PayPal Credit Expands to UK with Interest-Free Payments for 4 Months
PayPal Credit is making its way into the UK, allowing consumers to get loans for orders over £150 with qualifying credit. Any consumer that passes PayPal’s credit check can receive credit for their order and pay 0% interest for the first four months.
After these first four months, the interest rates jumps to a variable 17.9%. However, the four month timeframe resets with every purchase. In other words, it’s not 0% interest for the first four months you have the account. It’s 0% interest for the first four months after each purchase. Consumers can use this opportunity “again and again” to buy items on credit and pay them off without penalties.
PayPal predicts the average credit limit will be about £1,200, though that number and the interest rate are subject to change. The credit is available as an extension of your existing PayPal account. There is no physical credit card that comes in the mail.
In addition to the credit line available through PayPal Credit in the UK, consumers have the option to apply for installment plans with several major retailers that have partnered with PayPal. For example, consumers who make a purchase of over £199 with Dyson can opt for a 12- or 24-month payment program with a 14.9% interest rate.