is PayPal a loan

mariainuk
Contributor
Contributor

Hy ,I am currently trying to organise a personal loan from the AA to purchase a car .

 

While filling out the form it asked me two questions

 

1.What are your total current monthly repayments on all existing loans?

2.What is the current balance of all your outstanding credit cards?

 

The thing is I don't have credit card or a loan.

What I do have is paypal credit where I have purchased 2 items and I am just making interest free payments monthly

I phoned the company and they literally could not answer the following question

 

does a basic paypal interaction using interest free credit payments come under a loan or credit.?

 

The customer service person stated that I should open up an experian account and if they did a check on me, paypal would come up as a defined category.

From what I can gather though, paypal credit wouldn't show up on a credit search unless you defaulted on your payments [which I never have ]

Can anyone enlighten me ?

🤔

 

Login to Me Too
2 REPLIES 2

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@mariainuk 

 

PayPal Credit is credit.  The answer is in it’s name “PayPal Credit”.

 

PayPal Credit is like a credit card, without the plastic. It’s a credit limit that’s attached to your PayPal account which you can use for your online purchases.

 

It is not what I’d consider a “loan” in the traditional sense.

 

Therefore, you’d include your PayPal Credit account towards question 2 and not question 1.

 

When you open a PayPal Credit account, PayPal does a hard inquiry on your credit report (CR) therefore that hard inquiry would reflect on your CR.


Kudos & Solved are greatly appreciated. 🙂
Login to Me Too

mariainuk
Contributor
Contributor

Hy,

thank you so much for responding. In the end I just did a credit check on myself. It had actually registered on the credit check site as credit card and I find out that something else that i am using is classified as a loan.

It really strange that Paypal as a company could not advise me though when I contacted them directly. Also the company that organises their credit [transunion] didn't know either. In fact the person that I spoke to representing paypal's credit company didn't even understand the question put me on hold to try and find out then cut me off !

Out of all of the people I asked you have been the most helpful

Thanks  🙂

Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.