I have used PayPal credit several times without accruing interest or indeed any problems whatsoever. As I recall I was always advised the 4 month 0% free credit grace period was nearing completion so I then paid in full and no interest was accrued. Job done.
Recently however, on 05/05/2021 I took out 4 months free credit on a purchase for £213. A month later on 05/06/2021 CreditKarma flagged I had missed a minimum payment. On contacting them they advised they could not do anything as they just reported what the TransUnion credit agency flag up for them. I immediately paid off in full the £213 on PayPal and it is now marked in my PayPal account since 05/06/2021 as a closed credit transaction with £0 owed. It is still marked however by TransUnion on 19/06/2021 and reported by CreditKarma as an open credit account still owing £213 - 14 days later. So presumably I will be marked up on 05/07/2021 as also missing a payment on a closed account if they are consistently incompetent!
I contacted TransUnion on 05/06/2021 to ask for clarification of their marking up a missed payment which affected my credit score. As of 19/06/2021 no reply. I contacted them again today 19/06/2021 to ask why my credit account is incorrectly flagged as owing £213 some 14 days after it was £0.
As far as I know there is no minimum repayment involved per month for the free credit option and I have not in the past needed to make any separate arrangements to pay my Paypal account on time as it is done by direct debit with bank or in the case of credit an online settlement payment as I have done in the past.
Add to this the seeming inability to email Paypal to get their comment - I am offered messaging which simply can't cope with any query related to this and the automated Wizard "says" 'I am still learning!' and intimates to go elsewhere.
Any attempt at raisng a query via a dispute is vetoed as apparently your can't query credit matters via resolution. At least that was the message that came up when I tried. So the alternatives are the community or a long tortuous phone call to explain some other organisations basic error which Paypal will no doubt point out is beyond their control. They do however provide open access to my financial records for TransUnion so presumably because of that have some responsibility for accuracy of data which could be a significant problem for a PayPal client as in my case lowering a previously impeccable 670+ rating. Strangely, immediately after paying off the £213 my credit score went up by 14 points for which I got a round of applause from CreditKarma but my "debt" apparently still remains at £213!
I await next months TransUnion report with bated breath! What can it be? Place your bets.
