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Best way to clear PayPal credit debt
Moneyshavingexpat
Posts: 1 Newbie
in Credit cards
I have around £515 of debt on my PayPal Credit that I have been slowly chipping away at but have barely made a dent in. I am now in a position to pay it off in cash, and I am wondering if there are any implications of doing so. Will it positively or negatively affect my credit rating, which is poor at the moment—not due to debt, but the lack thereof?
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Comments
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Credit rating means noting to lenders, they never see it. It is your history (missed payments or not) that counts.
Just pay it off if you have the cash to do so.Life in the slow lane3 -
It will be positive, it shows you can pay off a debt.Moneyshavingexpat said:I have around £515 of debt on my PayPal Credit that I have been slowly chipping away at but have barely made a dent in. I am now in a position to pay it off in cash, and I am wondering if there are any implications of doing so. Will it positively or negatively affect my credit rating, which is poor at the moment—not due to debt, but the lack thereof?
Let's Be Careful Out There2 -
Yep, clearing the debt will be viewed positively by lenders - it matters not one jot what the CRAs think of it, since they're not the ones lending you money.And, assuming you're paying interest on the debt, it's obviously good for your pocket as well.1
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Yes, it will lower the amount of interest you pay.Moneyshavingexpat said:I am now in a position to pay it off in cash, and I am wondering if there are any implications of doing so.
There are no negative consequences of paying off debt.1 -
Pay it off and cancel Paypal credit. Forget about your stupid credit rating.
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^^ This, although slightly more gently worded.inthezeroroom said:Pay it off and cancel Paypal credit. Forget about your stupid credit rating.
Paypal credit is a scourge - pretty much every second person we see arriving on here there days has debt with them, they seem to offer credit out like sweeties without even pausing to think whether it's responsible or not.
Clear the account, then inform Paypal you no longer want the credit facility.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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