PayPal is, in many ways, the primary choice for making online payments. The company is keen to build on this and has launched a new product in the UK to widen its appeal. PayPal Credit is a virtual credit card that can be used online, and as an incentive to sign up, there's a four-month interest-free offer.
As this is an online credit card, applying for it takes a matter of moments, and PayPal is quick to point out that there's no hanging around waiting for a card and PIN to arrive. Apply online and you could be approved for a credit extension to your PayPal account.
Just as with any other form of credit card, making an application for PayPal Credit involves a credit check - something to keep in mind if you're concerned about your credit score. Once signed up, you'll be able to make purchases via PayPal even if you don’t have funds in your linked bank account, or if you just fancy the idea of spreading the cost of a larger purchase.
PayPal describes the new virtual card: "PayPal Credit is like a credit card you can use for your online purchases, it takes minutes to apply and if you’re approved you’ll have a credit limit in your PayPal account right away."
The interest-free offer is... interesting. PayPal bills it as "0 per cent for 4 months to use again and again", going on to explain that "every time you spend £150 or more in one go using PayPal Credit, you’ll get 0 per cent interest for 4 months on that purchase". After four months - and for purchases over £150 - the interest rate jumps to a fairly standard 17.9 per cent p.a (variable).
If you want to apply for a virtual card, head over to the PayPal Credit website.