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Major Debt w/ PayPal Credit PLEASE HELP

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New Visitor

Major Debt w/ PayPal Credit PLEASE HELP

Hello everyone,

I am going to cut right to the chase here. I have roughly $4,000 of debt with PayPal Credit, and I cannot make the payments. I hit a massive financial snag that caused me to just about max it out along with all of my credit cards, which was roughly $3,800 in credit card debt. I would rather not get into the personal details as to why I hit such a massive financial snag, but I will just say that it involved a car accident, college tuition, my grandfather, and healthcare. I can still afford to make payments on all of my credit cards, but I cannot afford the PayPal Credit payments on top of everything else. I am now already going on 2 months being late on the payments. As of right now, I know that PayPal Credit does not report my account or the account's activity to any credit agencies, so my question is this: If I continue to not make payments on the PayPal Credit account, when it is/if it is sent to collections, will it affect my credit? If so, can you possibly tell me how bad it will affect it and how long?

Please and thank you to everyone that can assist me with this!
12 REPLIES 12
Frequent Contributor

Re: Major Debt w/ PayPal Credit PLEASE HELP

PayPal will report data to credit bureas when necessary, such as when you have delinquent accounts. Are you over 60 days late? Have you communicated with them at all about your issue? Many creditors will work with you reasonably as long as you're in communication with them. If you're under 60 days late you have a chance to keep things healthy....if you're over 60 a delinquent payment may be reported.

Message 2 of 13
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New Visitor

Re: Major Debt w/ PayPal Credit PLEASE HELP

I have just recently (last 3 days) went over 60 days late. I have talked with they, and I have informed them of the situation. Unfortunately, I informed them that I may not be able to afford the payment until around early September when my finances come back down to earth. All I received from them was a statement saying that they were making note of that. What else can I possibly do?
Message 3 of 13
Regular Contributor

Re: Major Debt w/ PayPal Credit PLEASE HELP


@NotACreditGuru wrote:
I have just recently (last 3 days) went over 60 days late. I have talked with they, and I have informed them of the situation. Unfortunately, I informed them that I may not be able to afford the payment until around early September when my finances come back down to earth. All I received from them was a statement saying that they were making note of that. What else can I possibly do?

Can you make any payment at all? When I've been behind on payments with them, an option pops up if you go into the "Make Payment" section that offers a few payment options to help you get back on track. I think mine was splitting up the minimum payment into 3 smaller monthly payments. It may be worth seeing if you can scrimp and save to gather that amount to prevent it from going to collections. 

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Message 4 of 13
Regular Contributor

Re: Major Debt w/ PayPal Credit PLEASE HELP

Is there any room on any of your cards to put things like your groceries or electricty on them and use that money for payments? if you dont make payments on all your cards they will go Chernobyl and your scores will tank. If they get turned over for collections it will affect your scores for 7 years. And as already mentioned...make sure you communicate with them to get through this. I let my cards go in 2009 and I didn't recover until 2016. I would do without eveything before I missed payments again.

EQ - 717 TU-724 EX -725>
Message 5 of 13
Legendary Contributor

Re: Major Debt w/ PayPal Credit PLEASE HELP

I assume that you have separately established a line of credit with Pay Pal, and are not simply using them as a conduit to passing charges on to your existing credit cards?

 

Pay Pal Credit is a separate line of credit which can be referred by them for collection, or they can sell the delinquent debt to a debt collector.

Once a debt collector has obtained assigned collection authority or has purchased the debt, they can report their collection to a CRA.

Pay Pal is not involved in any such reporting.

Thus, even if Pay Pal does not have a credit reporting agreement and does not report their account to any CRAs, that would not preclude any debt collector from doing so.

 

Continuing to make payments to the creditor wont preclude referral to a debt collector.

You remain delinquent on the overall debt, even if making payments, and the creditor can still secure collection assistance from a debt collector until the total delinquency is repaid.  

You can, as part of a repayment plan, include a separate condition that they agree not to refer to a debt collector as long as you continue to make the agreed payments.

Message 6 of 13
New Visitor

Re: Major Debt w/ PayPal Credit PLEASE HELP

Hello, I have run to the same situation as you. Has your account been sent to collections? Has someone bought your debt? Any info would help. Thanks 

Message 7 of 13
New Contributor

Re: Major Debt w/ PayPal Credit PLEASE HELP

I had the situation....you gonna be ok OP they will not report beciase they cant....they dont have your full ssn...i have owed them over a year and yet i see anything on my report.
Message 8 of 13
Contributor

Re: Major Debt w/ PayPal Credit PLEASE HELP

I won't be sure of the above statement. With the name & address & DoB, they can find the relevant entity to report to the CBs. Not having the social doesn't bypass this ability.
Message 9 of 13
Frequent Contributor

Re: Major Debt w/ PayPal Credit PLEASE HELP

This information is false.  When I was approved for PayPal credit 2 months ago they pulled my credit for approval so they definitely have my SSN.  I have an inquiry to prove it.

 

I'm sure they pulled your credit report too since it is a line of credit.  

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Message 10 of 13
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