Mortgage with PayPal credit

slacky1230

Hey guys

Currently going for a new mortgage on a property in purchasing. I’ve got an Experian free credit account with a score of 960 but unable to download a credit file without paying.

Thought I’d get it Equifax as they was offering a 30 day free trial so went ahead and signed up but on there it says from June my PayPal credit is in arrears and hasn’t been updated since. I can only think the minimum payment wasn’t paid on the 18th of June (I thought it was set to take payment automatically) but I paid the account up in full on the 3rd July.

Is this going to affect things during my mortgage application and is there any reason this isn’t showing up on Experian?

Thanks

[Deleted User]

PayPal don't report to Experian - my account doesn't show on my report anyway. One of the rare occasions when Experian seems to have less information than the other agencies.

How bad did the "in arrears" actually get? If it was just status 1 (1 missed/late payment) then it'll have very little impact unless you're a borderline case anyway. If it got to status 2 or 3 (several months not paid) they'd be more concerned.


Whether it will actually affect a mortgage app in reality depends on many factors
- E.g. The Lender (some are picky about this type of thing, especially if recent - some aren't, people make mistakes afterall)

- Whether the Lender checks Experian ONLY (if they do, they'll never know about it = no issue)

- Your credit file. Linked to the first one, but if your credit is trashed then another negative won't help. If it's perfect and you explain, it might be OK

No way to know until you put an application through - most places will credit score, but some lenders will manually assess you and if it's just a "blip" then it certainly wouldn't stop you getting a mortgage.

If you haven't got an active application in progress, I'd work with PayPal to ensure your account is correctly reported to relevant agencies ASAP (so if you paid 3rd July, you should have status 1 in June/July then 0 in the months following - showing you are back up to date).

I had a customer recently I was amazed got through credit scoring. I can't say what was wrong with the app for obvious reasons, but there are ALWAYS exceptions to the rule - cases you look at and can't for the life of you work out how they got through. Then others you expect to pass and they straight decline... the quirks of credit scoring, only a select few know with any certainty what will happen!

slacky1230

The minimum payment (£10) was due on the 18th June which I must of missed but I paid the full amount on the account on 3rd July (£267) But I haven’t been charged any late payments so really unsure why it’s saying it’s in arrears. Shouldn’t it of updated in July/August/September to show it’s been paid?

I’m going to be applying for a mortgage in the next couple of days but I’ll speak to the mortgage advisor tomorrow and inform him of the matter

[Deleted User]

In that case your "in arrears" should just be status 1, then back to 0.

Yes it should be updated monthly, but PayPal seem hit and miss with their updates across the board.

I never had a September update for instance - my PayPal credit last updated on Equifax is showing as 13/8/19 so I'm definitely missing September.

They will, eventually, get round to updating 2 months at once. Every few months they seem to miss a month.

Not ideal when your most recent month is a status 1 (negative information) however in reality even if they DID update as they should do, it's unlikely to make much of a difference.

The issue for a mortgage lender is the fact you missed a payment - NOT whether it's caught up or not (although, the fact it's caught up is a small positive). Just keep an eye on it (Statutory report, not paid one!)

I think you'll be OK if that's your only issue, just let the broker know