Paypal Smart Connect Cash Advance Loophole

[linux007969]

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@kimmiller112 wrote:

Not really a loophole as Paypal is just a way of paying people for goods/services/gifts, including yourself if you have a second Paypal account, as long as someone is paying that fee.  I have done this with Bill Me Later, and like already mentioned, is a hidden tradeline.  But this is a  good subject to bring up as not everyone is familiar with this, unless you do a lot of buying or selling using Paypal as the payment source - it's good to keep in mind for an emergency-type situation where you may need cash fairly quickly.

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Thanks for agreeing with me.

I don't really care or worry about needing a hidden tradeline to hide my utilization cuz i want to build out my credit and show my creditors that i can charge alot and pay it off in full or in 2 or 3 payments depending on the balance owed. I want to show them i can handle a larger credit iine in the future. 

I do have an AMEX NPSL Green Charge card that wont factor into my utilization but i gotta be careful cuz i've read it can show high balances that some creditors do not like to see all the time.

I'm just doing what i can to build good credit and keep my accounts active and in good standing.

[youngandcreditwrthy]

I knew about this! Pretty sure I can use my Paypal MC the same way!!!:-) my highest limit card! :-D

I def'ly use credit cards as a cash flow tool! That is what they are there for!! Lol

[linux007969]

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@youngandcreditwrthy wrote:
I knew about this! Pretty sure I can use my Paypal MC the same way!!!:-) my highest limit card! :-D

I def'ly use credit cards as a cash flow tool! That is what they are there for!! Lol

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The only problem i could see is if i keep doing this paypal and my bank may start to question my activity and shut my accounts off till an investigation is complete. Sorta like an FR that Amex does to its members.

[Gammachu]

When I needed cash one time, I just used a balance transfer offer I got from citi and had them directly deposit the funds in my bank acct within one business day with 0% interest for 1 year. Paypal takes 3-5 business days to transfer to your acct. Good idea tho. By the way, I'm new to the forums and want to say hi to everyone and thanks for all the great information you guys give!

[navigatethis12]

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@linux007969 wrote:

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The only problem i could see is if i keep doing this paypal and my bank may start to question my activity and shut my accounts off till an investigation is complete. Sorta like an FR that Amex does to its members.

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Paypal will not do an investigation, they will just close the account. Allowing a customer to obtain a cash advance other than the traditional way is against every merchant agreement. Paypal would rather lose you and the fees than lose the ability to accept a card. I do not advice anyway to frequently do this. I did it maybe three times to liquidate a few thousand gift cards and got an email that if it continued, the accounts would be closed.

If you do not care about the Paypal account, then it is no big deal. If you use it for business, like me, do not attempt this.

[youngandcreditwrthy]

Haha funny thing... I typed in $10,000 to be paid as a "gift" to my school email and it was going to approve it! I canceled it of course!! Cash advances in general are a BAD idea unless it's a small one like from Discover Cash Over or Wmt Quick Cash! But emergencies do occur!

[john398]

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@youngandcreditwrthy wrote:
Haha funny thing... I typed in $10,000 to be paid as a "gift" to my school email and it was going to approve it! I canceled it of course!! Cash advances in general are a BAD idea unless it's a small one like from Discover Cash Over or Wmt Quick Cash! But emergencies do occur!

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I know you selected gift but I see a selection that says cash advance, so I actually tell paypal it is a cash advance, in my case less than $200

[linux007969]

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@john398 wrote:

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@youngandcreditwrthy wrote:
Haha funny thing... I typed in $10,000 to be paid as a "gift" to my school email and it was going to approve it! I canceled it of course!! Cash advances in general are a BAD idea unless it's a small one like from Discover Cash Over or Wmt Quick Cash! But emergencies do occur!

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I know you selected gift but I see a selection that says cash advance, so I actually tell paypal it is a cash advance, in my case less than $200

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When i tried to do that it would not let me use smart connect and instead it wanted to use my bank, so i had to "tell paypal it was a gift" instead so it would work. So far so good, paypal just finished confirming my bank account this morning and i should be all set for the $400 deposit to come through to my bank account real soon.

[bk510]

@linux

Does SC account come with a debit card?

i noticed this in your sig....

i just got approved for 300, but i applied for pp extra...

will this help my credit rebuilding mode since it doesnt report?

 will they raise my limit at some point?

Can i get it to upgrade to extra mc?

and speaking of a card....do i get a sc account card or debit or what ever?

[RonelTek]

Paypal Smart Connect issues you an paper card with your account number on it, to use the paypal smartconnect you will need to be issued an Paypal Debit card, that way you can link your Smart connect as an backup funding to your Paypal Debit card. it does report to all 3 reporting agencies and does get CLI's depending on GE. i've tried to upgrade my SC to a the paypal mastercard now that my score is much higher than when i app for the SC 3 years ago, but you would have to close your SC and re-apply,  so i figured its not worth it and lose my CL . YMMV...GOOD luck