Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Loans Can You Borrow Money From PayPal? A Look at Your Options and the Best Alternatives Updated Jun 27, 2025 6-min read Written by Timothy Moore, CFEI® Written by Timothy Moore, CFEI® Expertise: Bank accounts, credit cards, taxes, insurance, personal loans Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget. Learn more about Timothy Moore, CFEI® You can borrow money from PayPal, but not as easily as you might through traditional cash advance apps. Instead, you can finance purchases with PayPal’s buy now, pay later option; pay online with a PayPal Credit digital line; or—new in summer 2025—make purchases online or in person with a PayPal Credit Card. The credit card opens the door to cash advances, but these are expensive. I highly recommend considering alternative options when you need cash fast. Table of Contents How can I borrow money from PayPal? Buy now, pay later PayPal Credit digital line vs. PayPal Credit Card Instant transfer Alternatives to borrowing money from PayPal Cash advance apps Same-day personal loans Payday alternative loans How can I borrow money from PayPal? There are three methods to borrow money from PayPal in the conventional sense: Buy now, pay later A credit line A credit card, with which you can get a cash advance You can also get instant money transfers when you’re paid via PayPal—which lets you “borrow” from PayPal to get your money earlier than you would otherwise. Let’s break down these methods: Buy now, pay later Buy now, pay later (BNPL) is a nascent form of repayment, wherein you purchase something on credit and pay it back over a short time period in small payments. Many financial technology companies (fintechs) have popularized the four-in-one repayment, where you pay 25% upfront and then make three more payments over a few weeks or months to pay your debt in full, plus interest. BNPL is becoming increasingly popular: According to a Nov. 2024 report from Statista, 40% of Americans have used some form of BNPL, and another 22% say they might in the future. If you make purchases online or in qualifying stores using PayPal, you might be able to take advantage of this payment method. PayPal offers: Pay in 4: Split your purchase of $30 to $1,500 into four interest-free payments over six weeks. Pay monthly: Choose either 3-, 6-, 12, or 24-month repayment plans for purchases from $49 to $10,000. The APR is 9.99% to 35.99%, though PayPal sometimes has 0% APR offers. PayPal’s BNPL offerings share a lot in common with the best buy now, pay later apps. But this is simply a form of financing a purchase, not borrowing cash like a traditional loan. If you want to borrow money from PayPal like a loan, this isn’t the option for you. PayPal Credit digital line vs. PayPal Credit Card Until recently, PayPal Credit referred to one offering: a digital line of credit. Approved borrowers could use this credit line for online purchases, then make minimum monthly payments to keep it in good standing. Like a personal line of credit or credit card, the PayPal Credit digital line had a high interest rate. In the summer of 2025, PayPal introduced its PayPal Credit Card, a Mastercard that earns 3% cash back on all PayPal purchases. Unlike the digital line of credit, borrowers can use the card online or in person. The credit card has the same high variable interest rate (30.39%). The catch? You can’t choose which you apply for—the credit card or the digital line of credit. There’s a single application—with a hard inquiry—and PayPal may approve you for one or the other. The credit card is the better option, with more payment flexibility and cash back. Plus, you can use the PayPal Credit Card for cash advances—the only true way to borrow money from PayPal. A credit card cash advance at an ATM allows you to borrow cash from your line of credit, but keep in mind: You pay that same interest (30.39%) on what you borrow. There’s a cash advance fee of either $10 or 5% of the cash advance, whichever is greater. In my opinion, if you have good to excellent credit, there are far better credit cards to apply for, with broader cash back (or points/miles) spend categories, as well as lower rates and fees. (For instance, the PayPal Credit Card charges 3% foreign transaction fees; there are plenty of great rewards cards without those fees.) And if you’re looking for a line of credit? I’d choose one of these best personal lines of credit over a PayPal Credit digital line, any day—even if you regularly pay with PayPal. Instant transfer If you get paid via PayPal and want to transfer the money to your bank, it can take a few days for the direct deposit to hit. But what if you want that money immediately? PayPal allows you to do instant bank transfers, for a fee (1.75%). While this isn’t borrowing money from PayPal, it’s a way to access your money several days early while PayPal and your bank coordinate the transfer. Think of it like PayPal spotting you the money until it actually hits your account. Alternatives to borrowing money from PayPal While it’s possible to borrow money from PayPal, it’s not really ideal in any scenario. Instead, consider an alternative. Cash advance apps The best cash advance apps let you get small amounts of cash (usually less than $1,000) in a matter of minutes. For instance, Earnin lets you borrow up to $750 per pay period ($100 per day), without any interest or membership fees. You’ll just pay $1.99 to $4.99 for instant transfers. Brigit’s instant advances are only $0.99, but you have to budget $9.99 for a monthly subscription. My take? You shouldn’t be paying a monthly subscription for a cash advance app, because it encourages you to use the app regularly to justify the expense (that’s why I prefer Earnin). Instead, think of a cash advance as a last resort—but if you need to use it, come up with a plan so you won’t have to use it the next time you’re strapped for cash. Same-day personal loans Another way to borrow cash quickly is to get a personal loan. Traditional banks and credit unions may take several business days to approve your application and fund your account, but the best personal loans come with same-day approval and same- or next-day funding. With personal loans, you can borrow a larger amount, often up to $50,000. However, interest rates can be as high as 36%, and there may be origination fees. SoFi is one of my favorite lenders; funds are often available the same day, and you can borrow between $5,000 and $100,000 (if approved). Payday alternative loans Many credit unions offer another product that doesn’t get enough, well, credit. Payday alternative loans (PALs) are small loans of up to $2,000, with a max interest rate of 28% and repayment terms up to 12 months. These are much safer than actual payday loans—you just need to be a credit union member to apply.