PayPal Credit, formerly known as Bill Me Later, is a credit service offered by PayPal that allows users to make purchases online and pay for them later. While it can be a convenient option for making purchases, there may be times when it's necessary to cancel a PayPal Credit card. In this guide, we'll explore the circumstances under which you may want to consider canceling your PayPal Credit card and provide step-by-step instructions on how to do so.
Understanding PayPal Credit
Before we dive into the specifics of canceling a PayPal Credit card, it’s essential to understand how the service works. PayPal Credit is a revolving line of credit that allows users to make purchases online and pay for them over time. The service offers a range of benefits, including no interest charges if the balance is paid in full within six months, no annual fees, and no foreign transaction fees. However, if you don’t pay your balance in full, you’ll be charged interest on your outstanding balance, which can range from 19.99% to 29.99% APR, depending on your creditworthiness.
Reasons to Cancel PayPal Credit
There are several reasons why you may want to consider canceling your PayPal Credit card. These include:
- High interest rates: If you’re struggling to pay your balance in full each month, the high interest rates associated with PayPal Credit can quickly add up, making it difficult to pay off your debt.
- Fees: While PayPal Credit doesn’t charge annual fees, you may be charged late fees if you miss a payment, which can range from 25 to 35.
- Credit score impact: If you’re not using your PayPal Credit card responsibly, it can negatively impact your credit score, making it harder to obtain credit in the future.
- No longer needed: If you’ve paid off your balance in full and no longer need the credit service, you may want to consider canceling your PayPal Credit card to avoid any potential fees or charges.
How to Cancel PayPal Credit
Canceling a PayPal Credit card is a relatively straightforward process. Here are the steps you need to follow:
- Log in to your PayPal account: Go to the PayPal website and log in to your account using your email address and password.
- Click on the “Wallet” tab: Once you’re logged in, click on the “Wallet” tab, located at the top of the page.
- Click on “PayPal Credit”: From the “Wallet” tab, click on “PayPal Credit” to view your credit details.
- Click on “Close PayPal Credit”: Scroll down to the bottom of the page and click on “Close PayPal Credit” to initiate the cancellation process.
- Confirm cancellation: You’ll be asked to confirm that you want to cancel your PayPal Credit card. Click “Yes” to proceed with the cancellation.
What to Expect After Canceling
After canceling your PayPal Credit card, you’ll no longer be able to make new purchases using the service. However, you’ll still be responsible for paying off any outstanding balance. Here are a few things to keep in mind:
You’ll continue to receive statements and be required to make payments until your balance is paid in full. You can make payments online, by phone, or by mail. If you have any questions or concerns about your account, you can contact PayPal customer support for assistance.
| Payment Method | Payment Details |
|---|---|
| Online | Log in to your PayPal account and click on "Make a payment" |
| Phone | Call PayPal customer support at 1-888-221-1161 |
| Send a check or money order to PayPal, P.O. Box 45950, Omaha, NE 68145-0950 |
Alternatives to PayPal Credit
If you’re looking for alternative credit options, there are several services available that offer similar benefits to PayPal Credit. These include:
- Amazon Rewards Visa Signature Card: This card offers no annual fee, no foreign transaction fees, and rewards on Amazon purchases.
- Citi Double Cash Card: This card offers no annual fee, no foreign transaction fees, and cash back rewards on all purchases.
- Discover it Cash Back: This card offers no annual fee, no foreign transaction fees, and cash back rewards on all purchases.
What happens to my credit score if I cancel my PayPal Credit card?
+Canceling your PayPal Credit card will not directly impact your credit score. However, if you have an outstanding balance, it's essential to continue making payments to avoid any negative credit reporting.
Can I reopen my PayPal Credit account after canceling?
+Yes, you can reopen your PayPal Credit account after canceling. However, you'll need to reapply for credit and meet the eligibility requirements.
How long does it take to process a PayPal Credit cancellation?
+The cancellation process typically takes a few minutes to complete. However, it may take several days for the changes to be reflected on your account.
In conclusion, canceling a PayPal Credit card can be a straightforward process, but it’s essential to understand the implications and potential consequences. By following the steps outlined in this guide, you can ensure a smooth cancellation process and avoid any potential fees or charges. Remember to always review your account details and make timely payments to avoid any negative credit reporting.
