Paypal credit

johncas1

Seen this new paypal credit thought I would apply I never get approved for anything loans credit cards no credit history but hay I got approved so how dose it work

How long do you have to pay the balance off can I pay a bit each month until I pay if off say I spend £160 can I pay say £40 a month until it is paid off or do you have to pay it all next month is it like an argos card where you can buy now pay 12 months later

Marcio45

Works almost like a credit card. You get an online statement every month where it tells you how much is the minimum payment. You can then pay any amount over or the minimum payment. To avoid interest you have to pay full balance (except if any deal). They also have special deals like if you spend over £150 you get 4 months interest free on that purchase.
Been using them for 5 months, not much different to a credit card.

bengalknights

Usually you get upto 59 days from close of statement to pay the minimum payment, the interest free period is upto 6 months

grumbler

bengalknights wrote: »

Usually you get upto 59 days from close of statement to pay the minimum payment,

Do you mean the previous statement?

the interest free period is upto 6 months

I can't find T&C, but this sounds very confusing to me.

Doctor_Duke

It works as a credit card. They give you a special 0% on a transaction over £150 over four months. This applies all the time. Useful feature IMO but you do have to pay that transaction off within the four month period to avoid interest. You can have as many of these transactions as your credit limit will allow each starting a 4 month period at the time of the transaction. In all over ways it's a credit card but without a physical card.

callum9999

grumbler wrote: »

Do you mean the previous statement?I can't find T&C, but this sounds very confusing to me.

Yes they mean from the previous statement.

They have random offers - there's one for 4 months interest free right now, I vaguely remember 6 months free in the past (though I don't remember if that was UK or US).

EDIT: The current US equivalent of the UK 4 months offer is 6 months.

Doctor_Duke

callum9999 wrote: »

I can't speak for the US product I am in the UK after all but I have had the facility for a while and I've always had the four month interest free period. I don't actually think it is a random offer as suggested! It's clearly a revolving facility that I continue to use.

The blurb is here: https://www.paypal.com/uk/webapps/mpp/paypal-virtual-credit

[Deleted User]

Ties in nicely with their new TV Advert for 'the new money' or whatever they say they are.

By giving a small revolving credit line, they are encouraging usage of Paypal at retails other than eBay that accept it.

E.g. Pizza Hut take Paypal and credit/debit card payments. If Paypal are going to give you 4 months 0%, people will start to pick Paypal as the payment processor.

Edit: Maybe not - * Any remaining balance due after the 4-month promotional period or any transactions under £150 will be charged at 17.9% p.a (variable)


Can't quite see the benefit to them then - any purchases at those retailers (to encourage usage of the Paypal E/Digital-Wallet) will be interest bearing, so most people would just use their debit/normal credit card...???

System

Useful for paying something over a few months that you can't afford in a single go but need sooner e.g. washing machine.

Not so useful for buying tat from Primark

Somerset_La_La_La wrote: »

Ties in nicely with their new TV Advert for 'the new money' or whatever they say they are.

By giving a small revolving credit line, they are encouraging usage of Paypal at retails other than eBay that accept it.

E.g. Pizza Hut take Paypal and credit/debit card payments. If Paypal are going to give you 4 months 0%, people will start to pick Paypal as the payment processor.

Edit: Maybe not - * Any remaining balance due after the 4-month promotional period or any transactions under £150 will be charged at 17.9% p.a (variable)


Can't quite see the benefit to them then - any purchases at those retailers (to encourage usage of the Paypal E/Digital-Wallet) will be interest bearing, so most people would just use their debit/normal credit card...???

[Deleted User]

True - but if they want to encourage usage of this wallet (as would suggest by the frequency of their recent TV adverts!), I'd have thought "tat from Primark" would be a good starting point for them, especially with the split from eBay (something which traditionally attracts large amount of smaller value payments)

How many times a year would you buy something over £150 like a washing machine online?

Great boost of 4 months 0% for those who can get it, and it's better than a slap in the face - just seems to me Paypal missed a trick in not offering a full (all purchases) 'free for X days' revolving credit account.

If Mr Smith buys a washing machine, then forgets about it all together (due to not using it for low value trans.), Paypal have effectively lost out with the whole scheme

callum9999

Somerset_La_La_La wrote: »

True - but if they want to encourage usage of this wallet (as would suggest by the frequency of their recent TV adverts!), I'd have thought "tat from Primark" would be a good starting point for them, especially with the split from eBay (something which traditionally attracts large amount of smaller value payments)

How many times a year would you buy something over £150 like a washing machine online?

Great boost of 4 months 0% for those who can get it, and it's better than a slap in the face - just seems to me Paypal missed a trick in not offering a full (all purchases) 'free for X days' revolving credit account.

If Mr Smith buys a washing machine, then forgets about it all together (due to not using it for low value trans.), Paypal have effectively lost out with the whole scheme

They aren't looking to expand at any cost though - and providing credit facilities certainly can be costly.

If that's their eventual goal, it makes sense to start slowly.