Paypal Credit - a query

JohanSmith

Hello

New to MSE, but in need of some advice as I'm new to using credit cards.

I recently signed up for PayPal Credit. I used it on an ebay purchase for a TV. I bought it on an offer of £9.92 per month for 12 months at 0% interest. Which seems straightforward enough to me.

However I'd like to put a further ebay purchase of £90 on PayPal Credit, but I'm not totally sure what my minimum repayments are going to be then or what interest will be incurred.

The way I currently understand it is this, on a balance of £209, the minimum monthly repayment is £5 (because 2% is less than £5), so I'd still be paying £9.92 (as per the 12 month 0% interest offer) + £5 + interest on the £90 at PayPal's 19.9% APR.

But what is the interest due each month?


MSE's own credit card minimum repayment calculator web page leads me to believe that at a minimum payment of £5 per month, £90 would take 1 year and 10 months to pay off and only incur £16 interest at PayPal's 19.9% APR.

So that's £0.727 per month interest.

Is that correct? Seems an awfully small amount of interest per month?

Are there other charges I'm likely to incur?


Thanks in advance for any help/advice on this.

18cc

I have no experience with Paypal credit but have you tried Googling 'how does Paypal credit work' there are quite a few articles there that might help you

[Deleted User]

It's not a linear 72p per month.

It's around £1.50 to begin with, dropping to a few pence at the end.

jimbo26

The TV will continue to be paid interest free. The new £90 debt will be paid off with interest if you don't clear it after the statement date.