Can you turn PayPal credit into cash?

Long gone are the days where PayPal was simply a money transferring app where you send friends and family petty cash for splitting bills or general lending. It is much more than that, with an additional business section and a credit system.

Today, we’re going to be focussing on their credit system and looking at whether it is possible to turn it into cash.

First of all, it’s worth telling you a little bit about PayPal credit and what it should be used for. Long story short, PayPal Credit is a digital credit card.

If you are successful in your application for PayPal Credit then you will be allocated a credit limit which you can then use to make online purchases much in the same way you would use a standard credit card from a bank.

You will be charged on interest on these purchases and it is your responsibility to make monthly payments each month to reduce your credit. Further information on PayPal credit can be found here.

So, can you transfer PayPal credit into cash?

The answer to the question ‘can you turn PayPal credit into cash?’ isn’t a straightforward one. While technically, no you can’t, there is a roundabout method which effectively does turn PayPal credit into cash.

This isn’t a straightforward method and is essentially a loophole in the system, however, if you really do need to turn your credit into cash then it is a system that will work for you. To complete this process, follow these instructions:

  1. Log in to your PayPal account on a web browser.
  2. Select ‘send money’.
  3. Enter in a friend or family member’s PayPal address and enter in the amount of credit that you wish to turn into cash. Make sure you absolutely trust this person because this process entirely depends on their co-operation.
  4. Change the payment method to PayPal Credit and then click send.
  5. Now, the person who you sent the PayPal credit to will need to log on their PayPal account where the credit you sent them should be there waiting for them, but as cash.
  6. This person will then need to select ‘send money’ and enter in your PayPal email address.
  7. Then, they need to enter in the amount of money they received from you and send it back, but this time selecting ‘PayPal Balance’.
  8. This money will now be back in your account but this time it will be registered as cash, as opposed to PayPal credit.
  9. You are now free to withdraw this money into your bank account, where usual wait times of 2-3 days will apply before you see it.
  10. Now all that’s left for you to do is pay back the credit you’ve used in monthly instalments, ensuring that you are meeting the minimum amount each month.

We would urge caution when it comes to using credit as cash. Ultimately, any form of credit should only really be used in emergency situations or if you are planning on paying for a large event such as a wedding or a holiday.

Additionally, it may be more prudent to apply for an interest free credit card from a bank or building society instead so you aren’t paying any interest fees when it comes to paying the credit back.

How to apply for PayPal credit

Before you are able to begin the process of turning PayPal credit into cash, you will actually need to have a set amount of PayPal credit available to you.

In order to get this, you need to apply for credit via the PayPal website. To apply for credit, please follow these steps:

  1. Log in to your PayPal account via a web browser.
  2. On the homepage you should see a promotional box inviting you to apply for PayPal credit. Select ‘apply now’.
  3. This will take you to the application page. Enter all the relevant boxes with factual information.
  4. Submit your application.
  5. PayPal will then run a check with your credit file to ensure that all the information you’ve provided is accurate and then decide whether to offer you any credit or not.
  6. Choose to accept or reject their offer to you.

Before you apply for PayPal credit you need to be aware that it will leave a hard search on your credit file whether you are successful or not. This could affect your ability to apply for other credit in the near future.


To conclude, turning PayPal Credit into cash is possible through the loophole discussed above – like changing your name on a PayPal account, it’s a bit tricky.

A few quick points to remember before going ahead with this method, though:

  • There may be better credit options available to you such as interest free credit cards or money transfer credit cards.
  • Credit shouldn’t be used haphazardly, think about whether you really need it.
  • The trace that applying for PayPal credit will leave on your credit file could affect other credit applications.

Getting a Paypal Credit account isn’t a guarantee, but for some people it may be worth doing if you need a cash advance. And if you need to use PayPal credit, then it may be worth applying.

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Andy is a Professional Content Editor with expertise in a whole host of areas (or so he tells us anyway). His main interests are sports, tv/film and social media. He has reviewed over 100 apps so far for Apps UK.

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