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. 

[micromega]

@DMobley232 wrote:

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.

---

I too, like that it's a hidden trade line and doesn't report. I admit, the first several months I wasn't too happy since I was in the midst of rebuilding. But now I appreciate that this line acts as a reserve of sorts, meaning that if I need to make a purchase bigger than usual (that will jack up my ratio) it's not going to ding my credit score.

I understand though, why some may still be irked that it doesn't report. Especially if it's handled responsibly. We want all that good behavior to be recognized! But you have to admit, it's handy having a credit line that you can carry a large balance on and not worry about how it looks to lenders. This is a good thing during certain situations, like when trying to buy a home or finance a car.

[ShawnInAR]

Nearly everyone is going to find that if you are carrying a balance on the PPC account, it's likely going to ADVERSELY affect your FICO scores. PayPal has done a real disservice in allowing Synchrony to report transactions when we have not applied for the credit card account associated with the credit reporting practices before June 2019. I'm totally **bleep** at this change and will be closing my PPC account as soon as I pay off my balance. #UnacceptableToMe

[SyedHussain]

Kids, when you grow up you'll realize how helpful PayPal is that it does not report, all I hear and you care about is your credit score, well let me tell you something, I have a 700+ credit score yet I get declined, While I had 620 in the past and was approved and approved with starting limit $4000+ ALWAYS. It is not the score that is important it is the history. Even with the $4000+ I had issues I used to max them out and they would report that, caused more issue than a higher credit score. I have a big paypal credit, I pay off in big amount then buy another thing in installment promo or always make sure it is a $99+ cost so that I get 6 months 0 APR and I always keep my PayPal maxed, I am so so so so happy that they do not report to the credit bureau otherwise this thing would have stung me my whole life. 

Anyways just a few tip, my wife had a horrible score, 493, missed payments, bad remarks, credit forced closed accounts, she just was sitting with the wrong people. In about 3-4 months I made it to 640. How:

1. Signup with Credit Karma (Equifax + Tranunion weekly) &/or also full Transunion (Paid) / Experian  (Paid) - I do paid keeps me at my toes. $20/m most likely (Note when the balance was reported, and pay off full 2 days before the reporting date, you can use this to your advantage and roll money around)

1. Cap One secure card (You'll get the limit of whatever you payment security, $200 for a start) - ( Do not use more than $60 then pay off the whole for the first 6 months, it will automatically increase to $500 without any deposit)

2. If there are any collection's that you can dispute, dispute it with all credit bureau's: - 

EXPERIAN: https://www.experian.com/consumer/cac/InvalidateSession.do?code=CDIRESELLER&rid=R045

EQUIFAX: http://www.equifax.com/disputes

TRANSUNION: http://www.transunion.com/personal-credit/credit-disputes/credit-disputes.page

3. If you think it is valid call them up and question them thoroughly as if you don't know how it got there, they could have sent it to the wrong address and I was never aware and stuff like that, they will ask you to pay and it will be registered paid off.... NO that is not what you want, ask them politely/aggressively depends on each individual to have that removed not paid off! Paid off is useless to me, let them know I am on top of my credit and this is unacceptable. Eventually trust me they will remove it, reason is they don't have all the info that what happened with your creditor and who in the H*** would go deep.

4. Do not apply anywhere!! V.imp 

5. After 3-4 months apply for Bank of America card the one that has an annual fee of $39.00 don't worry pay it! 

6. Get an Auto loan, go to Toyota / Honda or any non luxury brands, Toyota comes through no matter what I've seen! and they help you out, I swear I was approved for a loan it was a high APR because of my wife's credit after 3 days I get a call letting us know we got a better deal just come sign papers with a way lower APR. Anyways if this is your first or getting one in a bad credit, no matter what APR they give you even if it is 15%+ APR take it... It will help you build credit, after 8-12 months when you credit becomes awesome, first thank me and then refinance the car. 

7. Refinancing a car - See if you can become a member of a credit union - they give pretty good APR's try DCU, open up a checking account with them it is free, even the saving account is free literally free!! When opening there maybe a member fee of maybe $5 or $25 I don't remember you need to pay that's it, later apply for their credit card or refinance your car.! DO NOT use the online refinancing schemes on sites, they are tricky. 

8. Always always if applying for store card, try to apply right at the counter, it is a little different and you have a higher approval rate. - Get something done where carecredit is accepted, apply for carecredit, no matter what your score I have seen it gets approved for at least $500.00 (That is what my wife got approved for.) - ( I got approved for $4200).

9. If you have a family member with a store/credit card have them add you as an authorized user, the whole limit as well as the credit length term reflects! It is very helpful. (I had 0 credit when I was fixing my wife's credit - I was new in US. but very smart with the system, I build algorithms 🙂 ) 

10. If there are any negative remarks by any credit lender, write them a apologetic paper letter every week/month they will remove it hopefully.

My wife had a 3 year old Victoria Secret CC, that is all she had with tons of negative remarks almost 30+ hard inquiries, I added myself as an authorized user on the VC card and pretty much followed all the steps above. in 7 months I went from 0-700+. Her credit 493 to 640.

Stop yamming about who reports or who does not, somethings are good somethings are not, they are well thought through, if your credit is bad, it is because of you not PayPal, stop all the negativity lol. PayPal please do not report to them, I am glad you are out of this stupid credit system. (Although you sneeky fellow use it to approve people.. AHUH hehhe sneeky.)

[GoldKingdomKm]

I agree you speak the truth however do you know which bureau the agancys you mention checks for when appling

[DPCreations]

@SyedHussain

Your last paragraph sums it up nicely.

You're focus on buiding your credit score by using credit and managing your account avoid lateness.

Credit providers make money on providing credit so they want you to use it.   The more you use it the more you're offered.  Using it means also paying it down so you can use again.  That's all good history.

[Kaye_Star]

I very much appreciate Paypal Credit doesn't report to the bureaus! I'm currently paying off my balance to equal zero because I want the full $250 credit to use again. I've read it's best to use less than 20% of your total credit. At one point, my remaining usable credit was around $80. Definitely not something I'd want reported if it'd negatively affect my score. I use Paypal Credit for my Lyft rides because I cannot afford a car right now. Sorry, I don't feel like being penalized because I didn't want to walk to the train station at 10:30pm to get home from work. There are plenty of credit cards that'll report your "good behavior" to the bureaus. It's not like Paypal Credit is the only choice for any kind of credit. Paypal Credit is good for those of us who want to not have to worry about every purchase adding up and killing our credit score.

[NikGB]

I have to agree with those who find it a benefit that paypal doesn't report to the credit bureau's. I've used paypal in the past for large purchases and divided the payments up by 5 months and worked to pay it off with no interest. A few times I missed the mark and got hit with the interest but that's my fault not Paypals. I like the fact that I always have a 6 month grace period to pay. I also like that it doesn't add to my debt to income ratio on my credit. Most credit cards only give you a no interest grace period when you first apply. Thats what sets Paypal apart and makes them an asset to those of us who shop online. I can see how it would benefit those trying to build credit but I think Paypal intends its purchases to be short, not long term, which is why it makes more sense.

[Helix2]

I feel your pan, but time to shift gears, pay this account off but keep it open. Then, if your in the credit rebuild phase focus on getting credit cards that basically suck, but they serve there intended purpose of rebuilding credit. After sorting through a lot of bs online, I was able to get results. In less than 9 months my score went to from a 535 to a 675. 

Use secured and unsecured credit cards like a debit card where you pay it off in full each month on time. Have at least 3 credit lines open active that report to all 3 bureaus 

1) I opened a CAP1 unsecured card started with a$300 limit, now on my third automatic increase and 8 months later they raised my limit $2500 

2) open an open sky secured credit $ 200 deposit 

3) I opened a self lender loan Acct, it's basically a bank loan to yourself, but they again, report to all 3 bureaus

Finally, many credit sources will notify the bureaus when your late or default, but don't do otherwise.  Unfortunately, to get the better credit deals later, ya have to go with the sources who have no value other than THIER reporting each month. 

[gregdean]

Paypal (Synchrony Bank) will start reporting activity to credit bureaus in 2019.

[gregdean]

I asked Paypal if they report to credit bureaus and got the following reply.

"A communication was sent explaining the updated terms on your account, including that your account may be reported to the Consumer Credit Bureaus.  Effective no sooner than September 2019, Synchrony will begin reporting most PayPal Credit accounts to the four major credit bureaus as most credit companies do."

When you do start reporting, will you report my entire credit history with you, or just current standing?

"When Synchrony begins reporting accounts to the credit bureaus only payment history as of the date Synchrony began servicing the accounts in June 2019 will be provided.  Payment history prior to the date Synchrony began servicing the accounts will not be provided."