PayPal Credit

theChief
theChief Posts: 3 Newbie
in Credit file & ratings
Hello!
Does anyone know if PayPal Credit affects your credit score? I've read a few things that say it does and a few things that say it doesn't. If anyone actually knows one way or the other, that would be useful!
Cheers
«1

Comments

  • sourcrates
    sourcrates Posts: 28,870 Ambassador
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    A change in the wind can affect your fictional credit score.


    No one can give you a definitive answer on this, and if they do, it would be a guess.


    Enjoy the weekend, forget about credit scores.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • theChief
    theChief Posts: 3 Newbie
    Well that's fair!
    Just starting to look into getting a mortgage so want to know everything that might affect that.
  • sourcrates
    sourcrates Posts: 28,870 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    I do not think Paypal is seen as being a sub prime lender, although some mainstream banks may be of that opinion.


    Best advice is to ignore the score, make sure your credit history is as good as it can be, pay bills on time, no late payments, no defaults, do not go insolvent, make sure your on the electoral role etc etc, all the common sense things.


    Don`t try to get inside the minds of lenders, as they all have different scoring systems of their own, trying to second guess it all is just impossible and will only leave you with a headache.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • theChief
    theChief Posts: 3 Newbie
    Thanks, that'll help me relax over the weekend.

    Argh, a missed payment may screw me over - HSBC told me they'd set up a direct debit to pay the minimum payments on my card. I usually pay more than the minimum manually so I never notice, but this month got dates mixed up and missed by a day. Sigh. At least it's all set up properly now.
  • T-G-C
    T-G-C Posts: 591 Forumite
    First Post
    theChief wrote: »
    Thanks, that'll help me relax over the weekend.

    Argh, a missed payment may screw me over - HSBC told me they'd set up a direct debit to pay the minimum payments on my card. I usually pay more than the minimum manually so I never notice, but this month got dates mixed up and missed by a day. Sigh. At least it's all set up properly now.

    If the lender records a missed or late payment on your credit file, it could deter lenders, especially mainstream, for a short period of time. I put emphasis on the word "could" as I am not a lender or credit expert.

    If changing your payment method in future, for the first month or so, make a manual payment to cover the expected amount, which can act as a fail-safe in the event that something goes wrong.

    As for PayPal Credit, I wouldn't think it would lower your creditworthiness. As the poster above has said, each lender is unique and therefore can't provide an exact answer.

    If it is any consolation, PayPal Credit requires their customers to be employed or retired with a minimum income of £10,000, with quite a strict approval rate too, which is more than can be said for lenders like Vanquis, who are known to accept almost anyone existent in the UK.
    Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.
  • nic_c
    nic_c Posts: 2,928 Forumite
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    They do a credit check, so that will be a hard search that will show, and obviously not a good idea to apply for new credit just before applying for a mortgage
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Name Dropper First Anniversary First Post
    Lenders don't see who you have accounts with so it doesn't matter if it's Paypal or HSBC. I have an account with Paypal with a £5k limit - I think the max is £7.5k.
  • glentoran99
    glentoran99 Posts: 5,821 Forumite
    First Anniversary Combo Breaker First Post Debt-free and Proud!
    camelot1971 wrote: »
    Lenders don't see who you have accounts with so it doesn't matter if it's Paypal or HSBC. I have an account with Paypal with a £5k limit - I think the max is £7.5k.

    How do they know about payday loan then?
  • nic_c
    nic_c Posts: 2,928 Forumite
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    glentoran99 wrote: »
    How do they know about payday loan then?
    They see the type not the brand i.e. credit/store card, unsecured loan, etc. So payday loans show differently to credit cards.
  • maxximus75
    maxximus75 Posts: 555 Forumite
    First Anniversary First Post Name Dropper
    theChief wrote: »
    Thanks, that'll help me relax over the weekend.

    Argh, a missed payment may screw me over - HSBC told me they'd set up a direct debit to pay the minimum payments on my card. I usually pay more than the minimum manually so I never notice, but this month got dates mixed up and missed by a day. Sigh. At least it's all set up properly now.


    I would call up of write a letter to see if as a good will, they will remove the late payment marker (if they have placed one on your credit file?) due to the error with the direct debit.


    It's worth a shot?


    Check your report next month to see if they have placed one?


    Did they charge you a late payment fee?
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