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Paypal Smart Connect Cash Advance Loophole

Established Contributor

Re: Paypal Smart Connect Cash Advance Loophole


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.


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. Smiley Very Happy

Capital One QuickSilver MC $4.5K | Walmart $5K (CLOSED) | BOA Cash Rewards Sig $6.5K | BOA BBR $1K | Discover IT $13.5K | AMEX Sr Green Charge (NPSL) | PNC CashBuilder $1.5K | Paypal Extras MC $6k | PNC Auto Loan $20,038.75 | AMEX SimplyCash Biz CC $3k | BOA Cash Rewards Biz CC $3.5K | Chase Freedom Sig $8K | CapOne Spark BIZ Cash Visa Sig $5k | AMEX SimplyCash Biz CC $10k (LLC) | AMEX Everyday $2k | Sallie Mae WMC $6.4K | Citi Double Cash WEMC $6.2k | DCU Visa Platinum $1K (CLOSED0 | PSECU Visa w/PSL $8k | Chase Ink Cash BIZ Sig CC $3k | FNBO Biz Visa $9.5K | AMEX SimplyCash Plus BIZ CC $10k | Fidelity Rewards Visa Sig $4.7k | AARP Visa $500 |
Message 21 of 36
Senior Contributor

Re: Paypal Smart Connect Cash Advance Loophole

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
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 22 of 36
Established Contributor

Re: Paypal Smart Connect Cash Advance Loophole


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

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.

Capital One QuickSilver MC $4.5K | Walmart $5K (CLOSED) | BOA Cash Rewards Sig $6.5K | BOA BBR $1K | Discover IT $13.5K | AMEX Sr Green Charge (NPSL) | PNC CashBuilder $1.5K | Paypal Extras MC $6k | PNC Auto Loan $20,038.75 | AMEX SimplyCash Biz CC $3k | BOA Cash Rewards Biz CC $3.5K | Chase Freedom Sig $8K | CapOne Spark BIZ Cash Visa Sig $5k | AMEX SimplyCash Biz CC $10k (LLC) | AMEX Everyday $2k | Sallie Mae WMC $6.4K | Citi Double Cash WEMC $6.2k | DCU Visa Platinum $1K (CLOSED0 | PSECU Visa w/PSL $8k | Chase Ink Cash BIZ Sig CC $3k | FNBO Biz Visa $9.5K | AMEX SimplyCash Plus BIZ CC $10k | Fidelity Rewards Visa Sig $4.7k | AARP Visa $500 |
Message 23 of 36
Member

Re: Paypal Smart Connect Cash Advance Loophole

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!
Message 24 of 36
Valued Contributor

Re: Paypal Smart Connect Cash Advance Loophole


linux007969 wrote:


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.


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.

Message 25 of 36
Senior Contributor

Re: Paypal Smart Connect Cash Advance Loophole

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!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 26 of 36
Senior Contributor

Re: Paypal Smart Connect Cash Advance Loophole


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!
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
Message 27 of 36
Established Contributor

Re: Paypal Smart Connect Cash Advance Loophole


john398 wrote:

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!
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

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. Smiley Very Happy

Capital One QuickSilver MC $4.5K | Walmart $5K (CLOSED) | BOA Cash Rewards Sig $6.5K | BOA BBR $1K | Discover IT $13.5K | AMEX Sr Green Charge (NPSL) | PNC CashBuilder $1.5K | Paypal Extras MC $6k | PNC Auto Loan $20,038.75 | AMEX SimplyCash Biz CC $3k | BOA Cash Rewards Biz CC $3.5K | Chase Freedom Sig $8K | CapOne Spark BIZ Cash Visa Sig $5k | AMEX SimplyCash Biz CC $10k (LLC) | AMEX Everyday $2k | Sallie Mae WMC $6.4K | Citi Double Cash WEMC $6.2k | DCU Visa Platinum $1K (CLOSED0 | PSECU Visa w/PSL $8k | Chase Ink Cash BIZ Sig CC $3k | FNBO Biz Visa $9.5K | AMEX SimplyCash Plus BIZ CC $10k | Fidelity Rewards Visa Sig $4.7k | AARP Visa $500 |
Message 28 of 36
Valued Contributor

Re: Paypal Smart Connect Cash Advance Loophole

@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?

 

 

 photo QS visa_zps7zokw2wl.jpg photo QS visa_zps7zokw2wl.jpg photo Venture One_zpsigvttrlz.jpg photo Sony Visa_zpsxoradr1b.jpg photo USC Reward_zpslcvjfxmq.jpg photo Penfed Promise_zpsdg1y2dw2.png photo NasaFcu_zpswac3zwcu.jpg photo America_zpsuwx8rzdm.jpg photo LA-Kings-card_zpslbkyeqsz.png photo Barclay_zpslqv3i4tl.jpg photo BBVA_zpsqrhh7omh.jpg
 photo nfcu debit card_zpsprkh98jw.png photo nfcu visa siggy_zps0gjgyxje.png/ photo nfcu goReward card_zpsixhh1qcp.jpg photo sdfcu platinum card_zpspilihdiv.png  photo penfed reward cash_zpsyckxjc7y.png photo alliant visa_zpsaf4udfx0.jpg photo Citi Secured_zpsypzxi0jm.png photo fnbo platinum_zpsxfub6esb.png photo marvel-credit-card_zpsfkvc3ux5.png photo golden 1 CU_zpslhgxynjv.pngBurned AECitiChase
Message 29 of 36
Member

Re: Paypal Smart Connect Cash Advance Loophole

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

Message 30 of 36