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Use PayPal Pay in 4 to make large purchases more affordable.
Sometimes you can’t afford to pay the full balance of a purchase you make, which leads you to charge it. If you don’t pay your credit card balance off in full in the first 25 days, you’ll pay interest and if you miss your payment altogether, you’ll pay late fees too.
Sometimes charging a large purchase isn’t ideal, whether you don’t have the room on your credit card or don’t want to pay the interest. PayPal Pay in 4 Buy Now Pay Later helps this situation by spreading your payments out over 6 weeks. It’s like its rivals Affirm and Klarna, but every program has its own requirements.
Here’s how it works.
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What is PayPal Pay in 4?
PayPal Pay in 4 splits up your payment into four equal installments. You make the first installment at checkout and the remaining 3 payments every two weeks. There are no interest charges or late fees. You pay the same amount you would have paid for the purchase if you paid it in full at checkout.
To use PayPal Pay in 4, you must shop with a retailer that allows it. Fortunately, PayPal is a household name and thousands of retailers work with the new program including Best Buy, Coach, Fossil, Target and more.
Most people have a PayPal account already so applying and using the program is easy for most and because it’s a trusted name, it’s easier to choose.
How to use PayPal Buy Now Pay Later
To use PayPal Pay in 4, select PayPal as your checkout method and then select ‘pay later.’ Within this option, choose ‘pay in 4.’ This starts the application process.
You must agree to the terms and submit your application, which only asks for minimal information including information about your purchase. PayPal decides within seconds if you’re approved, so you can make your purchase while you’re still in the cart.
If approved, you must make your first payment at checkout. Your remaining payments are split up over the next six weeks with the first installment due two weeks from the purchase date. You can link your debit or credit card to your PayPal account so you never miss a payment. In 6 weeks your purchase is paid in full, and you don’t incur any interest charges or fees.
Who is Eligible for PayPal Buy Now Pay Later?
PayPal isn’t very transparent about what they look for when approving (or declining) an application. The process takes only a few seconds. What we do know is they pull your credit (soft credit pull) and they look at your PayPal account history.
They likely use your credit history to determine if you qualify, but also use information about your PayPal account.
You must also be 18-years old and live in a state that it’s available, as well as shop with a retailer that accepts this payment option.
What is the PayPal Pay in 4 Limit?
The PayPal Pay in 4 limit ranges from $30 to $1,500. You can buy something for as little as $30 and split it into 4 payments or as much as $1,500 and split it into 4 payments. The more you spend, the higher each installment will be. How much of limit you are approved for depends on you history with PayPal and the result of your soft credit check.
Does PayPal Pay in 4 do a Credit Check?
PayPal may check your credit when you apply for Pay in 4, however, they only do a soft credit check which doesn’t affect your credit score. It won’t show up on your credit report as an inquiry, and your loan with PayPal won’t show up on your credit.
Is Pay in 4 the Same as PayPal Credit?
PayPal Credit is another way to pay for your purchases over time, but it’s different than the PayPal Buy Now Pay Later program.
With PayPal credit, you get a credit line (like a credit card). You can use the credit line to make purchases anywhere PayPal is accepted. You’ll owe a minimum payment each month and can pay the balance in full at any time. You can also get approved to extend your payments over 6 months interest free if you make the minimum payments.
If you miss a payment, there are late charges and PayPal credit gets reported to the credit bureaus so it can affect your credit score.
PayPal Pay in 4 doesn’t affect your credit and doesn’t have a revolving credit line. You use it for a one-time purchase and then must re-apply if you want to use it again.
Can you Pay off a PayPal Buy Now Pay Later Account Early?
You are free to pay your PayPal balance off at any time. You are obligated to make the installment payment every 15 days, but if you decide to pay the balance off early, there is no penalty for doing so.
Final Thoughts
If you’re thinking about a large purchase and wondering how to finance it, consider the PayPal Buy Now Pay Later plan. It spreads your payments across 4 payments with the first payment due at the time of purchase.
It doesn’t hurt your credit and it’s easy to use. Since it doesn’t cost anything, you can use the plan to make your payments on large purchases more affordable without racking up credit card debt or taking a chance on ruining your credit.
The PayPal Pay in 4 limit is high, giving you plenty of opportunity to afford large purchases, without the risk of putting yourself into credit card debt.