PayPal Credit and Credit Bureau's

[BiffBoom]

Just trying to find out WHY PayPal Credit doesn't report to the Credit Bureau's.   I would think that that topic would be important enough to place in the FAQ.  Oh well.  Hope someone can explain.Thanks. 

[MissLanna]

Buddha, is that right? I just signed up and need to build credit. Does it actually show your balance and on-time payments, on your credit report?

[Closetnerdthe1s]

In reading these posts I'm baffled by the complaints regarding PayPal Credit not reporting to credit agencies. If that is your issue you're missing the most valuable aspect of PayPal Credit.  No Payments and No Interest or Fees up to 6 months.  Other then an introductory offer— where can you find a credit card, bank or credit union with such a program?

If your over utilizing any existing credit; i.e., more then 30% of your available credit card limits, and paying less then the last statement balance every month, then the issue is a poor expendable income to credit use problem. Having more credit available might reduce your overall available credit utilization score but that won't increase your expendable income. In all likelihood PayPal Credit would only compound an already existing money management problem.

A secondary advantage to PayPal Credit not reporting to credit agencies is you can utilize up to 99.99% of PayPal Credit without it reflecting negatively on your credit report, and provided you pay off the balances due on time it doesn't cost you a nickel.

[Tim1959]

SHADY SHADY SHADY

[DMobley232]

I agree. I love the concept. I dont use it that often, and when I do I pay in full, but I like the idea it doesnt report. THere are times that I need to max it out, which in turn decreases my credit score, so I love the concept. I wish there were more things out there like paypal credit.

For those that are wanting to use paypal credit to build credit, I dont understand. Get a credit card that you can use anywhere, pay it off every month and keep doing that. Paypal credit is limited by where and when you can use it.

[DPCreations]

My own thinking is that PayPal Credit should use credit reporting agencies the same as other credit facilities.  This means PayPal Credit would do a hard check with the agencies before reviewing potential members' use of PayPal Credit.  PayPal Credit should then report the same activity as other credit facilities do:  both good and bad.  With that in mind, someone with marginal credi score and low financial security would not be able to get PayPal Credit..

As for the user, just focus on building a strong fiancial base and protecitng your credit you have a good credit score without PayPal Credit..

[ShauneeJ]

I agree with this as well. I am pretty consistent with my credit utilization making sure to keep my usage under 20%. the fact that this account allows me to use it to the max without negtively affecting my score aaannnnndddddd I can continuiously get 6 months interest free to pay it off ??? This is the best thing since slice bread!

[User_10010110]

I agree, it definitly warrants an explaination. More than likely it's structured this way as a shady practice of lending people who have no business borrowing money so they can shake them down in 6 months, kinda like the mortgage scams of 2007. Personally, I was borrowing a few 100's-1,000's here and there even if I had the money because as a credit line I was under the impression it would be helping build my credit score... Now that I've found out that it doesn't I'll be looking into an alternative means to do so.

[GARN]

Please..Please..Please never change the current system! I love the fact that PayPal does not report to the credit agencies. That and the promotions is the only reason I use it. We are buying a home right now and the lender checks our report a couple times throughout the process so less reporting is a good thing! Build your credit with other cards and use PayPal when you need PRIVATE purchasing power! 

[bosco1970]

Yes I agree PayPal should report balance and payments to help people to improve there credit , makes no sense!

[DMobley232]

I Agree. I like the fact it doesnt report.  I'm in the process of home loan and i'm not supposed to have any changes to my report, other than decrease balances. Paypal credit allows me to still make a few purchase and not worry about having anything pop up on credit report.

Its pretty simple, for those that need to help buid credit use something else.