Paypal Credit or Financing CC?

[Anonymous]

Hi,

for the longest time I've been getting mails in my inbox that I'm preapproved/qualified to apply for Paypal Credit (I've been a Paypal user for like forever). It is tempting to actually apply to have the 0% financing option in case I need it. I'm not a big fan of financing things, but it's always nice to know to have the option if necessary (like, if I need to buy something bigger, unexpectedly. And yes, I know that I can use Paypal only online). I already have two 0% deferred interest CCs (Apple and Goodyear), but they're restricted to purchases for those specific outlets (so is my husband's Carecredit). I was wondering if it's worth getting Paypal Credit and what would be possible downsides. On the other hand, but financing CCs are out there? Last time I checked I had a CS of around 740.

Thanks for any input

[kilroy8]

I would say wait and see how things develop. Synchrony just bought PayPal Credit from Comenity - they immediately jacked up the interest by 3%.

What really has people worried is that PayPal Credit has always been a "hidden" line of credit that didn't report to the credit bureaus, unless you were delinquent. Now that Sync has it, maybe it will start to report as a high utilization line and tank your scores.

I wouldn't recommend jumping in just now - wait and see what develops.

[fuzzle]

Blispay is an option: some are denied for no reason or get a useless credit limit, but it turns out well for some people too

[UpperNwGuy]

I ignore all communications from PayPal that mention credit.  I use PayPal purely as a payment mechanism.  I get my credit from mainline banks and credit unions.  I never use the credit card option when paying with PayPal.

[AverageJoesCredit]

UNG, not sure how your post relates to OP.

OP, PayPal credit can be useful for the 6 months 0% apr on purchases over $99. Just know now you would have to make a minimum payment unlike before with Comenity but still a nice feature to have.

We still dont know if it will remain hidden but should you choose to go for it, I wish you best of luck

[Anonymous]

Thank you for your helpful input.

We already have a Synchonry CC (Carecredit) and no bad experience with it. So, the only concerns with PP credit now being Synchrony is that it might not be a hidden line anymore (and thus potentially reporting high utilization when credit maxed out?) and that I'd have a minimum payment (as to no minimum payment for PP credit before)? Or are there other concerns?

That doesn't sound too bad, to be honest, and basically like any other financing CC. Or am I missing something?

What other CCs would there be? Discover it?

How hard was/is it to get PP credit? CS around 740, but had several hard pulls in the last half year (the last in March). Two loans and I think 4 CCs on my name (FirstBankCard, Barclay, Amazon Prime Rewards, Goodyear - Barlcey and Goodyear which I use to "finance" things and paid minimum or more than minimum, the others I use for day-to-day things, always pay in full). History approaching 3 years. Never late, no other badies.

[Anonymous]

Any other thoughts?

[Anonymous]

It's not a 0% financing alternative, but Synchrony does also issue the PayPal-cobranded 2% Cashback Mastercard, which they launched last year and which I'd recommend over their PayPal Extras Mastercard. It's a straight 2% cash back on all purchases, with the proviso that rewards have to be redeemed into your PayPal account from which you can then transfer or redeem at your option. The card has a three-tiered APR structure depending on your overall credit profile. It doesn't have a lot of frills, but I got it last month with a $6K SL and like it so far; PayPal will load your PayPal account immediately upon card approval with a temporary SL that you can use to make purchases until the card itself arrives in your mail and is activated so that you can get the full CL.