Best way to clear PayPal credit debt

Moneyshavingexpat

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?

born_again

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.

HillStreetBlues

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?

It will be positive, it shows you can pay off a debt.

CliveOfIndia

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.

MEM62

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.

Yes, it will lower the amount of interest you pay.  

There are no negative consequences of paying off debt.  

inthezeroroom

Pay it off and cancel Paypal credit. Forget about your stupid credit rating.

EssexHebridean

inthezeroroom said:

Pay it off and cancel Paypal credit. Forget about your stupid credit rating.

^^ This, although slightly more gently worded. 

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.