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Paypal Credit - Warning

Be very careful using PayPal Credit, it is very , very easy to hammer your Credit Scores without doing anything wrong, (being late or missing a payment). I thought that i would give it a try on a 10k purchase, and they approved the credit. Realize that Credit Score generating Companies, not only look at total credit uses from all sources, but how much you are using from a single credit line.  In my case I have a 1/2 Doz credit cards , all at "0"  but PayPal Credit saw a need to report to  Experian, Equifax and TransUnion that i was utilizing 5k of the original 10k, and my credit score took a 20 point hit. Even thought i was using less than 4% of my total credit from all revolving accounts.

Don't bother calling them to complain, it was like taking to a machine. As soon as i saw this impact I paid off the account and called them to notify credit agencies.  I was told that this is done Monthly and there is no mechanism to push a change sooner. 

So I told them to close the line of credit and now I have a ding on my Credit report for an account i paid off and closed weeks ago and it will likely remain on my history into December.

Just be warned..

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