PayPal Credit Card | Amazing Cashback Mastercard | What we Love and Hate About It
Strongly recommended as core card in your wallet. The deserves consideration as your anchor cashback card due to its 2% on everything unlimited cash back rate. Don’t carry a balance though, the interest rate is high at ~24% and it’s variable.
Pros and Cons: PayPal Credit Card Cashback Mastercard
2% unlimited cash back on all purchases
No annual fee
Intro offer: $100 cash back (must spend $500 within 90 days)
3% cashback when you checkout with PayPal
Reputable issuer (Synchrony Bank) and processor (MasterCard)
~23.99% variable APR interest rate is above industry average
3% foreign transaction fee
No intro APR rate
Requires a PayPal account. To apply cash back rewards directly to your purchases and/or credit card statement requires a PayPal Balance Account
- 2% unlimited cash back on all purchases
- 3% unlimited cash back on all purchases made through the PayPal app when you select the PayPal Credit Card as the funding source through the app. Requires the merchant to accept PayPal.
- 23.99% variable purchase APR.
- Rate will vary with the prime rate.
- This rate may be more or less depending on PayPal’s evaluation of your creditworthiness. Their credit terms agreement states that they split accounts into 3 types aby creditworthiness and charge different rates depending on your account type.
- $0 annual fee.
- 3% foreign transaction fee.
- Cash advance rate is 28.49%, which is also variable with the prime rate, which is in addition to $10 or 5% of the advance, whichever is greater
- Late payments: up to $40.
- Returned payments: $29.
- Applications are subject to credit approval
- While they will take into account your total application, we recommend a credit score of at least 680 to be likely for approval
- Be 18 years old (or the age of majority in your state or territory)
- Have a government issued photo ID and tax identification number (for example a social security number)
- Be willing to provide a non-PO Box mailing address
- No additional perks or benefits were identified. They offer standard credit card perks like fraud and identity theft protection.
Paypal Credit Card Executive Summary: Light on perks, heavy on cash back and APR
Excellent overall card with some of the highest cashback rewards rate available today. Deserves consideration as a possible anchor card in your wallet. Light on special features/perks, but has no annual fee. Watch out for the super-high interest rate APR and payoff the balance on this card every month.
Let’s get into all the details ⏩ ⏩
Features and benefits discussion
Let’s check out the benefits:
2% unlimited cash back on everything is a great deal and is actually hard to find. Most unlimited cash back cards top out at 1.5%.
This card deserves consideration as a primary card. Except, of course, where you can earn more rewards in specific instances.
You’ll need a PayPal Balance account to use your cash rewards directly on your PayPal Credit Card. If you don’t have one of these accounts you will have to transfer your rewards to a bank account.
While the 3% rate for purchases made is nice, we don’t think it’s all that exciting of a benefit. To make an extra $1,000, for example, you will have to spend $100,000 with merchants that accept PayPal. That’s quite a lot of spending before you hit a material difference. PayPal seems to be a common way to accept payment for small and medium size online businesses. So unless you do a lot of shopping with them, this could be a good credit card to get.
We should note that this may be changing, though. PayPal claims that over one million businesses now accept payment through PayPal. They are working hard to expand their network, and this 3% could become more valuable over time as they do that.
To get 3% back you have to use the PayPal app to make a purchase. You must select the PayPal Credit Card Cashback Mastercard as the funding source.
The 3% headline rate is mostly a marketing gimmick. There has been a race recently among credit card issuers to have the highest ‘headline’ cashback rate. But the reality is that the restrictions they put on that headline rate make it not worth much. Like only if you use PayPal or rotating categories.
This makes it hard to make it make a material difference in the amount of cashback you receive. Unless you are a heavy user of what they’re offering and track and optimize spending carefully. Instead, focus on the core rate you will get for the majority of your purchases.
The PayPal Credit Card Cashback Mastercard also offers standard credit card perks. Examples include identity theft protection, Tap and Go payment, and CHIP security technology.
Potential pitfalls and drawbacks
Here’s what to watch out for when using the PayPal Credit Card:
Final Word on the PayPal Credit Card
Worthy of serious consideration as an addition to your wallet.
At Personal Finance Guru, we want to help you maximize your lifestyle through personal finance. You can trust the integrity of our independent financial advice. Our opinions are our own and have not been provided, reviewed, approved, or endorsed by any advertiser or financial product provider. To support and grow the site, however, we may receive compensation from the issuers of some products.
Editor & Author
Cathy Gresham is a finance whiz.
After earning her MBA from The Wharton School, she has worked in strategy at some of the world’s largest and most influential financial companies for 20+ years. Notably, she has worked for the biggest credit card issuers and networks and brings an insider’s perspective to how credit card products work behind the scenes.
Cathy is passionate about personal finance and investing, and loves helping people learn about these complex topics. Her wit and humor make learning about money fun, and she’s always happy to share her knowledge with others.
Cathy enjoys spending time with her family and friends when she’s not crunching numbers or developing investment strategies. She’s also an avid runner, and can often be found pounding the pavement on her morning jog.