In the world of online credit cards, there are many different options at a shopper’s disposal. Paypal has been a leading name in the online shopping world for many years now, so you would think that Paypal would have a competitive lease on the credit card situation. They have two different offers for shoppers: the Paypal Extras Mastercard and the Paypal Smart Connect Card. Now, GE Capital Retail Bank, the backer of both of these cards, can be rather picky with credit histories, so some people may not qualify for the Mastercard. The other option, the Paypal Smart Connect Card, is an almost laughable offering designed to snatch up the rest of the shoppers that do not have excellent credit histories.
Paypal Smart Connect Card Facts
As always, shoppers need to be wary. They need to research options before they commit to any one credit card. As such, most shoppers should be careful of lunging for this Paypal Smart Card without giving it some thorough investigation. This card is not a card at all, but is instead a credit line that is attached to your Paypal account. This is significant because it means that you can only use this credit line for purchases at stores that accept Paypal. Thus, this is primarily an online credit line. So, there will be no restaurant or gas station purchases with this credit line. On a brighter note, there is no annual fee though.
Aside from the limited utility, the Paypal Smart Card also has the highest interest rate I have ever seen, as it packs a wallop with a 26.99% interest rate! This is simply ridiculous! The normal Paypal Smart Card credit line seems to be about $600, so there isn’t much money in play here. Still, however, if you would utilize the full $600 in credit and then not pay it off within a month, you could be stuck with over $150 in interest! This is simply unacceptable for anyone that is serious about finding a good online credit card.
On top of the horrible APR, most people come away from the Paypal Smart Card with nothing but complaints. GE Capital and Paypal seem to have trouble with differentiating between the standard Paypal account and the Smart Card. Shoppers report all sorts of problems with charges being applied to the incorrect account, which in turn leads to fees and long conversations with outsourced customer service representatives.
Paypal Smart Connect Card Review and Verdict
For the sake of sanity, the Paypal Smart Card should be avoided. This credit line is limited in scope, extremely expensive, and little more than a cash in on those desperate enough to sign up for the offer. It also features horrible customer service. In all honesty, however, most (if not all) credit lines like this one have about the same level of APR. The key is to pay it off every month. If this is your plan and you can deal with the customer service, then, by all means, get this credit line. However, if you are looking something that is a bit more dynamic, look elsewhere. The official Paypal Smart Connect Card FAQ can be found here.