Does PayPal Pay in 3 Affect Your Credit Score?

P

Parker1985

Member
I’ve used it a couple of times for small purchases and I’m wondering if it shows up on credit reports or affects your score in any way (positively or negatively). I know it’s technically a form of buy now, pay later, but I’m not sure how it compares to things like Klarna or Affirm when it comes to credit reporting.

Anyone have experience with this or know how PayPal handles it?
 
Used it 4 times in the last year. Never saw anything on my reports. Also never got dinged for a hard pull either.
 
As far as I know Pay in 3 doesn’t impact your score unless you default badly. But I wouldn't use it like a credit builder
 
Interestingly, in Australia BNPL providers like Afterpay and Zip do appear on reports now. Wouldn’t be surprised if PayPal started soon
 
if it doesn’t report, then how do they decide who gets approved? Is there still a soft check?
 
I’ve used PayPal Pay in 3 for like 6 purchases this year. Never saw a hard inquiry or any mention on my Experian or Credit Karma reports. From what I know, PayPal doesn’t report these to major bureaus unless you miss a payment. So if you're on time, it’s invisible to your credit.
 
I’ve used Pay in 3 maybe four or five times this year for little things like under $100 and it never showed up on my credit report. I use Credit Karma and Experian, and nada. I think PayPal only runs a soft check when you first use it so it won’t hurt your score. But it also doesn’t help it which sucks if you're trying to build credit.
 
PayPal confirmed somewhere on their site that they don’t report Pay in 3 to credit bureaus. That might change in the future, but as of now, it’s invisible to your credit file. BNPL services like Klarna and Affirm are a mixed bag....some report, some don’t. Affirm definitely can report to Experian, but Klarna’s weird about it.
 
Yeah, Pay in 3 is like the stealth mode of debt. You’ve still borrowed money, but it’s invisible to your credit score. It’s like a ninja loan quiet, deadly if you screw it up. If you miss a payment though? Not sure if they report THAT part. Anyone ever been late with it?
 
PayPal doesn’t report Pay in 3 to the major bureaus (Experian, Equifax, TransUnion), but they might use soft pulls for approval. So yeah no FICO drop but also no score bump either. But be careful if you default, they could send it to collections and THEN it’s game over.
 
LOL if you're relying on Pay in 3 to build credit, you’re doing finances on easy mode. It's not about building credit. It’s just a way to split payments without interest as long as you're on time. Great if you’re broke for a week but not a long-term credit strategy.
 
I used Pay in 3 for a laptop a while back. Didn’t notice any hit to my score, but also didn’t get any benefit either. That’s kind of the downside...it’s not reported unless you go delinquent. So be careful. It’s like a silent test of your responsibility.
 
BNPL is still the Wild West. Some companies are starting to report to credit bureaus voluntarily, especially with regulators breathing down their necks. But PayPal’s keeping it lowkey for now. I’d still be careful.....people rack up Pay in 3 debts without realizing.
 
I treat BNPL like using a debit card with a delay. It helps me budget large purchases over a few weeks. I know it’s not impacting my score, but it does help my mental math. Credit score impact? No. Financial peace of mind? Kinda yes.
 
when I applied for a mortgage last year, the lender asked about BNPL accounts even though they weren’t on my credit report. Apparently, some underwriters are getting smart to the fact that these services are like hidden liabilities. So... it might matter more than you think.
 
No credit impact unless you mess up. Then it's definitely reported. I was late on one Pay in 3 payment because I changed banks and forgot to update my info. PayPal froze my account and sent it to a collections agency in 45 days. That did go on my credit report.
 
Yep soft credit check only when you apply. Doesn't hurt your score and doesn’t show up as an account. But treat it like it does because if you miss a payment and it hits collections, it WILL affect your score. People think it's risk-free........it’s not.
 
I’m always torn about BNPL stuff. On one hand, it helps break down payments. On the other hand, it normalizes debt for small purchases which is kinda scary. Like do i really need 3 payments for a $40 hoodie?
 
Nope no credit building or scoring benefit. You’d be better off getting a secured card if you want to actually improve your credit. Pay in 3 is a convenience tool not a financial growth tool.
 
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