Iphone asks for password over and over, desktop itunes doesn't show credit

Long ago, $30 were put into my AppleID. While trying to make purchases on my Iphone 6, the phone asked security questions to verify my identity. As a result of putting random answers, the account was locked. Recently we made an effort to unlock the account, which worked. However now when we log in to the account again on the Iphone 6, it keeps asking for the password. No matter how many times it is entered, it asks again. If cancel is hit, it looks as if we logged in, except it doesn't show the $30 in credit.

Switching over to Itunes for Windows, we're able to log in, but the credit is no where to be found. If we look in the payment options, it shows the paypal account. If we click "edit" it tells us that we need to validate information on the paypal, despite us simply wanting to use apple credit from gift cards.

The gift cards are now disposed of, for as stated before, they were entered long ago. (Most likely during Winter of 2014) and they were successfully entered. Any ideas on how to fix...

The Iphone 6 constantly asking for a password even after entered correctly (There is no download in the desktop itunes if you think that's the case)

The PayPal account needing to be validated for apple purchases despite us not wanting to use paypal any longer

How to even check if the credit is still in the account after being re-opened.