A credit card is among the payment cards you can get from financial companies like banks and credit unions. They allow you to borrow money when you have non-left to fund your financial activities. In short, the cards operate like loans, although they operate in a revolving manner. You have to repay the loan again and again. There are various ways you can use a credit card. We shall see if you can add money from credit card to PayPal later.
PayPal is a money transfer company that supports peer-to-peer money transfers. It operates worldwide in more than 200 countries and is among the fastest money transfer channels in the world. Together with other online money transfer platforms, PayPal has revolutionized the money sector. People can exchange money instantly, yet they are far away from each other. That has made world commerce grow extraordinarily.
You can open a PayPal account online using devices such as smartphones, tablets, and computers. However, you must make sure you have a phone number, email address, and bank account before opening your account. The bank account allows you to fund your transactions when your PayPal balance is insufficient. Since there are no physical branches, PayPal operates purely online. However, it has a headquarters office in San Jose, California, United States.
How to apply for a credit card?
You can apply for a credit card from your bank or credit union. You should have a checking account with the financial company in question to get a credit card in most cases. The first thing before getting the card is to research the available cards and then choose the right one that meets your demands. You have to check on various factors to get a card that meets your expectations.
After getting the right card, you can apply as per the issuer’s guidelines. That means you can apply online or at a branch. Online application is the easiest since you only need to visit the issuer’s website and choose the card to apply for and proceed. When filing online, you should provide details such as your name, Zip code, address, email, phone number, and any other. After submitting all the details, you can wait for confirmation.
Usually, you will get a confirmation message in your email or phone number about the status of an application. You can automatically be approved for a credit card with bad credit if you present the correct details. For online applications, the issuer sends the card to your mail address so that you can activate and use it.
When you apply at a physical branch, you may get your card the same day or come back another day to pick it up once ready.
What factors should you check when applying for a credit card?
One should check various factors when applying for a credit card. You do not just wake up and get a card without knowing how it works, as you may get a costly card only to regret it later. The following are the various things you should check.
i) Credit limit
Your FICO score determines your borrowing limit if you apply for an unsecured card. However, various issuers have different limits for the same number of scores. You need to do your homework well to get the best card ever. For secured cards, your deposit dictates your borrowing limit.
ii) FICO Scores required
Before choosing the right card for you, it is also vital that you know your scores. You can get them free from your bank or credit union as long as you have used loans before. You can also get your scores for free from Credit Karma and similar platforms. You will know the right card to accommodate your scores when you get your scores. Every score has cards that go with it. You can get instant credit card approval for bad credit with no deposit at some institutions.
ii) Interest Rates
You have to repay the debt you take with some interest when you get a credit card. That is how your issuer can make money from you. Various issuers have different interest rates for their cards. Therefore, you should check the card with the lowest rate so that you can save some money in the process.
Every issuer has some fees that they charge their credit card users. These include foreign transaction fees, annual fees, monthly fees, late payment fees, and cash advance fees. It is advisable to get a card with low fees to avoid paying too much money to the card issuer.
iv) Zero Liability Protection
Sometimes your card might get lost. Someone else might use it fraudulently to pay online. In such a case, you should not be liable to pay any money gotten from the card if you have Zero Liability Protection.
What types of credit cards can you get?
Financial companies usually issue two types of cards. They include secured credit cards for rebuilding credit and unsecured ones. The secured cards are the ones that require you to deposit some money in your account to get them. As I mentioned earlier, the amount you deposit determines your credit limit.
By the way, secured cards are easy to get if you have money to deposit. You do not need any borrowing history to get them since your deposit is the security for what you borrow. Therefore, the cards are excellent for building credit from scratch. For boys and girls who finished their schooling recently, the cards can help them establish a borrowing history plus scores.
On the other hand, unsecured credit cards require a borrowing history. The more your scores, the more your borrowing limit and vice versa. Unsecured cards also charge high-interest rates for borrowers with low scores, while they charge low rates for those with good to excellent scores. The reason why those with low scores get high-interest rates is due to the risks involved. Such a person has a high chance of defaulting. After all, that could be the reason why they ended up with low scoring.
Can I add money from credit card to PayPal?
You cannot directly transfer money from your credit card to PayPal. It is not as easy as you can transfer money from one PayPal account to the other. But can you pay someone on PayPal with a credit card? It is possible to add your card to PayPal and use it to pay someone online. PayPal supports various credit cards, including Visa, MasterCard, American Express, Discover, etc.
Once you add your card to PayPal successfully, you can use your card’s balance when transferring money to someone else’s PayPal account. That is possible when your PayPal balance is below the amount you want to send. The following is the procedure to add your card to your Paypal account.
- Log into your PayPal account.
- Navigate to the dashboard and click the “Link a card” button on your account dashboard. You can see options such as debit cards, credit cards, and bank accounts. Choose credit cards.
- Enter your credit card details. They include the card number, the expiry dates, and the security code.
- Add a new credit card.
Once you have added the card, you can then start transacting. Remember that you can add as many cards as possible.
How to use PayPal?
There are various ways you can use your account once it becomes active. They include the following.
1) Send and receive funds
One of the practical uses of PayPal is to send and receive money. When sending finances, you require the email ID, phone number, or the recipient’s user name to send money to their accounts. Transfers are usually instant. You can also receive money from others in the same manner. The following is the procedure for sending money through PayPal.
- Log into your PayPal account.
- Click the Send & Request tab.
- Choose from the three options.
- Enter the email or mobile number of the recipient.
- Enter the amount to send.
- Click Continue.
- Review and confirm the details on the screen.
- Click Send Money Now.
2) Transfer money to a bank account
When you get payments from your employer through PayPal, you can transfer them to your bank account. That is possible if you have linked your bank account to PayPal. The steps below show how to transfer funds from PayPal to a bank account.
- Log into your account.
- Navigate to My wallet.
- Tap Transfer Money.
- Hit Transfer to your bank.
- Choose the bank account to deposit money in and click Continue.
- Enter the amount to deposit and click Next.
- Review your transfer details.
- Click Transfer Now.
3) Buy goods and services.
Another way you can use your PayPal balance is to buy goods and services. Various merchants allow you to make payments with your PayPal account by sending money to their PayPal accounts. PayPal offers business and personal accounts.
A credit card allows one to borrow funds from their issuer. You can get the card if you meet the issuer’s conditions. Secured credit cards require you to deposit money in your account, while unsecured ones require credit scores. You can use a credit card to buy goods and services, transfer to a bank account, and send money to others. You can also add it to PayPal and other wallets to fund your transactions.