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Anybody else get an email about Paypal changing terms

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Valued Member

Re: Hidden TL ?


@MakingProgress wrote:

 

If you are managing this account in a positive manner, such as making payments on time, keeping util low, etc.  Then what is the advantage to it being a hidden tradeline?


I have some large purchases that are on a 24mo 0% promo that eat up about 70% of my util right now.  Why use your money when you can use theirs?  I'd prefer that NOT to show up, as a 70% util on a single tradeline can give you a nice black eye.

Message 51 of 106
Contributor

Re: Hidden TL ?


@Dilbert934 wrote:

@MakingProgress wrote:

 

If you are managing this account in a positive manner, such as making payments on time, keeping util low, etc.  Then what is the advantage to it being a hidden tradeline?


I have some large purchases that are on a 24mo 0% promo that eat up about 70% of my util right now.  Why use your money when you can use theirs?  I'd prefer that NOT to show up, as a 70% util on a single tradeline can give you a nice black eye.


Agreed. PPC is currently my most utilised credit line, precisely because using it doesnt affect my credit score. If that changes, i will most likely stop usong PPC altogether... 


 

Message 52 of 106
Regular Contributor

Re: Hidden TL ?


@MakingProgress wrote:

Seeing all the comments about PPC possibly starting to report has caused me to wonder.   Whats the big deal?

 

If you are managing this account in a positive manner, such as making payments on time, keeping util low, etc.  Then what is the advantage to it being a hidden tradeline?

 

If you have negative info that the advantage is obvious. 


The reason so many people like the hidden tradeline is equally obvious.  Regardless what the history of the "hidden" account might be, it does NOT affect the credit score.  Doesn't matter what the balance is, doesn't matter what the credit limit may be (relative to utilization), doesn't matter how old or new the account is (so it doesn't affect AAoA), etc.

 

High (hidden) utilization would be an advantage of any account should a consumer choose to go that route.  It would allow the consumer to over-use the hidden account and keep the balance lower on other reported accounts.

 

It is/was an option consumers have/had to manage their finances.  Nothing wrong with that.  I have a commercial credit card I use to make a lot of purchases. The fact that it doesn't show up on my credit is a huge advantage.

 

Generally speaking, in these days of "everybody knows everything about us," being able to do something w/o it being reported to the world is a good thing.

Message 53 of 106
Established Contributor

Re: Hidden TL ?

I received email communication last week. Same verbiage. I've been planning for this since last summer. I went all out and got it up to $5k and was carrying a heavy balance until January and I'm down to just a couple 12/24 month 0% and at 26% util and will have it paid off in 6.

 

No real point in having this anymore if it's not hidden. I'd rather get points somehwere else but having the hidden TL is nice.


Message 54 of 106
Member

Re: PayPal Credit going to Synchrony Bank???

So if I am understanding correctly, it will still be a hidden TL, with only payment history reporting? At least based on what CSRs have told people?

If so, I am totally fine with that. It still maintains the "spirit" of a hidden TL at least.
Message 55 of 106
New Member

Re: PayPal Credit going to Synchrony Bank???


@OverBlue wrote:
So if I am understanding correctly, it will still be a hidden TL, with only payment history reporting? At least based on what CSRs have told people?

If so, I am totally fine with that. It still maintains the "spirit" of a hidden TL at least.

That's what I was told over the phone, but I was told by someone here that it's not possible to report that way, so I'm not sure.

Message 56 of 106
Regular Contributor

Re: PayPal Credit going to Synchrony Bank???

From my experience, CSRs will say almost anything. They often do not know what's going on.

 

We must face the fact that we will not know until we know - that is, until we see what, if anything, shows on our credit after the summer.

 

Time to stop fretting about it.

Message 57 of 106
Valued Contributor

Re: PayPal Credit going to Synchrony Bank???

You think it might have to do with Venmo wanting to get into the credit card business which is owned by PayPal? https://www.pymnts.com/digital-payments/2019/venmo-paypal-credit-card/


My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC.
Message 58 of 106
Member

Re: PayPal Credit going to Synchrony Bank???

So I did a little digging, and learned that it probably is not helpful to read into the terminology of the emails that went out recently in regards to the credit reporting.

 

I found and read the updated Diners Club policy, which began reporting after that product's switch to Synchrony, and guess what it says in the Credit Reporting section:

 

"We may report information about your account to credit bureaus. Late payments, missed
payments or other defaults on your account may be reflected in your credit report."

 

I seems that this may just be Synchrony Bank's prefered phrasing for this, and that this hidden tradeline may be coming to an end. What confuses me is how the product will continue. How will CLIs work, and why would anyone want a no rewards account that needs to be maxed out to be used to its full potential? Maybe the risk outweighs the potential of losing all of the customers who have used it exclusively for the hidden TL.

Message 59 of 106
New Member

Re: PayPal Credit going to Synchrony Bank???


@OverBlue wrote:

So I did a little digging, and learned that it probably is not helpful to read into the terminology of the emails that went out recently in regards to the credit reporting.

 

I found and read the updated Diners Club policy, which began reporting after that product's switch to Synchrony, and guess what it says in the Credit Reporting section:

 

"We may report information about your account to credit bureaus. Late payments, missed
payments or other defaults on your account may be reflected in your credit report."

 

I seems that this may just be Synchrony Bank's prefered phrasing for this, and that this hidden tradeline may be coming to an end. What confuses me is how the product will continue. How will CLIs work, and why would anyone want a no rewards account that needs to be maxed out to be used to its full potential? Maybe the risk outweighs the potential of losing all of the customers who have used it exclusively for the hidden TL.


That's what I wondered too, and it would make sense based on what the CSA told me about only payments being reported, not balances or limits. That's apparently not legal based on the terms of the bureaus though. 

 

Regardless, I will PIF and close the account next month, I have no need for it without the benefit of using the hidden line and the 0% deals, and knowing I can never get a CLI without maxing out.

Message 60 of 106