Has Paypal lowered your Buyer's Credit limit?

mkeguy30
Contributor
Contributor

For over a year now, Paypal has been regularly and consistently reducing my credit limit with my Buyer's Credit account. I've never been late with my payments, and my overall credit generally has not declined in the past year. Has this happened to anyone else? Obviously, personal information should not be shared. But I think it should be communicated with Paypal that such actions really are not conducive to business and actually limit your most loyal and profitable customers. It's simply bad business. I'm curious to read these responses.

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9 REPLIES 9

nickOO7
Contributor
Contributor

How is your paypal account verified? I think that if you have your paypal account linked to your bank account or the paypal master credit-card (or both in my case) your buyer credit does not go down. But if you have your paypal only linked to a credit-card; your buyer's credit drops by every amount you buy. A while back before I got my paypal plus card; I deleted my bank account cuz I was in the middle of switching banks & I tried to pay something with paypal before my new bank account was verified & I got a message that I was over the buyer's credit limit. After I verified my bank account; it was fine. I applied for the paypal plus credit card after so i won't have that problem again. Hope this helps

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mkeguy30
Contributor
Contributor

Nope, it's all verified and I'm set up with a Premier account.  This has been going on gradually for a year now.  My balance fluctuates, but hasn't ever reached my limit and is always in good standing.  As I make large payments to reduce my balance, GE lowers my limit to my balance.  They've been doing this rather methodically for months now.

 

I understand that the economy as a whole is terrible and that banks are doing this to everyone.  But this doesn't appear to satisfy even a broad set of reasons why my available credit should be lowered.  My overall credit has not declined.  My account with Paypal has always been in good standing.  There is simply no reason at all that my Buyer's Credit would be reduced, other than a desire on the part of GE Money Bank to reduce their consumer lending.

 

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nickOO7
Contributor
Contributor

That sounds very odd to me & I don't really have an idea other than to try calling GE.

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annamay
Member
Member

Yes!! The SAME thing has happened to me -  Although not so gradually.  Last month my balance was $500 and I just discovered it's been lowered to $100.  My credit is fine, I've always paid my PayPal Buyer's Credit balance on time so I don't get why they did this!?  Keep us posted if you find anything out...

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Siermine
Contributor
Contributor

i think this happens if you dont pay it completley off within a certain period of time. if you do i think it goes up but im not sure.

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VHADLEY
New Community Member

Yep.... That's exactly what paypal has done to me twice now..... I got a letter in the mail that they often recheck my credit and adjust the limit accordingly.  I don't use my buyer credit anymore because of this. One minute you think you got the credit and next it's gone and then back up again... I know someone posted about how you link your accountbut it has nothing to do with it because my account is linked in every possible way.. It's paypal spying on your credit or possibly lowering or increasing limits when it will benefit their company.

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warclub
Contributor
Contributor

I've not been a problem to them and never been anywhere NEAR my credit limit and they've cut me down to $100.  Got the message in the mail today.

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MARIPOSAME
New Community Member

JUST COMBED THROUGH THE PAY PAL SITE FOR MY CREDIT LIMIT. NO LUCK. JUST BOUGHT SOMETHING FROM E-BAY AND THEY DECLINED MY ORDER. BECAUSE OF "NOT ENOUGH CREDIT" THIS **bleep**! I'VE ALWAYS PAID MY PAY PAL CARD OFF WHENEVER I CHARGED SOMETHING. NOW I'M STUCK IN A SITUATION WITH E-BAY AS HOW TO PAY THIS SELLER  OFF. SINCE ALL HE ACCEPTS IS PAPAL FOR A PAYMENT. I TOO HAD A 500.00 LIMIT. NOW I CAN'T EVEN PURCHASE A 100.00  ITEM.  WHAT'S UP PAYPAL???

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jbiddle8
New Community Member

My limit was $1400 so I paid it down to $50 so i could fly my wife to UCLA to have open heart surgery and they immediately lowered the limit to $100. What are you supposed to do with a credit card with that limit. Never been late, have not missed a payment of any kind for the past 10-12 years and I get the letter stating the same thing. Your a deadbeat and do not pay your bills.

 

Thanks!

JB

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