Why is my available credit line less than it shows allowed?

[ChemiD]

I have a credit line of 600$ yet it says available credit line is like 20$ I recently paid off 500$ on my credit line. (Like 6 days ago) Anyone know why this could be? Ive been waiting for a response from paypal for 3 hours now.

[russfila]

I had the same. I had a credit limit of £5000. WIth £1600 used. I pad my balance down to £0 last week in preparation to pay off a holiday next week. On checking today they have reduced my credit to £50!!. I contacted them and they advised they are reviewing accounts and removing credit limits form people not fully using them (my average statement balance over the last year is £1500) and giving that credit to other users. Its totally messed me up as I not have to find the holiday money (£1500 that u paid my Paypal account balance down with) before Monday or risk loosing my holiday and amount already paid (the holiday may be cancelled due to coronavirus) but the travel company will not refund as the holiday will be cancelled due to non payment of balance. Paypal customer service have advised there is nothing they can do and the decrease by the system form £5000 to £50 is correct. My lowest credit purchase last year was £200 so £50 limit will not buy me anything without showing me maxing out the available credit.

[Fwtxj]

I had a similar experience with a Bass Pro credit card a few years back, so I certainly feel your pain! Looking forward though, you might want to consider setting up automatic money transfers, weekly, monthly ect., from your bank, to a PayPal goal acct (call it "Holiday Spending" or something like that). Then, when you're ready to do your Holiday shopping, you simply transfer $xxx.xx out of the "Holiday" act to a PayPal debit only account, and use your debit card to pay for your items. The transfer process is very quick and I personally prefer this method because, you avoid being charged % on your credit card, and those dreaded monthly payments! I set up 3 goal accounts with PayPal (Hard Times, Vacation, and Fun Money) and my bank transfers the money automatically as directed when my paycheck is direct deposited. When you set up your "goal account(s)" in PayPal, you decide how much, and how often, you want those funds transferred from your bank to PayPal. Think of it as little savings accounts (albeit 0% interest accruing on your money) towards reaching your goals. Hopefully my workaround makes sense to you.

[russfila]

Thanks. Thats certainly a great idea. I currently do similar with my savings account and had saved the money to pay off the holiday. I simply thought that paying off my Paypal account and then using the credit account to pay off the holiday giving me an extra 2 months to pay off the holiday would be better for my credit rating (my limit was £5000). I paid the PayPal off for them to only reduce my limit immediately down to £50 (as i had £0 balance rather that £1500 for a week and deemed to not require the credit). If i had known I would have left the £1500 balance on PayPal and paid it next month whilst paying off the holiday with my savings this month. I guess it was just about timing. If my holiday balance wasn't due tomorrow it wouldn't have been an issue. They have advised they are looking into it but I will have to wait and see. They have offered to refund the last large payment I made but not would mean a £1500 balance on an account with £50 limit which is not good.