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How to Increase PayPal Credit Limit?

It’s hardly a surprise these days to see PayPal credited as a valid means of payment on an online payment portal. PayPal’s track record helps solidify its status as one of the largest online payment platforms worldwide.

The credit account doesn’t come with a plastic card like you would expect from traditional credit cards. Instead, the credit is attached to individual’s or businesses’ wallets for more purchasing power where PayPal is accepted.

Many people use PayPal’s payment method for purchases but often find their plans thwarted by credit limits. New users, in particular, can find themselves at this crossroads. When you open a standard or business account, PayPal sets a low credit limit to determine good creditors from bad and considers several factors before increasing your minimum limit.

If you can demonstrate you’re a responsible credit user, you have a high chance of getting automatic increases. Making on-time payments can put you in good standing with the brand and establish a good payment history. Keep reading to learn other ways to increase your PayPal credit limit.

Eligibility of Credit Limit Increase

PayPal’s policy states you cannot apply for a credit limit increase on the platform. The brand reviews every account on its platform monthly to determine one’s eligibility for a credit line increase. If you’ve been an active user of the platform for at least six months, the brand may invite you to increase your credit limit, and they will give you a certain amount of time to respond.

If you don’t apply the PayPal credit limit increase to your account before the offer expires, you will have to wait until you’re invited again for a credit limit increase to enjoy the benefits. The brand will continue increasing your credit limit if you meet its eligibility criteria.

Tips for Getting a PayPal Credit Limit Increase

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You may qualify for an increase if you update the income information on your account profile. If your monthly income increases, PayPal will often offer you a new credit line increase for more purchasing power. So ensure to keep your income and account profile updated.

PayPal has other options to help you stay aware of your credit limit increase. You can automatically accept all credit limit increases through the manage preference prompts. Log into your PayPal account or link in the PayPal credit tile on your summary page to access the feature.

From there, you can automatically or manually accept or decline every credit limit increase to your PayPal account. Alternatively, you can choose to turn off credit limit increases. If you go for the third option, PayPal will not increase your minimum limit, even if you become eligible. As a result, only activate this option if it’s truly necessary. 

Activating Your PayPal Account to Send and Receive Money

To use PayPal, you need to register on the site. PayPal will then ask you to verify information like your bank account number, email address, phone number, and address.

Verification helps the brand fend off fraudulent activities and adds an extra security layer to your account. It lets other businesses know the brand is certain of your data and that they can trust your transactions. Although you can use the platform with most of your details unverified, the platform will restrict access to certain features, such as withdrawal and funds transfer, until you’re verified.

You can use your passport, driver’s license, or government-issued ID for verification. Another option is to provide proof of residence with a utility bill, bank, or credit card statement. PayPal will verify your account within seven business days, but you should contact customer support if it takes longer.

How Do You Know if a Business Accepts PayPal?

Although PayPal is a verified means of simplifying payments, most platforms have not integrated it into their payment system. So the way to know if the business supports PayPal is during checkout. However, the brand excludes merchants selling stored value cards, adult content, and gambling.

Do PayPal Credit Limits Protect Me From Unauthorized Charges?

Fraudulent activities abound on the internet, and your account might fall victim to unauthorized purchases if you are not careful. The beautiful thing is you’re not liable for those purchases. PayPal buyer protection applies to all purchases funded with PayPal Credit. So, if you discover these activities, report them immediately.

The brand will commence an investigation to root out the cause of the purchase. To make the report, log in to your PayPal account and head to the resolution center. Click on resolve a problem under the “more about your account” session and choose to dispute a transaction.

Select the item you wish to dispute, click “continue,” and complete the instructions to submit your dispute. To further protect your account, do not respond to any request for your personal information to increase your PayPal credit limit, and authorize two-factor verification to secure your account and prevent unauthorized purchases.

Does Paypal Credit Affect Credit Scores?

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When you apply for a credit increase, PayPal runs a hard credit check, which lowers your credit score. Every time your score undergoes a hard credit check, it lowers, and the hard check investigation stays on your credit report for two years. Therefore, the more loan products you apply for, the more hits your credit score takes.

Another downside is that getting approved for PayPal Credit limit does not prevent you from getting checked. The brand will report any anomaly in your payment to the credit bureaus, which is a detriment to your credit score. Paypal has been filing credit reports since 2019. So if you take up a loan, ensure you pay back your minimum balance promptly.

Synchrony Bank reviews your application and completes the audit on behalf of PayPal. You won’t lose much credit score with one hard check, but it could be considerably lower if you apply for multiple loans simultaneously.


PayPal offers automatic increases to individuals that prove they are credible users with good payment history. PayPal credit limit hinders one’s shopping activities, so if you want a boost, ensure paying back what you spend won’t be an issue. Your credit utilization ratio will decrease if you do not borrow anything extra.

If it gets out of hand, you can also request a credit limit decrease at any point by contacting support. Maintain a good credit score by keeping track of your credit reports to stay aware of your debt-to-credit ratio. Also, always pay your minimum balance to avoid getting bad credit scores.