he needed it, instead of building his own. And when Advanta, a credit card company in Spring House, Penn., offered a business credit card with a $7,500 line of credit, he accepted it.

"Having $7,500 in reserve really helped," Weber says. "In case a check didn't go through from a client, it was there to rent studio lights or pay my cell phone bill."

Then last spring--a few months before declaring bankruptcy--Advanta pulled the credit lines of 1 million small-business customers, including Weber. It also capped their credit cards at the level of their outstanding balances, effectively cutting off their access to emergency cash.

"I was suddenly working without a safety net," he says. Like many small-business owners, he depends on timely payments from clients to pay his own bills. But in this economy, invoices are stretching to 60 days or longer. "My wife and I are paying the mortgage on our home and making payments on one car," Weber says, "and we have a 6-month-old daughter. Some months, I receive $5,000 from a single commercial client; other months I'm lucky to get two checks from magazines for $400 each. It's very stressful trying to meet our monthly costs with no backup funding."

Millions of small-business owners are suffering through the same predicament--and worse--as unprecedented numbers of the best banks pull back or cancel credit lines. In the first six months of last year, 38 percent of small businesses reported a decrease in their lines of credit or credit card limits, according to the National Small Business Association. More than 40 percent of small-business owners who had requested extensions of their credit lines were turned down, the National Federation of Independent Business reported, and many of those who received extensions were required to increase collateral, pay higher interest rates and/or agree to more stringent terms.

"A few years ago, losing a line of credit was a crisis--today, it's the new normal," says Marilyn Landis, a board member of the NSBA in Washington, D.C. "We business owners have burned through our personal savings, seen our credit card limits go down as our interest rates go up, and now our bankers are taking away our credit lines. But we still have customers who will pay us in 30 days and employees who expect to be paid every two weeks."

Losing credit suddenly can devastate a small operation. "Now I'm trying to keep my company running while I look for another bank to take on the $160,000 I still owe," says a Colorado technology consultant who asked that his name not be used because he is afraid of jeopardizing his relationship with his bank--the same bank that had courted him three years earlier and offered him a $250,000 line of credit, and pulled it entirely for 2010.

"It drives you crazy. I'm doing a good job, I'm still making money, and if I can't find a new bank to take on my credit line, I could be forced into bankruptcy," he says.

Even as the economy improves, the credit markets will remain tight through 2010. Forecasters predict that the home mortgage crisis will be followed by a similar crash in commercial real estate. "Until this sorts itself out, banks are caught between a rock and a hard place," Landis says. "They want to support local business but know that state and federal regulators will come in to evaluate their loan portfolios. In the name of making banks better, they are being forced to turn down loans because of collateral or credit scores they would have accepted previously." Many economists predict little easing of business credit until sometime in 2011.

In the meantime, what's a small-business owner to do?

Entrepreneur talked to financial experts, borrowers and lenders to analyze the options and find ways to cover monthly shortages, pay employees and simply stay in business.

We looked beyond the troubled national banks, such as Citigroup and Bank of America, which have cut way back on business lending. (CIT Group, the institution most friendly to small business, declared bankruptcy in November.)

We discovered that money may be available from local community banks or, surprisingly, local credit unions. Less surprisingly, a variety of alternative lenders has stepped up to offer a mix of loans based on your outstanding bills, daily credit card receipts or future purchase orders. You can even use your retirement funds to pay your rent. Many of these products carry fees and most charge interest rates that, in pre-recession days, would have left you gasping.

"It's become the wild west of financing outside the traditional realm," Landis says. "Be really careful."

Many of the country's 8,000 community banks have managed to stay clear of the mortgage meltdown and still have money to lend. But they, too, are subject to regulator scrutiny and are struggling to diversify their portfolios. A bank with several outstanding loans to pizza restaurants, for example, will not take on a request from a similar business, no matter how strong the application. Banks are even trying to lessen their exposure to certain parts of town or specific shopping centers.

But if one bank turns you down, ask those loan officers what other local institutions are making loans to your industry or area. You can find independent banks in your area via the bank locator on the website of the Independent Banks of America , or by just driving down Main Street.

John Blatz, vice president and senior client manager in the Shawnee, Kan., branch of Brotherhood Bank and Trust in Kansas City, says, "We are still issuing lines of credit to borrowers who are relatively local. Community banks want an intimate understanding of each customer and his or her industry before granting a credit line."

Unlike national or regional banks, where decision-makers grant credit according to strict underwriting standards, "We don't take a cookie-cutter approach," Blatz says. "If you've had a loss in the past one or two years, we want to understand why and see that you've made repairs to restore profitability."

Another piece of advice: Don't ask for a loan the first time you walk into a local bank. Community bankers want to get to know you first. "Go in and build a relationship," Blatz says. "Ask a loan officer how the bank feels about your type of business. What is the bank's sweet spot for credit lines? If you discover that they already have too many companies like yours in their portfolio, or that the credit line you want is too large, isn't it better to find that out in a casual conversation?"

Your best bet for getting a new line of credit may not be a bank at all. During the banking crisis, thousands of credit unions quietly amassed billions of dollars from members' savings and interest from home and car loans. Many of them are moving into business lending and offering credit lines--if you can find them.

Mike Hales, a director of the National Association of Credit Union Service Organizations, a trade association in Newport Beach, Calif., calls credit unions the world's best-kept secret--"and that's not a compliment." The country has 7,800 credit unions, 2,000 of which make business loans to their members, Hales says.

And many credit unions are offering membership to the public. The Boeing Employees Credit Union, for example, is open to anyone who lives in Washington. You can find credit unions in your community on the website of the National Credit Union Association . Call to ask if they make business loans and how to become a member if they do.

"Throughout the country, credit unions are increasing their small-business lending capacity," says William Beardsley, president of the Michigan Business Connection in Ann Arbor, an organization that manages commercial loan programs for Michigan credit unions. "In the last several years," Beardsley says, "30 cooperatives have formed around the country to manage business loans for hundreds of credit unions."

If you strike out at the bank or credit union, hundreds of alternative financing companies can provide you with short-term cash. But be warned: Many of the agents selling these financial instruments used to be mortgage brokers, and we know what happened there. Business-to-business lending is unregulated. Because usury laws don't apply and no industry group imposes standards, these products can carry extremely high fees and interest rates. Not unexpectedly, competition is fierce and a spokesperson for one company defends annual interest rates of 36 percent by pointing to competitors that charge 80 percent.

"Ask lots of questions," Landis advises. "Check with your peers and industry groups and check out the competition."

  • What is the effective annual interest? Many salespeople quote interest rates by the month, without telling you how much a loan will cost if it extends beyond 30 days.
  • Do you charge upfront fees? Less-scrupulous providers charge a loan origination fee whether they place your loan or not.
  • What are the penalties for not making a payment on time? We've talked to companies whose charges sound reasonable, until they say that late fees begin at $50 a day.
  • Could I talk to some of your other borrowers? The agents who say no probably don't want you to hear what the borrowers might tell you.
  • William Dunkelberg, Philadelphia-based chief economist of the NFIB, cautions: "Don't bet the house--or your retirement savings--until you weigh the real chances of your business making it. Are you in a declining market, where people are moving away? If so, you might be better off cutting your losses and closing down."

Borrowing Against Receivables

If you no longer have a credit line to tap into when your customers don't pay you on time, one painful alternative is to find a lender to advance money against your outstanding receivables. Companies that provide this service are efficient--loan requests are usually processed in less than a week--but they charge high fees and may trap you into using them far longer than expected.

At least 1,000 companies provide this service, called factoring: They buy up your receivables at a discount and are reimbursed when your customers pay them. Factoring provides you with immediate cash and allows you to pass on slow-paying clients to someone else for collections.

But it comes at a steep price: Factors quote interest rates by the month, so what sounds like only 3 percent can mean 36 percent for the entire year. Dan Effa, a Vancouver, British Columbia, franchisee of Liquid Capital, a factoring group with more than 65 franchises in the U.S. and Canada, charges his clients an effective interest rate of 36 percent or more a year.

"Last August," Effa says, "I had a call from the owners of a commercial printing company whose bank was closing down their $1 million line of credit. The only way they could keep it going was to sell me receivables."

Factoring companies that serve restaurants, retailers, hair salons and even doctors get paid back through a percentage of MasterCard or Visa receipts.

Cathy Bass, a founder of Business Financial Services, headquartered in Raleigh, N.C., says her company can advance $3,500 to $500,000 if it is allowed to take over the processing of your credit card payments. Each day, Business Financial Services deposits about 80 percent of a company's credit card receipts into the client's accounts and keeps the rest until the advance is paid off.

"This is not cheap money," says Bass, who works from Aliso Viejo, California. "If you receive an advance of $10,000 from us, you'll pay back $12,500 to $14,500, depending on the risk involved."

On Deck Capital in New York City adds yet another twist and will loan $5,000 to $100,000 to a high-volume, low-ticket business such as a plumber or restaurant, based on daily monitoring of financial data. Founder Mitch Jacobs says On Deck charges 18 percent to 36 percent annual interest and is paid back through daily debits from your business checking account.

Unsecured Lines of Credit

If you have a personal credit score of more than 700, you may be able to get working capital based on that alone. Underwriters for companies offering these lines have discovered that people with outstanding credit are a good risk, even if their businesses are losing money right now. If you have managed to keep your personal FICO score high, you will likely qualify.

Several companies, including Diamond Financial Services in Raleigh, N.C., arrange business credit lines ranging from about $30,000 to $100,000 through a network of financial institutions--at a high price. Diamond consultant Don Johnson, of Hazlet, N.J., says applicants pay a $2,000 fee that is refunded if Diamond cannot find a bank to fund your credit line. Once the line is approved, you owe Diamond an additional 10 percent of the line's value, a bill you can pay with one of your new credit line checks. You'll then pay the bank annual interest of 5 percent to 9 percent.

Jack Salemmo arranged for a $35,000 unsecured line of credit through Diamond when he opened Auto Image Services Inc., an automobile reconditioning business, in Holmes, Penn., late last year. This means that he paid out $5,500 for the right to borrow $35,000 at a conventional interest rate; that's more than 15 percent of the amount of the loan just to borrow the money.

"It was expensive," Salemmo says, "but I didn't have time to go shopping for financing."

Here's a typical scenario for one of these loans: A California business owner could sell a large selection of cashmere shawls to Costco for $400,000--if she had the money to pay the manufacturer in China. Enter PurchaseOrderFinancing.com , of Chicago, one of about 50 firms that will pay a manufacturer for goods you'll deliver to a credit-worthy buyer. Dan Casey, CEO of PurchaseOrderFinancing, says such transactions only work for deals with middle to high margins and cost 1 percent to 5 percent a month of the amount advanced.

The terms get more expensive the longer it takes for your goods to be manufactured and your invoice to be paid. If the time drags into months, you could end up paying out almost one-third of the total price of your goods for the loan itself.

Borrowing Against Your Future

For about $5,000, in addition to an annual record-keeping fee of $800, Guidant Financial in Bellevue, Wash., or a handful of other companies will help you invest part, or all, of your 401(k) or other retirement funds into your own business. Instead of investing that money into stocks, "you become the fiduciary of your own retirement fund," says Guidant co-founder David Nilssen. Using your retirement money for working capital means you'll have no debt and no monthly payments, but you'll also have nothing to live on later if your business fails.

"Do not use this as an alternative if you can't get a loan anywhere else," Nilssen says. You should invest your retirement fund into your company only if you feel it will grow safely there, not as a desperate way to keep a failing company alive for a few more months. Most Guidant customers use retirement funds to start new businesses or expand thriving ones.

Final Option: Go Cash

Weber, the Las Vegas photographer, decided to skip credit altogether and set up a business savings account, which he'll tap into only when necessary.

"I've set up a merchant account so clients can pay me by credit card, which is easing my cash flow problems," he says. "Otherwise, I plan to go debt free and run my business on a cash basis. Losing my credit line was much too stressful."

It almost goes without saying: If you find a lender willing to open a credit line for your business, you can't afford a misstep. Bankers prefer applicants who provide detailed financial information and who can talk easily about their business's financial situation. If you aren't confident explaining a recent sales decline, take along your accountant or lawyer. And prepare:

Put together a clean package of critical information. Include three years of financial statements and tax returns from your company, a personal financial statement and your personal tax filings--and include several copies. Collateral for your line of credit will be your inventory or receivables. If you own an inventory-rich business, include a detailed listing, with information about how often it turns, how you cull bad inventory and how subject it is to obsolescence. Otherwise, include a list of your customers, how you qualify their credit worthiness, their ordering and payment history and how you collect when they don't pay on time. "You want to make the bank confident they can lend money against your receivables," says John Blatz of Brotherhood Bank and Trust in Shawnee, Kan.

Make an appointment with a loan officer with expertise in your industry. Dress appropriately: That means no jeans, and also no Armani suits if you're in a laid-back community.

Give the lender a reason to make the loan. Tell a compelling story and invite the loan committee to visit your company and meet your management team. Ask about underwriting standards, so you won't be blindsided if the institution wants a personal guarantee, for example.

If the officer asks for more information, provide it quickly.

If you are turned down, ask the officer why and, if possible, make those changes. You can then reapply, or move on to another local institution.

Don't take rejection personally. "Lending is a process," says John Hamburger, president of Franchise Times Corp. in Minneapolis. "It just means that your credit line will not work with that lender at that time. Continue your relationship."

What Is a Secured Credit Card – Pros & Cons for Rebuilding Credit

Having bad credit is a Catch-22. You need an active credit line to help rebuild your credit, but most lenders won’t extend you credit if you have a troubled financial past. In fact, most lenders set a credit score cutoff point and if you fall below it, you won’t qualify for any traditional credit card. While you may have some luck appealing to your personal bank, a more viable option is to simply get a secured credit card.

Because secured credit cards come with stricter terms, many lenders are willing to offer them to people with poor credit. But while these cards can be advantageous, they also come with drawbacks. Therefore, you need to consider the pros and cons of secured credit cards before you apply for one.

Secured credit cards get their name because the lender secures your line of credit with collateral. It works like this: You deposit money into an account and the lender generally offers you a line of credit equal to the amount you deposited, though sometimes your credit line will be less than your upfront deposit.

Most lenders require an opening deposit ranging from $200 to $500. So if you default on the credit card, the lender can use the money in the account to cover your debt. However, if you regularly make your payments on time, some lenders will increase your credit limit without requiring you to add more money.

The lender will report your payment history and debt amount to the credit bureaus each month, which can help or hurt you depending on how well you manage the account. Once you close the account and pay off your balance, the lender will return your deposit. Many lenders will also let you graduate to a traditional credit card after a year or more of timely payments.

In this way, secured credit cards can help people with bad credit improve their credit score while rebuilding their credit history.

Secured credit cards come with many advantages, especially for people who have little or bad credit:

1. Rebuilding Your Credit Score

The primary purpose of a secured credit card is to give you a chance to rebuild your credit rating so you can qualify for a traditional card in the future. You can do this simply by paying your bill on time every month and keeping your balance low.

Hotels, airlines, and car rental agencies require a credit card to book a room, buy a ticket, or rent a car. Having a secured credit card instead of just cash or a debit card will enable you to make these purchases.

3. You Can Graduate to an Unsecured Credit Card

Many lenders that offer secured credit cards also allow you to graduate to an unsecured card once you’ve made payments on time for several months. Even if the lender doesn’t offer a graduation program, however, you can apply for unsecured credit cards after you establish a good payment record with your secured credit card.

Since secured credit cards typically come with lower limits than unsecured cards, you’ll have a cap on your spending. This will keep you from getting into too much debt, which, in turn, can hurt your credit score.

Many lenders allow you to earn interest on your secured credit card deposit. As long as you keep your account in good standing, you’ll get your deposit back plus interest when you close your account or graduate to an unsecured card.

6. Access to Emergency Funds

Since most places take credit cards, you can use your secured credit line to pay for unexpected expenses when you don’t have enough cash on hand to cover them, such as a flat tire or emergency vet trip. That said, you will still be limited by your available credit, which may be low, and you will not be able to pay for emergencies in excess of this.

7. Lower Fees Than Some Credit Cards

A few lenders offer unsecured credit cards geared towards people with bad credit. While these cards will give you access to an unsecured credit line, they have a higher interest rate and more fees. In fact, most “bad credit” unsecured cards have twice the interest rate of a secured card and charge both an annual fee and a monthly processing fee, just for having the card in your wallet!

While secured credit cards offer significant benefits, there are important downsides that need to be considered before opening an account:

Secured credit cards typically come with a high interest rate that can snowball quickly. In other words, if you do not pay off your balance in full every month, the lender will charge interest on the remaining amount, which will compound every month as long as the balance goes unpaid.

For example, after a few months of only paying the minimum, you could be looking at hundreds of dollars in interest and fees alone, which may leave you unable to pay off your debt.

With a secured credit card, you can’t enjoy the fee-free lifestyle that comes with a traditional credit card. Many unsecured credit cards offer low-interest rates, no annual fees, no monthly processing fees, and reasonable penalties. But even the best secured credit cards won’t match this. In fact, most secured credit cards not only charge an annual fee but also heftier penalty fees should you miss a payment, go over your credit limit, or have a returned check.

Many secured credit cards will give you a credit line up to $10,000, if you can deposit that much. Alternatively, if you only have $300 or $500 to deposit, that is what your credit line will be. Having a low credit limit can put you at risk for maxing out your balance quickly if you do not carefully watch your spending, and incur charges for interest and fees.

With an unsecured credit card, you can apply for and receive a credit limit without having to put down a deposit. With a secured credit card, however, you need to front a deposit before you can receive the card. Plus, you’re limited to spending what you would have otherwise had in your bank account anyway.

This is simply a means for you to rebuild your credit; it’s not a card that extends you credit and offers no real advantage over your debit card in an emergency situation.

5. Some Lenders May Report Your Account as a Secured Credit Card

Typically, a secured credit card will look identical to an unsecured credit card on your credit report. But some lenders may specifically earmark your account as a secured credit card account which could hurt you if potential lenders view a secured credit card holder as a higher risk.

Secured cards are bare bones credit products. If you have decent or even marginal credit, you may qualify for a traditional credit card instead. Since traditional credit cards offer lower fees, higher credit limits, and perks such as cash back or travel rewards, if you can get one, they are often a far better deal.

However, if you have very limited or poor credit, you’re probably better suited for a secured credit card. Just make sure your credit problems are behind you before you apply. A secured credit card will only help you rebuild if you stay committed to paying on time and keeping a low balance. But if you miss a payment or max out the card, it could drive your credit score even lower.

Do your research before applying for any secured credit card to make sure you’re comfortable with the minimum opening deposit, annual fee, interest rate, and incidental fees. Also make sure the lender reports to all three major credit bureaus: Equifax, TransUnion, and Experian. Don’t forget to check if the lender has a return or graduation policy, either. If they do, you should be able to qualify for a traditional card with a better rate after a year or so.

Have you opened a secured credit card in the past? Did it help you improve your credit history and get back on track?

Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

what is cash credit line available mean

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Select PayPal Credit as your payment choice during checkout. You’ll be asked to provide your date of birth and your Social Security number, and then to agree to the terms and conditions, to apply for a PayPal Credit account. You’ll know within seconds if you are approved. And here’s the cool thing: your PayPal Credit account will be linked to your PayPal account and you’ll see it as a payment option every time you check out with PayPal.

How do I select PayPal Credit as my payment source?

There are two ways to choose PayPal Credit. Some merchants have a PayPal Credit option at checkout. If they do, you can simply choose that option. If you don’t see a PayPal Credit option, check out with PayPal, and then you’ll have the option to select PayPal Credit as your payment method. Either way a window will appear on your screen where you’ll provide your date of birth and the last 4 digits of your Social Security number, and then agree to the terms and conditions. Approval takes just seconds and you can complete your purchase.

Can I use PayPal Credit when shopping on eBay?

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You’ll have the option to make no payments for 6 months, on qualifying purchases. You will receive monthly statements and can make payments at any time. As long as you pay in full by the promotion expiration date, you will not be billed interest for that purchase. If you do not pay in full, interest will be calculated from the posting date (which is usually within a few days after the purchase date) and will be billed to your account.

How do I pay my PayPal Credit bill?

You’ll receive monthly statements and can choose to pay in full or over time (interest charges may apply). For your convenience, once you link your PayPal Credit and PayPal accounts, you can keep track of your purchases and make payments on PayPal.com. Pay your balance due from either your PayPal balance or your bank account.

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Is there an annual fee to use PayPal Credit?

Nope! There is no annual fee to use PayPal Credit. See the Terms and Conditions.

Do I have a Credit Line and how much will it be?

Yes. Once you’re approved, Comenity Capital Bank will open a PayPal Credit account with a Credit Line of at least $250.

How do I increase my credit line with PayPal Credit?

You can continue to use PayPal Credit for purchases and, if those purchases cause your outstanding balance to exceed your credit line, we’ll evaluate you for a credit line increase. Your eligibility for a credit increase is determined by your credit history and customer history with PayPal Credit, and the Terms and Conditions. This will happen automatically during checkout, so you don’t even need to ask.

What is the Annual Percentage Rate (APR)?

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What does ‘Subject to Credit Approval’ mean?

PayPal Credit is a credit account that you can use to make purchases and send money. Comenity Capital Bank will review and consider your credit report and other credit related information prior to opening your account and establishing your credit line. Creditworthiness is determined by Comenity Capital Bank. This process happens in a matter of seconds as part of the PayPal Credit checkout process. Once you are a PayPal Credit customer, you can use your credit line to make purchases. If you make a purchase that would cause your outstanding balance to go above your credit line, we will review your credit history and history with PayPal Credit to instantly determine whether to increase your credit line.

Do you check my credit report every time I make a purchase?

No. A credit report is reviewed when you apply for PayPal Credit and occasionally when you attempt to increase your credit line. Periodically, we’ll obtain updates of your report, but these updates have no impact on your credit score. If for any reason your Credit Line is decreased, you’ll be notified of the reason in writing.

Is there a fee for late payments?

Yes, you will be charged a late fee for each month that the minimum payment is not paid by the payment due date. The first time you’re late, the amount of the late fee will be the same amount as the missed payment, up to $27. If you’re late again, the late fee will be up to $38.

Does PayPal Credit protect me from liability for unauthorized charges?

Yes! PayPal Credit provides “zero fraud liability” protection, the same protection provided by most major credit cards. This means you are not responsible for unauthorized charges. And we verify your identity with top-of-mind information such as your date of birth and the last four digits of your Social Security number, so there’s no account number that can be lost or stolen..

Where else can I use PayPal Credit?

PayPal Credit is available on purchases at thousands of stores that accept PayPal. It’s also available for purchases on eBay and exclusively at thousands of other online stores.

Why should I link my PayPal Credit and PayPal accounts?

Linking your accounts means you’ll be able to use PayPal Credit at most places PayPal is accepted. You can also get six months to pay for your purchases of $99 or more through PayPal Credit - and you could score deals such as free shipping, valuable discounts and promotional offers! By linking, you can also easily manage both accounts—pay your bill, view recent activity, set payment reminders, and much more at PayPal.com.

I have a separate PayPal Credit (formerly Bill Me Later) account. How do I add it to my PayPal account?

Go to www.paypalcredit.com and choose “Link”

I’ve linked my PayPal Credit and PayPal accounts. Do I still need to register?

Nope. Once you link your accounts there is no registration step. You can simply log into PayPal.com and get access to up-to-the-minute account activity, special discounts, free shipping, and promotional financing offers from your favorite merchants.

What if I do not currently have a PayPal account?

In order to link your PayPal Credit and PayPal accounts, you must first open a PayPal account. If you do not already have a PayPal Credit account, you can sign up for both accounts at the same time.

What if my PayPal account is blocked or closed?

If your PayPal account is blocked or closed, you will not be able to go through the online linking process. Please call PayPal Customer Service at 1-888-221-1161 and we will do our best to help.

Can I use PayPal Credit to send money?

Yes! You can now send money with PayPal Credit. It’s easy—simply log in to PayPal.com and select the Send Money tab. Enter the recipient’s email address or phone number, amount, and transaction type. Click Change to select PayPal Credit as your payment method, then confirm your payment details. Your transaction will appear on your monthly PayPal Credit statement. When you use PayPal Credit to send money, a flat fee of 2.9% + $.30 US dollars (USD) per transaction is included in your payment total. This is the same fee you pay when you use a debit or credit card to send money through PayPal. This feature is not available on mobile devices. Note: PayPal Credit promotional financing offers do not apply to send money transactions.

Will my funding sources transfer when I start managing my account on PayPal.com?

No. Since the requirements for PayPal Credit and PayPal differ, we cannot add your current funding sources without you going through approval and set up process of adding them yourself. This is also a security feature to make sure you are in control of who has access to your accounts.

Will my previously scheduled payments transfer when I start managing my account on PayPal.com?

Yes. Any payments you have already scheduled will still process on time from your previous funding sources. You’ll even see them process through your new PayPal.com interface, even though you will not be able to access those funding sources until you add them directly into your PayPal account.

Will all of my information be carried over to PayPal.com?

When you link PayPal Credit to your PayPal account, all credit history will automatically transfer over. The linking process is what will enable statements, transactions, account history and profile information to be displayed on PayPal.com. However, for security reasons, funding sources associated with your PayPal Credit account will not automatically transfer over PayPal.com. You will need to manually establish or update any links from financial institutions (such as your bank accounts) to PayPal Credit. We recognize this poses a minor inconvenience for customers, but for security reasons this information will not automatically transfer.

Is there a number I can call if I have additional questions?

Yes there is. Our customer service department is available to assist you with your PayPal credit related issues. Please call us at 1-866-528-3733 and we will do our best to help.

PayPal Credit is subject to credit approval, as determined by the lender, Comenity Capital Bank.

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