PayPal credit and increasing limits

Graham1982

Hello everyone:

Firstly I would like to point out that I know people do get into trouble with PayPal credit and that it is a frequent topic of conversation on the Debt Free Wannabe forum.

However, I have switched on the notify me if you want to increase my credit limit thing and I have accepted limit increase from 800 odd quid to 1,500 recently and then there is another option to increase it again. 

I have a balance of say 200 quid on there that I am paying off month end and I never, ever get anywhere near credit limit.

My question is, is it worth accepting the credit increase like it is with other lines of credit as it shows you are a good "risk" or is it pointless as this is not a credit card per-se?

Thanks

Graham

Nasqueron

It's no bad thing to have a higher limit as it shows the firms trust you to manage your account responsibly, provided you are paying off in full every month, it's unlikely to have any issues. There are some who argue that having higher limits is bad because lenders might consider you more of a risk to run up credit and thus a future application might get lower credit but lenders all work in their own ways. How long ago was the last increase - a month or two or a year ago? If it was say 12 months ago I'd just accept it and keep using it as you do now, if it was 2 months ago, it's probably not worth the risk if they are doing a search

Dandytf

I've never been offered PP Increase though apart from occasional Tech purchases never reached 1 or1.45k Limit.
Did OP choose to review before accepting increases.
I always chose this option rather than Auto Accept or Don't receive increases.

Nasqueron

Dandytf said:

I've never been offered PP Increase though apart from occasional Tech purchases never reached 1 or1.45k Limit.
Did OP choose to review before accepting increases.
I always chose this option rather than Auto Accept or Don't receive increases.

That's because of your significant debt and responsible lending rules

Dandytf

Nasqueron said:

Dandytf said:

I've never been offered PP Increase though apart from occasional Tech purchases never reached 1 or1.45k Limit.
Did OP choose to review before accepting increases.
I always chose this option rather than Auto Accept or Don't receive increases.

That's because of your significant debt and responsible lending rules

It helps I don't need PP Increase.

Graham1982

Hello everyone

Last increase offered was a couple of months ago and I do have the "review offer before increase" option selected.

Thanks

Graham