Does PayPal Credit Run a Hard Inquiry?

W

wilson

Member
I’m planning to make a fairly large purchase soon, but before I move forward, I want to be completely certain about whether or not a hard credit check will be involved. I’ve read so many conflicting things online, some sources say it’s always a hard inquiry while others claim it may only be a soft pull depending on the situation. |

It’s really confusing, and I’d like to avoid an unnecessary hit to my credit score if possible. Since this is a big purchase, I’m being extra cautious about protecting my credit, so I’m hoping to get some clear answers from people who have firsthand experience
 
I applied for PayPal Credit last year and it definitely hit me with a hard inquiry. My Experian score dropped about 6 points the same day. I was prepared for it, but if you’re on the edge of a major loan application, I’d wait until after. It’s basically a revolving credit account, so it makes sense they’d do a hard pull.
 
From my experience, it depends on whether you’re applying fresh or just accepting a promo through an existing account. If it’s the first time you’re getting PayPal Credit, they’ll almost always hard pull. If you’re just getting approved for a special financing offer on an existing line, it might not. YMMV.
 
I hate to break it to you, but it’s usually a hard inquiry. I applied in 2022 and got dinged by TransUnion. It wasn’t a big drop, maybe 4 points, but still annoying when I was trying to keep my report squeaky clean. If you’re worried, maybe try a different financing option.
 
FWIW, PayPal Credit is run through Synchrony Bank, and they are notorious for doing hard pulls. Doesn’t matter if you already have an account with them through another store card. They like to check your file fresh each time.
 
I just got approved for PayPal Credit last month. Yep, hard inquiry. My Equifax got the hit. Score bounced back after a couple months, but if you’re on the verge of a mortgage app or something, I’d wait.
 
I’ve seen cases on forums where people got approved without a hard pull, but every time I dig deeper, they already had an existing Synchrony line and it was just an increase. New accounts? Almost always hard inquiry.
 
Honestly, if it’s a big purchase, I’d look into a 0% APR credit card instead. At least those sometimes do soft pre-approvals before you commit. With PayPal Credit, you’re rolling the dice on the hard pull.
 
They got me in 2021 when I financed a laptop. Applied directly through checkout and got the approved screen instantly. Checked my credit report later.......boom, Experian inquiry.
 
If you’ve read conflicting info, it’s because policies have shifted over the years. Early on, some folks only got soft pulls, but since about 2020, it’s been almost exclusively hard inquiries for new credit lines.
 
Mine was a soft pull back in 2017, but I think I was already in their system. Not sure if they changed the rules since then, but judging by these comments… they have.
 
I’d also point out that the inquiry is the least of your worries if you’re not careful. PayPal Credit’s deferred interest promos can bite hard if you don’t pay in full by the deadline.
 
Just to add: The hard inquiry hit me on Experian, but didn’t touch Equifax or TransUnion. So depending on who you’re keeping clean, it might not matter as much.
 
Yes, they do a hard pull when you first apply for PayPal Credit. I applied last year, and my Experian report clearly showed the inquiry. It only dropped my score by like 4 points though, so unless you’re on the edge of a big credit milestone, it might not be a huge deal.
 
It’s crazy that this thread exists every few months and we still don’t have a 100% answer. But yeah, safe to assume hard pull unless your account literally says soft pull in the offer.
 
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