Paypal Pay in 3 + Credit Score Impact?

MrSilk

Afternoon all,

I've had 7 pay in 3 plans from PayPal over the last 8 months and these are now showing up on my TotallyMoney report provided by TransUnion. Does anyone know if these have a negative impact on my file? All paid on time and now closed of course but they only started to show up last month.

TIA  

sourcrates

It show`s that you were granted credit, and that you repaid it within the terms and conditions of the agreement you signed up to.

Anyone viewing your file will see that information, I can`t see a downside to it, can you ?

MrSilk

Thanks, didn't know if it was looked on unfavorably like pay day loans!

Rosco32

MrSilk said:

Thanks, didn't know if it was looked on unfavorably like pay day loans!

PayPal credit shows on your credit record as a credit card as opposed to a loan, well at least it does for me on all 3 credit references agencies, so I assume anyone searching your credit files will just see it as a balance against a credit card, which has been successfully paid off. 

sourcrates

MrSilk said:

Thanks, didn't know if it was looked on unfavorably like pay day loans!

Well, no, PayPal is just a normal credit product, with payments spread over time.

Payday loans initially had to be re-paid in full, on your payday, or laid over at a hefty cost.

They were, and are, a flawed product, because of the domino effect to your finances.
Those on a fixed income will never be able to repay the debt, if they were short one month, it stands to reason they will be so again the next month, and the next, and the next, they will never have the disposable income to repay the loan, unless they default.

PayPal is currently in the process of obtaining FCA approval to operate under licence in the UK for the first time, there European arm currently operate out of Luxemburg.