So, you are looking for an easy way to make purchases online. You want a payment option that is cheap, upfront on fees, and accepted at many online retailers. If you were to visit Paypal, you would be inundated with a myriad of advertisements about their Paypal Extras Mastercard. After seeing this advertisement is everywhere on the site, some people might be tempted to consider it the payment source they were hoping to find. Do not be fooled. There are plenty of reasons why you should not apply for the Paypal Extras Mastercard.
Paypal Extras Mastercard Review and Facts
One of the main problems with this credit card is the fact that Paypal is not even close to upfront and honest about the fees, interest rates, or points system that are attached to it. When you read the terms page, it is basically a jumbled mess of numbers and crudely written rules. There are basics that everyone should know about a credit card before they accept it: which financial institution backs it, the fees, the APR, and what kinds of benefits the card may have.
With the Paypal Extras Mastercard, these important aspects are hidden for a reason: The card is not competitive at all. The card is backed by GE Capital Retail Bank, an entity that is rather notorious online for offering credit cards for all sorts of sites, whether small or large. There is not anything specifically shady about them, at least over the standard amount of dishonesty that most credit card companies have. As for fees, the Paypal Extras Mastercard does not have an annual fee, though it does have fees for balance transfers, late payments, and the like (as any card will have). So, basically, if you utilize this card for the standard purchasing process, you will not be charged any fees. So far, this card is okay.
The APR, however, is where the Paypal Extras Mastercard falls apart in competition. This card has an enormous interest rate of either 19.99% or 23.99%! This is massive, and is basically a giant “no” to applying for this card. Depending on your credit history, you will be assigned one rate or the other, though it seems that most people end up with the higher one, even if they have excellent credit.
If the APR were not bad enough, the Paypal Extras Mastercard also comes with a points system that is extremely vague and inferior to other credit card offers. The basic layout is that you get one point per dollar on normal purchases, two points per dollar on Paypal and Ebay purchases, and three points per dollar at restaurants and gas stations. This sounds relatively normal, but the information that is missing in action is how much each of these points is worth. After all, each point could be worth just about anything. Who knows? With the Paypal Extras Mastercard, however, each point adds up to only between $0.0006 and $0.0083 per point! This abysmal amount of value is simply shameful, and gives you almost nothing in return for your loyalty.
Paypal Extras Mastercard Competition
There are hundreds of different credit cards and credit lines out there that can be used for online shopping, and most of them are not great. Most of them, for example, have very high interest rates. However, especially if you are looking to finance a larger purchase with credit, the Paypal Extras Mastercard is definitely not the card to access. If you cannot pay the balance off within the month, you could be stuck with almost a quarter of the purchase price in interest! So, the wise shopper will research other cards before stumbling into Paypal’s offering.
One other card that would be a better offering is the Amazon Rewards Visa card. While it is not light years ahead of the Paypal Extras Mastercard, it is a good step up from that horrible offering. It features a point system that is a little better than Paypal’s, where 5000 points, instead of 6000 points, will get you a $50 credit. It also has a lower interest rate of 14.24%, though those with worse credit may get stuck with 19.24% or 22.24%. I personally have one of these cards, and, with an excellent credit rating, I had no issues getting the lowest rate. Lastly, it is backed by Chase Bank, so the backer is a little more well-known than GE Capital.
This is just one other credit card offering that simply better across the board, even on the higher end of APR. Because of this, the Paypal Extras Mastercard should only be a shopper’s last resort. It is too expensive, gives very little back, and is extremely vague in all its fine print. The bottom line is that shoppers need to research before applying, as this will always pay off in the end. If you want to see the official FAQ on the Paypal Extras Mastercard you can see it here.