PayPal credit
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Ask PayPal why you were approved. No one can answer on behalf of PayPal.
As you learned, just because you are approved does not mean that you can use PayPal Credit for all purchases and amounts. There are a lot of security reviews for each purchase. When you and the purchase meet all product and security measures you will be presented with an option to use PayPal Credit.
Actually, there was no need to apply for PayPal Credit as it would have popped up on it's own when your situation and purchase met the requirements.
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It could be the item not qualfied or your recent credit history or just Paypal has overextended credit for the day,week or even hour.
It is not like you bank or credit card credit.
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