Should I cancel Paypal Credit? Worried about credit score

[Huntress1696]

So I was interested in making a larger purchase recently and saw Paypal's credit's 6 months no interest if it's over $100 deal. This was perfect for my situation so I signed up for the program and was approved for 1,250.00 in credit. Hooray.

Come to find out I was not able to use the credit to make my purchase because the stupid security system kept denying my payments. I was **bleep**, but that's for another post.

The window for purchasing the item I want has closed, I do not intend on using the credit at any point in the future. I want to cancel my account, but am worried about the impact it will have on my credit score.

I am a young college student with only one credit card, no debt, and only around a 15% untilization rate. The Paypal Credit account has only been open for around a week.

Anyone have any experience with this? Will canceling this card destroy my (Very good) credit score? Should I just keep it for now?

[DPCreations]

PayPal Credit is NOT a card; it is a credit vehicle for selected online purchases.  PayPal Credit does not report to credit agencies in the same way that credit card companies do; PayPal would, however, report defaults and late payments.  Your "available credit" on PayPal Credit is not the same as "available credit" on a credit card so it can't be reported to agencies the same; I don't believe it is reported at all.

So, I don't think cancelling PayPal Credit would have any impact on your credit score; on the other hand I'm not sure you really could cancel it completely if you wanted to.  I also see no benefit in even attempting to cancel it.

PayPal Credit will be offered as a payment option when all factors are good, even if you did not have PayPal Credit.

PayPal Credit evaluates many risk factors before being offered at time of purchase.  Select low risk purchases for a better chance of an offer.

My own suggest is to try or hope to use PayPal Credit the same as a credit card; just maintain excellent credit practices on low risk activities on PayPal for a better chance of a good option.  That means no PayPal disputes and no limitations with your PayPal account.  Follow PayPal terms of use strictly. 

By the way, what were you trying to buy?  Virtual item, used phone, collectible, or somethng else risky?

[Huntress1696]

I was trying to do a pre-order for a private autograph signing. The price was pretty hefty so I can understand why their security sytems blocked it, but it was still really annoying. I even tried some other smaller purchases and was unable to use the credit.

[DPCreations]

Pre-order for a non-existant item--a good thing you didnt' get credit.  If was for future virtual service; PayPal Credit is for purchasing trangible items that will ship.

Just use a credit card for high risk virtual items, never PayPal Credit.

Now that you have a history of attempting high risk purchase, it might have an impact on future purchaes.  You need to build a credible history.  Start with really safe tangible items over $99.  When all is well you will get an offer.