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PayPal Credit 6 months no interest for Tax Payments

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K-in-Boston
Credit Mentor

PayPal Credit 6 months no interest for Tax Payments

Screen Shot 2020-05-15 at 3.50.35 PM.png

 

I hate to rehash the "no, Synchrony didn't close your accounts because you paid your taxes with it" debate, but just got this email.  For those penny-pinching, Pay1040 is a little cheaper (1.87% vs 1.96%) but PayUSATax is the only one of the 3 IRS-approved payment processors that accepts PayPal.

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NRB525
Super Contributor

Re: PayPal Credit 6 months no interest for Tax Payments

Reasonable deal. 2% fee, no rewards, but deferred interest for 6 months. 
Just be sure to pay everything, even the last penny to avoid interest for... what APR?

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 2 of 3
K-in-Boston
Credit Mentor

Re: PayPal Credit 6 months no interest for Tax Payments


@NRB525 wrote:

Reasonable deal. 2% fee, no rewards, but deferred interest for 6 months. 
Just be sure to pay everything, even the last penny to avoid interest for... what APR?


"For New Accounts: Variable Purchase APR is 25.49%."

 

Very good point.  Unlike a normal credit card promotion with 0% for 6 months, this is a 6 month promo with deferred interest.  So if you still owe even $0.01 of it at the end of 6 months, you will be charged interest from day 1, or $127.45 per $1000 originally paid!

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