Paypal Credit

Hello, I’m wondering if anyone is able to ease my mind here!

We have just been accepted at DIP stage, in the process of sorting the full application. This is second time lucky after our first lender changed their criteria in between DIP and full application, making us no longer eligible.

I have a Paypal credit account that I set up to buy one larger item, and paid back in monthly instalments. I paid off the remainder of this last month, so did not cite it as a debt on my application for the DIP as the balance was £0 and I am no longer using it. Or so I thought... Now I should mention too, if you aren’t familiar with Paypal credit, it functions exactly like a credit card.

We were accepted for the DIP this afternoon. Yay! Later this afternoon I went to make a purchase online (thankfully only small) and paid through Paypal because I was too lazy to find my bank card... I thought I was paying, through Paypal, with my debit card, but afterwards I realised that the Paypal credit option had been selected.

I checked my Paypal credit account, and there have been three transactions in the past week, totalling around £90 (of a £400 limit) - again where I hadn’t realised the ‘pay with Paypal credit’ option was selected. The first payment was a coat for £81 so I immediately paid off that balance with my debit card. However, the second and third payments were still pending so I wasn’t able to pay those off. I just do not want this account any more, I’m so frustrated with myself that I didn’t notice this and have used credit without meaning to.

I called up Paypal to explain, and the very helpful advisor said that they will take the remaining credit balance from my debit card that is linked to the account, then close my account to avoid this happening any more. This will be done by the start of the week.

I’m freaking out a little bit, but in the scheme of things it’s such a small amount and paid off within days. Do I need to inform my broker of this?

Replies

  • jrrrrjjrrrrj Forumite
    55 Posts
    Second Anniversary 10 Posts Name Dropper
    Forumite
    I feel your pain because the very same thing happened to me. PayPal report it to Equifax so it shows up on my credit file. 

    The good thing is, I paid it off and I complete on Monday so it hasn’t had any issue with me getting to the final stage. 

    It’s sneaky! I’m like you, it’s convenient to log into PayPal and think you’re using it and paying via your card!

    I’m sure you’ll be absolutely fine. If it’s bothering you, just let your broker know. They’ll tell you what they think is right. 
    FTB with Halifax
    23/10 AIP
    23/20 Full application 
    26/10 Valuation booked
    28/10 Case agreed subject to valuation 
    03/11 Desktop valuation 
    04/11 Offer received
    28/01/21 Exchanging of contracts 
    01/02/21 Completed ✅ 
  • f1ngerscrossed274f1ngerscrossed274 Forumite
    14 Posts
    10 Posts
    Forumite
    jrrrrj said:
    I feel your pain because the very same thing happened to me. PayPal report it to Equifax so it shows up on my credit file. 

    The good thing is, I paid it off and I complete on Monday so it hasn’t had any issue with me getting to the final stage. 

    It’s sneaky! I’m like you, it’s convenient to log into PayPal and think you’re using it and paying via your card!

    I’m sure you’ll be absolutely fine. If it’s bothering you, just let your broker know. They’ll tell you what they think is right. 
    Thank you, this has reassured me! It really is sneaky, isn’t it.

    I am so glad things have worked out for you - looks from your timeline like you have made pretty good progress. All the best for Monday!
  • jrrrrjjrrrrj Forumite
    55 Posts
    Second Anniversary 10 Posts Name Dropper
    Forumite
    jrrrrj said:
    I feel your pain because the very same thing happened to me. PayPal report it to Equifax so it shows up on my credit file. 

    The good thing is, I paid it off and I complete on Monday so it hasn’t had any issue with me getting to the final stage. 

    It’s sneaky! I’m like you, it’s convenient to log into PayPal and think you’re using it and paying via your card!

    I’m sure you’ll be absolutely fine. If it’s bothering you, just let your broker know. They’ll tell you what they think is right. 
    Thank you, this has reassured me! It really is sneaky, isn’t it.

    I am so glad things have worked out for you - looks from your timeline like you have made pretty good progress. All the best for Monday!
    It sure is! Annoyingly I missed two payments on PayPal at the beginning of last year purely because I was oblivious to it being credit and because PayPal’s emails went to my junk email folder. 

    I settled it straight away and it hasn’t affected me getting to completion stage so I’m keeping everything crossed for you. I’m sure it will be ok! 

    Two more sleeps until I complete 💃 
    FTB with Halifax
    23/10 AIP
    23/20 Full application 
    26/10 Valuation booked
    28/10 Case agreed subject to valuation 
    03/11 Desktop valuation 
    04/11 Offer received
    28/01/21 Exchanging of contracts 
    01/02/21 Completed ✅ 
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