Using Credit Cards Listed with Paypal to Pay for Online Orders and just wondering...

[IncrsCredScore]

if this works for increasing my credit score. My goal is to increae my FICO credit score and iif paying through Paypalo doesn't help to better my score, I will stop paying through Paypal

[kittywitty]

do you mean the paypal card thats linked to your paypal account. if so that won't help at all. if it did i would have a great score but no i have a lousy score. lol

[kittywitty]

oh do you mean a credit card that is linked to your paypal account? if so it ill be no different then using your credit card.

[SunriseEarth]

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@IncrsCredScore wrote:

if this works for increasing my credit score. My goal is to increae my FICO credit score and iif paying through Paypalo doesn't help to better my score, I will stop paying through Paypal

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It's a CC transaction, so it counts as use.  However, use of your CCs in and of itself won't necessarily improve FICO scores.   I'd really suggest taking a read through the FICO scoring forums to see how the FICO scores are determined.  

(edited: typo)

[takeshi74]

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@IncrsCredScore wrote:

if this works for increasing my credit score.

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No impact either way.  See also:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Paypal doesn't factor into any of those.  As staed above you're really just using your credit cards.  If you want to increase your score then work on the factors in the link.

[IncrsCredScore]

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@kittywitty wrote:

oh do you mean a credit card that is linked to your paypal account? if so it ill be no different then using your credit card.

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I mean the different credit cards I have linked to PayPal.

[IncrsCredScore]

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@SunriseEarth wrote:

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@IncrsCredScore wrote:

if this works for increasing my credit score. My goal is to increae my FICO credit score and iif paying through Paypalo doesn't help to better my score, I will stop paying through Paypal

---

It's a CC transaction, so it counts as use.  However, use of your CCs in and of itself won't necessarily improve FICO scores.   I'd really suggest taking a read through the FICO scoring forums to see how the FICO scores are determined.  

(edited: typo)

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Everything I have read here has led me to believe that 1) I should have credit cards (I had none before) and 2) using the credit cards judiciously having only up to 8% usage at cut off date.  I have only two credit cards; however, having used them my credit score with FICO has definitely increased.  So I must disagree that having credit cards and using them reasonably will not improve FICO scores.

[SunriseEarth]

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@IncrsCredScore wrote:

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@SunriseEarth wrote:

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@IncrsCredScore wrote:

if this works for increasing my credit score. My goal is to increae my FICO credit score and iif paying through Paypalo doesn't help to better my score, I will stop paying through Paypal

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It's a CC transaction, so it counts as use.  However, use of your CCs in and of itself won't necessarily improve FICO scores.   I'd really suggest taking a read through the FICO scoring forums to see how the FICO scores are determined.   

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Everything I have read here has led me to believe that 1) I should have credit cards (I had none before) and 2) using the credit cards judiciously having only up to 8% usage at cut off date.  I have only two credit cards; however, having used them my credit score with FICO has definitely increased.  So I must disagree that having credit cards and using them reasonably will not improve FICO scores.

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That isn't what I said, however.   What I said is that using a CC in and of itself will not necessarily improve a FICO score (i.e., if you ran up both CCs to a 90% balance and let those post on your statement, your scores would NOT be helped).   Now what you have mentioned is far more specific.   You have stated that using your CCs so that less than 8% of the CL posts at statement close has improved your FICO scores.   So let's work with those specifics...

UTIL is one of the biggest factors in FICO scoring.   For optimal scoring, overal UTIL should be <10% (but more than 0%) and UTIL on each CC should be less than <10%.   However, the amount of accounts with balances is also a factor.   If you're looking to optimize with two CCs, you should have one report a balance of <10% of the CL and the other should report at a zero balance.  

Whether PayPal or other transactions gets you to that goal really doesn't matter, however.  

[IncrsCredScore]

Thank you.

[taxi818]

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@SunriseEarth wrote:

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@IncrsCredScore wrote:

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@SunriseEarth wrote:

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@IncrsCredScore wrote:

if this works for increasing my credit score. My goal is to increae my FICO credit score and iif paying through Paypalo doesn't help to better my score, I will stop paying through Paypal

---

It's a CC transaction, so it counts as use.  However, use of your CCs in and of itself won't necessarily improve FICO scores.   I'd really suggest taking a read through the FICO scoring forums to see how the FICO scores are determined.   

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Everything I have read here has led me to believe that 1) I should have credit cards (I had none before) and 2) using the credit cards judiciously having only up to 8% usage at cut off date.  I have only two credit cards; however, having used them my credit score with FICO has definitely increased.  So I must disagree that having credit cards and using them reasonably will not improve FICO scores.

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That isn't what I said, however.   What I said is that using a CC in and of itself will not necessarily improve a FICO score (i.e., if you ran up both CCs to a 90% balance and let those post on your statement, your scores would NOT be helped).   Now what you have mentioned is far more specific.   You have stated that using your CCs so that less than 8% of the CL posts at statement close has improved your FICO scores.   So let's work with those specifics...

UTIL is one of the biggest factors in FICO scoring.   For optimal scoring, overal UTIL should be <10% (but more than 0%) and UTIL on each CC should be less than <10%.   However, the amount of accounts with balances is also a factor.   If you're looking to optimize with two CCs, you should have one report a balance of <10% of the CL and the other should report at a zero balance.  

Whether PayPal or other transactions gets you to that goal really doesn't matter, however.  

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Exactly. its not the usage. in itself. its the total utilization. 1 card with 0 balance . other card 10 percent or less will do it. Im started to think the closer you can get to 1 percent on that 1 card is given you all the points available in that catagory.