Are you trying to apply for the Paypal Credit program?
Are you getting rejected and wondering why you are not eligible for Paypal Credit?
Well, if you are having queries like these, you are on the right web page. Here, we will discuss all possible reasons why you are not eligible for the Paypal Credit program.
And fret not; we will also talk about the possible ways to fix the issues with your application.
So, let us dive right into the details.
How does Paypal Credit work
Paypal works like any other credit card system with a few differences. Paypal doesn’t have a physical card but features similar services.
The services are offered by Synchrony Bank, where one can ask for a loan amount of more than $99. And the special thing is, there is no interest if the user pays back the amount in under six months.
And only after six months, Paypal asks for the interest money on principal amount, not the balance amount.
And before you ask, there is no annual fee for joining the Paypal Credit program.
How to apply for Paypal Credit
Step 1 – Open Paypal app or website
To begin with, simple open PayPal app or website and log in to your account, if you haven’t already.
Step 2 – Login with your credentials.
If you do not have an account, you can create a new one. But, with a new account, you are decreasing your chances of getting accepted into the Paypal Credit program. However, there is no official statement supporting this claim. It is more of a suggestion.
Step 3 – Select Paypal Credit option
Now, select the option “PayPal Credit.’
Step 4 – Enter personal details
You will be asked for your date-of-birth, SSN, email address, phone number and other details. Make sure to enter correct details.
Step 5 – Select ‘Agree to the terms’ option
And that’s it.
That is pretty much it; you will have to wait for the confirmation notification from Paypal.
Paypal takes just a few minutes to show the results. You do not have to wait for long.
Well, if you have done everything right and still getting rejected by the team. We would suggest you check out the next part of this post.
There you will learn not only the reasons for rejection but also the ways to fix them.
Why am I not eligible for Paypal Credit
If you have tried implementing the steps discussed above in the procedure to apply for the Paypal Credit but still facing the same issues, we would suggest you check this part of the post.
Here, we have included all the possible reasons why you are not eligible for Paypal credit and are being declined by Paypal.
Check all the below-mentioned reasons carefully. We are pretty sure you will be able to fix the issue on your own. You can also try checking our tips and tricks and fix each issue.
Let us start without wasting any time now.
#1 Low Credit Score
Paypal Credit works similar to credit card. And you will need to have a good credit score in order to increase your chances of approval for the Paypal Credit feature.
Paypal uses Equifax and Experian FICOs metrics to analyze the credit score. But, the thing is, the popular payment’s app doesn’t mention any specific minimum credit score or range which can be maintained to get approval.
But, after analyzing a lot of reports by the users, some experts say that the minimum credit score needed for the approval for Paypal Credit is around 600 FICOs.
If you happen to have a credit score less than that, you will be disqualified, and your Paypal Credit application will be disapproved.
Fix – There is no specific fix for the issue. If you think if you have a credit score less than 600 FICOs, you will have to ramp up your credit score first. Pay your credit card bills on time and avoid any late payments.
#2 Feature Unavailable for You
Paypal Credit is a very significant financial tool if you can use it the right way. You won’t have to pay any extra fee if you pay back the amount before your time runs out.
But, you can only use this feature if you are in the USA, Canada, Europe, Japan, etc.
If you are anyone living in a region where the Paypal Credit feature is not supported, you won’t be able to apply for the Paypal Credit.
Paypal platform is supported almost everywhere on this planet, but Paypal Credit is entirely different as far as the features and supporting countries are concerned.
Fix –Â Again, there is no specific reason for that. You should check the list of eligible countries before even applying.
#3 Wrong Personal Details
As mentioned above, Paypal asks for personal details when you apply for the Paypal Credit program. The details are needed for the verification and keeping a record.
And in case you enter incorrect details and Paypal doesn’t find the data provided by you identical to that of the national records, your application will be rejected.
Fix –Â The only way out of this situation is entering correct and officially recognized details. If you do not have the details with you, wait and arrange personal information – number, address, etc. before you even apply.
#4 Wrong Social Security Number
Like some personal details like email address, one needs to submit the SSN, aka, Social Security Number.
SSN is one of the essential details that Paypal asks you for verification. And to proceed with the application, one needs to submit the last four digits of their SSN.
We recommend our users to avoid using any SSN generator apps or websites to create fake SSN and use it. These randomly generated SSNs don’t work these days. And as a consequence, you might get banned as well.
Fix –Â Use your officially recognized SSN to proceed with the verification.
#5 Flagged Paypal Account
Paypal, like other payment processors, has a security system. This automated system detects any account which might have been involved in unethical activities and flags them. Flagging of account restricts some features of Paypal for a definite period of time.
These automated security systems are meant to keep other users safe on the platform. But, sometimes, the systems might flag some accounts mistakenly.
And if you have been flagged on Paypal, you might not get verified for the Paypal Credit program. It’s such a significant issue and happens most of the time.
Fix –Â If you are sure your account has been flagged mistakenly, you can contact the Paypal support team and ask them about this issue. If the team finds no problems with your account, you will be able to use your account as intended.
#6 Abnormal Paypal Account Activity
Paypal considers credit score as a parameter of eligibility. It is because the company wants to make sure that the users asking for a loan will be able to return it, even if it takes them some extra time to return it.
Users with a low credit score and a lesser possibility of returning the money are considered ineligible.
Similarly, if Paypal finds that the user who has been applying for the Paypal Credit program is unable to maintain a healthy transaction activity, their account would be considered ineligible.
Fix –Â One must maintain a healthy Paypal account will regular transactions. Any kind of activity that violates Paypal terms must be avoided.
Final Words
That’s all, guys.
We have mentioned all the potential reasons which might have been causing issues with your Paypal Credit application.
As you might have seen, we have also mentioned ways to fix the issues. We have made sure to include easy-to-understand content.
But, if you still have any queries, you can let us know in the comments section below.
Further Reading:
(12 Reasons) Why is PayPal Declining My Card
How long does it take for Paypal to process a payment (To Bank, Debit card, Int.)
Why is Paypal not letting me transfer to Bank account
How long does it take to cash a check on Paypal
Fix: Paypal refunded but no money in bank | Where is my Paypal refund?
Ankit Kumar is an Engineer by profession and a blogger by passion. Over the last several years, he has written tons of articles, solving queries on Quora. He also has years of experience in investing in Cryptocurrencies, Funds, and Stocks.