Why Is My PayPal Credit Declining?

If your credit/debit card is being rejected by PayPal with the message “The card you entered cannot be used for this payment.

Please enter a different credit or debit card number.” it might be due to one of the following reasons: You’ve exceeded your card limit with the PayPal system.

Why can’t I use my PayPal credit balance?

Don’t worry: the issue is often easy to fix. PayPal doesn’t allow recurring payments unless you have credit cards or bank accounts linked to it, and they need to have enough funds as well. Access your PayPal account and go to the “settings” section.

What happens if PayPal credit is denied?

If you reach your credit limit, PayPal might decline your purchase, or it might increase your credit line. It has no annual or application fees, and if you miss a payment, it doesn’t show up on your credit report.

Does applying for PayPal credit affect score?

PayPal Credit does report to the credit Bureaus and will affect your credit score. Late payments will be reported to Experian specifically. You should always consider improving your credit score first before applying. If you’re denied, you will get hit by a hard inquiry that will lower your score for 12 months.

Is there an issue with PayPal?

Problems with PayPal. In other words, PayPal isn’t a bank because it doesn’t call itself a bank. As a result, most states license PayPal as a “money service.” One of the most common problems encountered by PayPal users is the sudden and inexplicable freezing of their accounts.