topic Re: Effects of using PayPal Credit in General Credit Topics

Effects of using PayPal Credit

manateemark — Mon, 20 Apr 2020 18:08:23 GMT

Hello everyone,

I am looking to purchase some things online that will end up being ~$1000 and currently I only have CL's totaling $1750 across 3 cards with $1000 being the highest CL and I just started with my credit jouney in September. I am considering using PayPal credit to pay for this transaction. I haven't yet applied for a credit line with them, and I'm not sure if they would even approve me for that limit. I do have the money to pay for the transaction, but wouldn't mind spreading it across a few months and I know PayPal has a 0% for 6 month thing going on usually.

As of right now I only have credit cards in my mix. No car, home, or student loans. Would adding a PayPal credit line add to my current mix and how does utilization for a revolving credit line like that effect FICO scoring?

Thank you all.

Re: Effects of using PayPal Credit

Brian_Earl_Spilner — Mon, 20 Apr 2020 18:16:13 GMT

It works and reports like a credit card

Re: Effects of using PayPal Credit

Anonymous — Mon, 20 Apr 2020 19:37:38 GMT

As the other responded, it does report to the CRA like any other account. I have PayPal Credit and PayPal Mastercard but obviously the Mastercard is an actual credit card.

Re: Effects of using PayPal Credit

M_Smart007 — Mon, 20 Apr 2020 20:08:11 GMT

@manateemark wrote:
Hello everyone,

I am looking to purchase some things online that will end up being ~$1000 and currently I only have CL's totaling $1750 across 3 cards with $1000 being the highest CL and I just started with my credit jouney in September. I am considering using PayPal credit to pay for this transaction. I haven't yet applied for a credit line with them, and I'm not sure if they would even approve me for that limit. I do have the money to pay for the transaction, but wouldn't mind spreading it across a few months and I know PayPal has a 0% for 6 month thing going on usually.

As of right now I only have credit cards in my mix. No car, home, or student loans. Would adding a PayPal credit line add to my current mix and how does utilization for a revolving credit line like that effect FICO scoring?

Thank you all.

Reports like a credit card. Adding it would help with your aggregate utilization,

but you would take a hit to your AAoA and AoYA.

Re: Effects of using PayPal Credit

manateemark — Mon, 20 Apr 2020 20:12:01 GMT

Thank you all. I will not go with getting PayPal credit then. I'd rather get the 5% back from just paying with my Amex

Re: Effects of using PayPal Credit

nuohlac — Tue, 04 Aug 2020 13:28:27 GMT

@M_Smart007 wrote:
@manateemark wrote:
Hello everyone,

I am looking to purchase some things online that will end up being ~$1000 and currently I only have CL's totaling $1750 across 3 cards with $1000 being the highest CL and I just started with my credit jouney in September. I am considering using PayPal credit to pay for this transaction. I haven't yet applied for a credit line with them, and I'm not sure if they would even approve me for that limit. I do have the money to pay for the transaction, but wouldn't mind spreading it across a few months and I know PayPal has a 0% for 6 month thing going on usually.

As of right now I only have credit cards in my mix. No car, home, or student loans. Would adding a PayPal credit line add to my current mix and how does utilization for a revolving credit line like that effect FICO scoring?

Thank you all.
Reports like a credit card. Adding it would help with your aggregate utilization,
but you would take a hit to your AAoA and AoYA.

@M_Smart007 How have I missed out on this little gem. Is there anyway to get a SP approval? I'm trying to do this gardening thing at the moment.

Re: Effects of using PayPal Credit

coldfusion — Tue, 04 Aug 2020 22:30:06 GMT

@nuohlac wrote:
@M_Smart007 wrote:
@manateemark wrote:
Hello everyone,

I am looking to purchase some things online that will end up being ~$1000 and currently I only have CL's totaling $1750 across 3 cards with $1000 being the highest CL and I just started with my credit jouney in September. I am considering using PayPal credit to pay for this transaction. I haven't yet applied for a credit line with them, and I'm not sure if they would even approve me for that limit. I do have the money to pay for the transaction, but wouldn't mind spreading it across a few months and I know PayPal has a 0% for 6 month thing going on usually.

As of right now I only have credit cards in my mix. No car, home, or student loans. Would adding a PayPal credit line add to my current mix and how does utilization for a revolving credit line like that effect FICO scoring?

Thank you all.
Reports like a credit card. Adding it would help with your aggregate utilization,
but you would take a hit to your AAoA and AoYA.

@M_Smart007 How have I missed out on this little gem. Is there anyway to get a SP approval? I'm trying to do this gardening thing at the moment.

PayPal Credit? It's a HP for approval, SP for CLIs.

It used to be a gem when it was a Comenity product because if it was in good standing it was a hidden tradeline, nowadays it's mostly useful for the 6 month @0% for $99 purchases and longet term promos for $600+ spend. Regular APR is now quite high.