Paypal Business Loan Rejected

[mksa21]

Hi There

Today i try to apply to an paypal business loan but i dont understand the reason why they reject me... Can someone explain me ?

"Thank you for your recent PayPal Business Loan request. We regret to inform you that after careful consideration, we were unable to approve your request at this time for the following reason(s):

Number of payments made on all personal accounts over last 3 months is too low"

What means that? I have never paid my debts late

[Drifter73]

I don't think it means you paid late. I think it means they felt you only paid the minimum, less than the other credit lines minimum payment amounts, or that you haven't paid down other lines of credit to a % they are comfortable  seeing.

Most lenders like to see more than the minimums being paid consistently.

[mksa21]

I still do not understand...

Until a month ago the reason for rejection seemed to be that I did not have a credit score with transunion (it seems that they check transunion and experian).

Now they changed the message and tell me that as a reason for rejection, but I still think I don't have a credit score with transunion (I don't know why but I have had the experian score for 2 months but transunion still doesn't give it to me).

Except for the month of December where my utilization % was 20% the rest of the months I barely had 3%.

At the same time their requirements are quite low

- Have generated $33,000 in the last year with your business.
- Have a FICO of 580 (I have 736)
- A business with more than 9 months (mine is 3 years old).

[Drifter73]

Transunion, you mean for a personal guarantee on the business loan? I dont think transunion has a business option.

If you don't have a paid account somewhere (subscription) to check your transunion and equifax scores, you could always get a free CreditKarma account, which provides those 2 for free for personal.

At least then you would know for sure if anything is reporting and what's being reported. 

[mksa21]

My problem is ... i just have an ITIN number so is difficult if you dont have an SSN verify this.

And yes ... Paypal business loan  need your personal credit score.... so not really sure why they told me that when my last 3 months my credit utilization was 1% - 3% and 20% .... or if maybe is because transunion dont have avalible yet my credit score anywhay this month my closing date is the day 17 and i will pay again the full amount..

[Drifter73]

Added note: while I do not use PayPal business loans, I do use PayPal Working capital loans backed by Webank.

I like those more, as they don't report to or check Credit scores. They base the loans off your PayPal revenue. If it's consistent each month for 6 months. They will approve your first working capital loan for up to $5k... though I think the max WC loan amount is $25k.

Each time a wc loan is paid off, your next loan max availability goes up with better terms, until you reach the $25k cap.

Is a WC loan an option for you?

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[mksa21]

No because i dont process my sales with paypal

[Drifter73]

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@mksa21 wrote:

No because i dont process my sales with paypal

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Curious, if you don't process any payments at all with a PayPal business account, why did you choose PayPal as your business lender instead of another institution (Potentially one you have business deposits with for internal leverage on a loan)?

[mksa21]

Paypal have the lowest requeriment and others you cant apply if you dont have an SSN ... and is difficult get a loan just with an EIN

[Drifter73]

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@mksa21 wrote:

Paypal have the lowest requeriment and others you cant apply if you dont have an SSN ... and is difficult get a loan just with an EIN

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With the following banks, you can open a business account with an ITIN:

• Alliant Credit Union
• Bank of America
• BMO Harris
• Charles Schwab
• Chase
• Citibank
• HSBC
• PNC
• TD Bank
• U.S. Bank
• Wells Fargo

Generally, banks that allow itin to open accounts also allow itin loans. Maybe check those out too for terms.