Will using Paypal credit harm my credit score?

[Dr Murdoch]

I have been previously approved for Paypal credit, however I'm not certain whether using it will harm my credit rating?

Also, and on a similar note, are there any negatives by using Papal 'Pay in 3'? Both this and Paypal Credit are given as options.

Edited by Dr Murdoch on Monday 9th September 10:21

[alangla]

Dr Murdoch said:

I have been previously approved for Paypal credit, however I'm not certain whether using it will harm my credit rating?

Also, and on a similar note, are there any negatives by using Papal 'Pay in 3'? Both this and Paypal Credit are given as options.

Edited by Dr Murdoch on Monday 9th September 10:21

I’ve not noticed any impact on my score as shown in the RBS/NatWest app. Either pay in 3 or PayPal Credit can be settled early, just be aware that you need to make a minimum monthly payment on Credit, despite it offering 3 months interest free or whatever, for pay in 3 you need to pay at least what they ask every month. Also, don’t make the mistake I made this month of paying some of it as soon as you’re paid only for the statement to come in with them wanting a minimum payment within 3 weeks: wait for them to ask for money before paying.

Overall it’s a decent way of kicking costs into future months as long as you read the agreement carefully and stick to the letter of whatever offer comes with the purchase. Do not assume all purchases have the same terms.

Awaits flaming for being poor enough to use PayPal credit, but would like to point out that ECP take it so it’s a handy way of getting hold of necessary car bits when short of cash.

[Dr Murdoch]

Thanks!

I should add that making the repayments won't be an issue, so the question stands on the assumption that no payments will be missed.

[mikey_b]

It's credit like any other - use it, don't abuse it, and if you make your payments on time you may well find your score actually increases after a while. Your score, typically presented as 'xxx out of 1000', is nothing more than a consumer-friendly indicator of how financial companies may view your use of the credit facilities you already have. When it comes to applying for a loan, mortgage or whatever, they make their own decisions - not just look at a single number.

[s p a c e m a n]

I used pp credit to buy a few grands worth of stuff from Currys as it was 0% for 3 years, didn't notice any change to my score.

[Stick Legs]

Credit score is a fickle beast at best.

Mine has currently plumeted because I paid off and closed a few credit cards I had.

As one of the metrics is % of available credit I have gone from using 2% of about £30k to 0% of £0 and that's hurt it.

It'll bounce back but it is funny how it works sometimes...

I remember getting knocked back for a phone contract in the same month I took out a Mortgage, as if the 'system' said "nope, that's enough borrowing for you!"

In short, PayPal credit is essentially a credit card and providing you keep up with minimum payments and don't bounce off the limit all the time it will behave like any other credit card and probably help your rating.