A question regarding Paypal Credit and how it works.

ZilianStoleMyMoney

Tried to ask Paypal about this, and met with silence essentially, but I was wondering, when people sign up and get accepted for Paypal credit does it mean that all purchases by vendors are then split over monthly payments?

The reason I am asking is, I assumed this would be the case like any other credit agreement (bar the few exceptions for short term loans) and that any purchases made would be split over the months, but then I read that only some vendors who allow Paypal have instalment plans...

Which has me now confused, does it now mean that any that don't use instalment plans expect payments very quickly and not spread over say 12 to 24 months?

The fact Paypal is very tight lipped about it sends red flags into my head, are they trying to catch out first time users by paying for something expensive and expecting it to be paid in a month or two?

Perhaps someone can clarify for me, as said Paypal has very little information about it.

[Deleted User]

I have Paypal credit. The standard offer is 0% APR over 4 months for anything over £150. You might get offers for instalments over 12 or 24 months but that depends on the retailer and Paypal.

It will be clear when you check out if instalments are offered. If there are no instalments then it works just like a normal credit card.

I tend to use it for Ebay purchases as the listing will tell you if instalments are offered or not. Also, some instalments are 0%, some are 12.9% APR, which still isn't too bad.

creditscoremeansnothing

Basically anytime you pay with paypal you get the option to put it on paypal credit, like a credit card.

At the end of the month you receive a statement and if you pay in full then no interest, like a credit card.

However if you make a purchase over a certain amount (can't remember, think its £150) then it automatically gets put on the 4 month interest free instalment plan and is then itemised on your statement seperatly.

I agree though its not the easiest dashboard to figure out.

ZilianStoleMyMoney

So all Paypal Credit purchases are similar to credit cards and you pay a minimum amount each month based on the remaining balance?

But I am confused on the over £150, does that mean 4 months of interest free but doesn't mean you have to pay in 4 months, but can be done as above by minimum monthly payments?

Sorry to ask, but what you said seemed a bit confusing, when you said 4 month interest free instalment plan.

20aday

From their website:

* The minimum payment due still applies to 0% offer balances. Any remaining balance due after the 4-month promotional period or any transactions under £150 will be charged interest at 17.9% p.a. (variable). In order to maintain the 0% offer, you need to keep up monthly repayments and stay within your credit limit. Credit subject to status. Terms and conditions apply. UK residents only. PayPal Credit is trading name of PayPal (Europe) S.à r.l. et Cie, S.C.A. Soci!t! en Commandite par Actions Registered Office: 22-24 Boulevard Royal L-2449, Luxembourg RCS Luxembourg B 118 349.

So you'd be able to make the minimum monthly payment but after four months you'd attract interest on the outstanding balance.

forgotmyname

The 4 month interest free is often an offer when you open the account. Its not an ongoing thing.

You may get a different offer initially or none at all.

You don't get 4 months interest free on every purchase.

A4445

The 4 month 0% as long as you spend more than £150 is definitely ongoing.