Re: PayPal CREDIT / SYNCHRONY Info !!!

outofcredit · ‎05-07-2018

@DaveInAZ wrote:
@coldfusion wrote:
@Credit_hawk wrote:
I noticed some on here and PayPal’s Facebook have mentioned their interest rate will be increasing to as much as 26%.

How were you notified? I posted my letter that I received from PayPal on this thread and it never mentioned a rate increase. Did they send out two letters? Does this mean it’s not a blanket increase for everybody but rather it’s based on your credit factors and some will retain the 19.99%?
FWIW I got the same letter you did - 19.99% as quoted on the first page.

I got the same letter, but my APR was raised from 19.99% to 25.49%. Doesn't bother me, I would never pay Comenity's 19.99%, and sure as heck will never pay Synch 25.49%. My TU Fico is around 715, I'm thinking the increase may be because I already have $28k CL between Walmart, Lowes & PayPal 2% MC and my Paypal Credit CL is $4k. I really don't want a 4th credit line with Synchrony, but I'll see what happens.

Got my letter today and like Dave and AJC, my APR is being raised from 19.99% to 25.49% for transactions made after 7/15/2018. My current APR of 19.99% will continue to apply to transactions made on or before 07/15/2018. Something else I found interesting and wasn't quite sure what it meant, especially for those of us with both the Paypal 2% MC and the Paypal Credit (BML) line is the last paragraph titled "Clarification for existing customers." It states, "If you have an existing Paypal Credit account and are making a purchase you agree that if we identify your existing account during any subsequent Paypal Credit application, your purchase will be charged to your existing account and a new account will not be opened." Can someone clarify for me what they are saying? Could they possibly mean that they may at some point combine the two accounts, Paypal 2% MC and Paypal Credit? I'm confused whether both payment options will still be linked to my actual Paypal account.

Instead of waiting for the storm to pass, I've learned to dance in the rain.

Anonymous · ‎05-07-2018

@Anonymous
I hope this is true. Im MAX to my Paypal Credit limit and enjoyed hidden TL and 6 months interest free.. Cross my fingers!
My SO has a Paypal Credit since 2008 and received the letter notifying about the migration. We called Paypal to inquire whether Synchrony will report Paypal Credit as a new TL after the transition. And a nice lady named Amber said that they have brought that topic up during their meetings, and that at this time, they are still waiting on management to come to a decision whether this product will report to the CRA or will remain as a hidden TL. She said that at this time, there are no changes to the it's current features, and that it is currently still a hidden TL and will most likely remain that way even after Sync takes over, and in the event that they do decide in future, to start reporting, a notice or a letter will be mailed out to the account holders notifying them of the change. She said that apart from the new terms in place for the 6 mos. payment plan (which now requires a minimum payment) everything else will remain the same.

I called in today and got exactly the same as above...... The only other info was when I asked her why I haven't recived my letter yet, she relied "they are being sent out in batches". So I guess that's the case so they don't get hammered with all the calls on the same week.

Credit_hawk · ‎05-07-2018

For me, stripping the no payments for 6 months over $99 is as big a deal as if the tradeline hits our reports.

I haven’t even had this tradeline a year and I was stuck between applying for the more usable Blispay with no payments no interest anywhere for $199 or more or the more quirky but still useful PayPal that you could only use online but offered a hidden TL ontop of 6 months no payments, 0% interest.

It’s already a dud as I have cards I can use anywhere with 0% interest that require minimum payments and the only thing that separates PayPal from a more universal credit card was no payments and the hidden TL. Now I’ll be first to admit I’ve not used the feature much and prob won’t much but it’s nice to have because I would use it ultimately and I have.

If they report it, I won’t close it, I don’t believe in closing cards. I choose them carefully. But I will open a Blispay. It would mess up my 2 year’s streak of not opening a card and kill my AAoA but if PP reports it’s reset anyway.

BTW, just my luck, I applied for PayPal Oct ‘17 and the news of the sale to Sync broke Nov. ‘17!

FICO- Experian: 797, TransUnion: 781, Equifax: 804 (Updated Monthly)

JustcallmeTM · ‎05-08-2018

@Credit_hawk wrote:
For me, stripping the no payments for 6 months over $99 is as big a deal as if the tradeline hits our reports.

I can understand where your coming from but that no payment for 6 months on an credit line that reports is not optimal. I've had Blispay since 2016, I used it and went ahead with making no payments to see what happens during those 6 months on a reported account.

My end results was ZERO CLI from Amex accounts since I opened that card. The answer I get is "there is one or more accounts that has not been paid in x amount of months", my other balances are BT's so I knew it was my Blispay. I cleared it off and tried the Blispay again months later to test it again and I get the same results back from Amex. So far it's only Amex that has done that since they use Experian mostly.

If one doesnt want to make payments during those initial 6 months on a Blispay card then your taking your own risk on what other creditors who use Experian reports think. In the end it's always a YMMV.

Anonymous · ‎05-08-2018

Got my letter last week, APR stays at 19.99% according to it.

I've had a flurry of activity on my CR since October of last year after my credit basically lying dormant for a decade. I added 7 accounts from Oct-December last year(including the PP account) and just took out a new car loan in the last few weeks that has yet to report. My AAoA sits at 2.7y, but that will go down once my car loan reports, so I have no intention of allowing the PP account to report as a new TL come July. If letters will go out beforehand if this happens, fine I can sit back and wait but how much trust can you put in what CSRs tell you over the phone?

My main concern though is Synch exposure. I currently have the Amazon store card as my only account with them that opened in October last year with a $1200 SL and has since been increased to $5000. My PP account was opened in December with a $5000 SL, so once Synchrony takes over, that's $10,000 of exposure with them on a short file.

My file is clean and I pay all accounts in full each month with the exception of the PP account where I have around $1000 in interest deferred charges that I'll go ahead and pay off before July. My FICO8s are all in the 750 range. I'm just concerned about having both the Amazon and the PP Credit accounts closed when Synch takes over due to over exposure. Not sure if I'm being unnecessarily anal about it or if it's a legitimate concern and if I should just go ahead and close the PP account? I use both the PP and Amazon accounts regularly. What to do, what to do....

Anonymous · ‎05-08-2018

I also received the letter notifying me of the switch to Sync. What I'm upset about is the potential for this open account to be no longer hidden and or become new with no clarification from either parties. I still have a large balance that cannot be paid right away so I would still need to make payments. If I close this account now with Commenity would I still be making payments to them or would they still transfer the closed account to Sync? If it goes to Sync as a closed account with a balance could they start reporting it. Also, I have a freeze with all 3 bureaus and since PayPal Credit has never had a tradeline, is it possible that if Sync tries to create a tradeline that it could be blocked via the current freeze? I know current creditors that have established a tradeline before the freeze can still access my file and make tradeline changes.

Again, this is a bit frustrating and really want to keep this tradeline hidden just like everyone else does.

Anonymous · ‎05-08-2018

@JustcallmeTM wrote:
@Credit_hawk wrote:
For me, stripping the no payments for 6 months over $99 is as big a deal as if the tradeline hits our reports.

I can understand where your coming from but that no payment for 6 months on an credit line that reports is not optimal. I've had Blispay since 2016, I used it and went ahead with making no payments to see what happens during those 6 months on a reported account.

My end results was ZERO CLI from Amex accounts since I opened that card. The answer I get is "there is one or more accounts that has not been paid in x amount of months", my other balances are BT's so I knew it was my Blispay. I cleared it off and tried the Blispay again months later to test it again and I get the same results back from Amex. So far it's only Amex that has done that since they use Experian mostly.

If one doesnt want to make payments during those initial 6 months on a Blispay card then your taking your own risk on what other creditors who use Experian reports think. In the end it's always a YMMV.

I dont think Amex really cared if you have a balance on other creditor's accounts. There's more than just a balance on other accounts such as have you have any high balance or maxxed out on one card? Too many inquries? As long you pay on time with other creditors, Amex would not care. I have balances on other cards and still get CLI with Amex. Did you know that CLI with Amex is soft pull and looking at your own Amex payment history with them. Have you paid in full every time with Amex, that's also helped into getting larger CLI's.

Adkins · ‎05-08-2018

@Anonymous wrote:
Got my letter last week, APR stays at 19.99% according to it.

I've had a flurry of activity on my CR since October of last year after my credit basically lying dormant for a decade. I added 7 accounts from Oct-December last year(including the PP account) and just took out a new car loan in the last few weeks that has yet to report. My AAoA sits at 2.7y, but that will go down once my car loan reports, so I have no intention of allowing the PP account to report as a new TL come July. If letters will go out beforehand if this happens, fine I can sit back and wait but how much trust can you put in what CSRs tell you over the phone?

My main concern though is Synch exposure. I currently have the Amazon store card as my only account with them that opened in October last year with a $1200 SL and has since been increased to $5000. My PP account was opened in December with a $5000 SL, so once Synchrony takes over, that's $10,000 of exposure with them on a short file.

My file is clean and I pay all accounts in full each month with the exception of the PP account where I have around $1000 in interest deferred charges that I'll go ahead and pay off before July. My FICO8s are all in the 750 range. I'm just concerned about having both the Amazon and the PP Credit accounts closed when Synch takes over due to over exposure. Not sure if I'm being unnecessarily anal about it or if it's a legitimate concern and if I should just go ahead and close the PP account? I use both the PP and Amazon accounts regularly. What to do, what to do....

I think you're fine on your exposure. I wouldn't worry about it.

Last HP 08-07-2023

K-in-Boston · ‎05-08-2018

@Anonymous wrote:
I called in today and got exactly the same as above...... The only other info was when I asked her why I haven't recived my letter yet, she relied "they are being sent out in batches". So I guess that's the case so they don't get hammered with all the calls on the same week.

Thank you. I was wondering why I hadn't received one yet. Guess that's what I get for changing my surname to Zopittybop-bop-bop.

Anonymous · ‎05-08-2018

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Hey all Mazumps!

Have not posted probably in 1.5 years, but I wanted to post and let everyone know that I spoke to a PayPal Creidt Superviosr on Friday, who informed me that they will still NOT BE REPORTING this LOC to credit even with Synchrony's takeover. Interest rate is changing, and no more "no minimum payment" promos, because, well, Synchorny is a FLART!

If anyone cares to follow this up and call as well, let me know if you get the same answer! But so far, I was told that PayPal will still be a hidden TL - here is HOPING !!!
I hope this is true. Im MAX to my Paypal Credit limit and enjoyed hidden TL and 6 months interest free.. Cross my fingers!
My SO has a Paypal Credit since 2008 and received the letter notifying about the migration. We called Paypal to inquire whether Synchrony will report Paypal Credit as a new TL after the transition. And a nice lady named Amber said that they have brought that topic up during their meetings, and that at this time, they are still waiting on management to come to a decision whether this product will report to the CRA or will remain as a hidden TL. She said that at this time, there are no changes to the it's current features, and that it is currently still a hidden TL and will most likely remain that way even after Sync takes over, and in the event that they do decide in future, to start reporting, a notice or a letter will be mailed out to the account holders notifying them of the change. She said that apart from the new terms in place for the 6 mos. payment plan (which now requires a minimum payment) everything else will remain the same.

Just to follow up as I called in this morning.

@1. Hidden Tradeline - Rep stated that Paypal Credit tradelines will still be hidden for now as @Anonymous mentioned earlier in this thread when he called in. If Sync does indeed want to start reporting in the future, then customers will receive a letter of notification of said reporting change.

2. Account closures - Rep stated if you close a account with a balance now, payments will still go to Comenity until July 2nd. After July 2nd, they then go to Sync. I was hoping Comenity would do what they did with the old Newegg Preferred accounts where they closed them and anyone who had a balance would still be paying Comenity which of course still kept the closed account hidden. Oh well.

But yeah, I'm more concerned about Sync making the tradeline no longer hidden more than anything else. Why couldn't this happen like next summer or 2020..ugh.

The Synchrony Effect