Does PayPal Credit Impact Your Credit Rating?

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nicole baker

Member
I’ve been thinking about using PayPal Credit for a couple of upcoming purchases, but I wanted to double-check how does it affect your credit rating?

I know it’s issued by Synchrony Bank, so it’s basically like a credit card, right? But I’ve heard mixed things. Some people say it helps your score, others say it tanks it if you're not careful.

From what I’ve found so far:
  • They do a hard credit check when you first apply, so your score might dip a few points
  • It shows up on your credit report like a regular revolving account
  • Payment history and credit utilization both matter here miss a payment or use up most of your limit, and it could hurt your rating
  • But on the flip side, on-time payments and low usage can help boost your score over time
 
Yup it's reported to all 3 credit bureaus just like a credit card. Treat it like one and you're good. Let it go to collections though and you’ll regret it.
 
I’ve actually seen a tiny boost since i started using it responsibly. Keep utilization low and pay on time.....same as any other revolving credit.
 
Helpful if you’re building credit. I used it to buy textbooks and paid them off in chunks. Helped me establish a decent score by graduation.
 
be careful Synchrony Bank is known for closing accounts randomly. That’ll ding your score too due to reduced available credit.
 
Yes PayPal Credit is a revolving line of credit and Synchrony does report it to the credit bureaus. So it definitely impacts your credit score. Think of it like a store card.
 
Hard inquiry when you apply ✅
Reports as a revolving account ✅
Affects credit utilization ✅
so yeah… treat it like a credit card....same rules apply.
 
Keep your utilization below 30%, ideally under 10%. PayPal Credit is reported monthly, so maxing it out even temporarily can ding your score.
 
I work in credit underwriting. PayPal Credit can help build credit if managed well. Just beware if your utilization spikes it’s factored into your total revolving credit usage across all accounts.
 
PayPal Credit does not report to all three bureaus equally. It reports to TransUnion and Equifax but some people say it doesn’t always show up on Experian.
 
It’s like a credit card but sneakier. One day you're buying a $300 espresso machine the next day you’re googling how to remove Synchrony from my credit report.
 
Honestly i don’t trust any financial product tied to PayPal. Their customer support is trash and Synchrony’s isn’t much better.
 
Not sure why you'd use PayPal Credit unless you’re getting a good promo rate. Otherwise just use a cashback credit card and get rewards.
 
totally valid to be cautious. i got burned by overusing PayPal Credit back in 2020. Just be careful with your spending and always pay on time.
 
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