PayPal's debit card spends money from your PayPal online balance, and if more money is needed to make a purchase it will come from your regular bank account. It is important to remember that it is like writing a check, all the money is taken at once. It will not contribute to your credit score because there is no borrowing and there is no monthly payment.
However, PayPal's other card is a real credit card. Its intent is to serve as a backup funding source when you use PayPal to buy something, but you can use it elsewhere too. Every purchase you make is borrowed from the card's credit line (not from the PayPal balance), and you pay it back by writing a check for all or some of what you owe every month. Using and repaying this card will contribute to your credit score.
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