PayPal Credit is a scam

[candrews333]

I got approved for a credit line with PayPal credit. As of today I have been unable to use this credit line for any transaction for any amount. Contacted PayPal and I am told since I have no history there security is blocking the transactions. I have enough of a history for you to approve the credit line but not enough to use it. I have submitted complains with the FTC and Consumer Protection Bureau.

It is outrageous to me that a company is allowed to do this

[DPCreations]

If your credit history isn't good enough for the current purchase, you need to find a way to improve your credit history and credit score.   That your responsiblity, not PayPal's obligation.

[candrews333]

So credit history is good enough to recieve the credit line but not good enough to use it. Explain how that makes any sense?

[lancelotme]

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@candrews333 wrote:

So credit history is good enough to recieve the credit line but not good enough to use it. Explain how that makes any sense?

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what are you trying to buy?

May be try something small and build up your history with Paypal/ 

[bbush55]

If you were approved for a credit line in any amount, then you should be able to use that at ANY location where that line of credit is accepted. It ABSOLUTELY is PayPal's obligation to allow you to use your credit in good standing. It has nothing to do with your credit score. That was a factor when applying but once you have the line of credit, it can't be taken away. I was approved for $1250 and have yet to be able to use it anywhere. The issue is with PayPalm not the customer.

[DPCreations]

Where is it written that it is PayPal's obligation to exend the credit without restrction?

Even credit card companies have security in place to deny use when appropriate.

[UMS1014]

1. Paypal is not in it to help consumers, they are only interested in penalties.  You would be wise to pick another loan elsewhere.  Paypal credit wants users to choose "Pay with paypal credit" because as you go on making purchases building your debt, the original purchase has to be paid within 6 months.  They credit  your payments with the newest purchases leaving the original one to default. 

2. It use to be there was NO monthly payment as long as you paid back within 6 months but now you could have a low balance of $100 with 3 months left to pay and decide to skip a month, they add interest and a late payment. How can they charge back interest from purchase date if you dont pay off in time and apply interest and late payments monthly.  "Manipulating theft" 

3. It is not enough for them to get the merchant percentage for every order, they lie and wait for consumer to DEFAULT.

4. Do not use for multiple purchase.  Be wise and use for one - (1) major  purchase only.  IE: Buy a television @ $1,000.00. Make 5 payments monthly of $175 and last one $125.  Make sure you check monthly due dates to pay before and the last payment before 6 month expires.  Then if you want, make another purchase.  This is the only way they are beneficial...

5. I am a blogger and have sent loads of messages warning people about the monthly minimum payment because I had used in past and not made payments monthly but always paid before 6-months and there was NO fees.  Recently, I had a small balance with several month's to pay and was on vacation so I just skipped sending anything like I have done before but the difference this time was a $20 late fee and $2.00 interest fee.  They finally did remove the late fee but just to irk me, kept the $2.00 interest fee.  Be careful.  I have warned millions so I hope their $2.00 theft is worthy.  

6. Just knowing this outfit, I doubt this will be approved even though it is 100% truth

[MiaMoody]

Are you using it correctly because you can pay for anything online n go to store to pick up as paid. & you can also use at registers that post PayPal accepted options.

[Filmshockers]

Are you kidding me? My credit score is a 727 and I was approved PayPal credit. Nowhere in the terms or conditions it states you cannot use your credit immediately. Now the fraud part about it is that PayPal initiates a hard inquiry on your credit report and it stays there for three years. So now we have a hard inquiry on our credit report for a credit line that we aren't even allowed to use . PayPal customer service is a joke. They say the system has to learn your spending habits but how is that possible when it doesn't let you use it in the first place. It's a scam and if it doesn't change soon I will be contacting my lawyer if they do not remove that hard inquiry from my report .

[lancelotme]

Is Paypal saying you dont have history with Paypal?

Have you been a Paypal member long ?