if I make a payment using paypal will it take my paypal balance or from my credit card?
if you use paypal then paypal.
I think there is a option in PayPal settings to set your primary payment method - to use credit/money from your PayPal balance or from CreditCard.
then if my balance is insufficient, the payment will be directed to the registered credit card on the paypal account?
I think that is a question for PayPal support (or just try to Google) - how the PayPal works - will they use your Balanace + rest from the CreditCard or they will force you to use all just from CreditCard.