How does PayPal Credit affect your credit score?

J

Johnson JAY

Member
Does anyone know exactly how PayPal Credit impacts your credit score? I’ve had it for about a year now, and I’m trying to clean up my finances and be more intentional with my credit usage
When I first signed up I don't remember seeing anything about it affecting my credit. But recently I pulled my credit report and saw that it’s showing up as a revolving account. That kind of threw me off because I always thought it was more like a “buy now, pay later” option

Also, does anyone know:
  • If it reports to all 3 credit bureaus?
  • If high utilization on it hurts your score like a regular credit card would?
  • And if closing it would ding your score from losing available credit?
 
Yeah dude PayPal Credit is basically a sneaky credit card in disguise. It does report to the bureausat least TransUnion and Experian for sure. Not sure about Equifax though.
 
If it doesn’t show up, it might be a glitch or they’re not reporting it for you. But i’ve seen it on all three bureaus on my end.
 
Yes PayPal Credit is 100% reported as a revolving credit line. It’s issued by Synchrony Bank and shows up just like a credit card. High utilization definitely dings your score. Been there done that, watched my score drop 40 pts overnight
 
I had a $2,000 limit on PayPal Credit, maxed it out thinking it wasn’t a real credit line. big mistake. Dropped my score like 50 points. Took months to crawl back.=
 
yeah PayPal Credit definitely shows up as a revolving account on your credit report. It surprised me too. I thought it was a hidden line of credit or something 🙃
 
Yes PayPal Credit is reported as a revolving credit account (like a credit card), and it absolutely impacts your credit score. It’s underwritten by Synchrony Bank and they report to all three bureaus. Utilization definitely matters...try to keep it under 30%, just like any credit card.
 
Totally feel you. I signed up during a checkout thinking it was a split in 4 kinda thing and was like ??? when it showed up on my credit report.
 
I mean i’ve had it for 2 years and it didn’t really move the needle on my score until I maxed it out. Then bam -40 points.
 
U are doing the right thing by getting intentional. Credit scores are all about usage and history. Keeping low balances and paying on time will help a ton even with PayPal Credit.
 
When i closed mine my score dipped about 10 points. But i’d already paid it down and didn’t need it. Rebounded in a couple months
 
It helped me build credit when I had almost none, but the APR is brutal if you don’t pay it off before the 6-month promo ends. Ask me how I know 😩
 
If you close it, it could ding your score because you’ll lose that available credit, which increases your overall utilization ratio. Age of credit might also take a hit if it was one of your older accounts.
 
Exactly! People forget that utilization is across all your credit not just one card. Closing it could make your other cards look more maxed.
 
I think these kinds of gray area credit products prey on folks who aren’t financially literate. It’s wild how easy it is to misunderstand what u are signing up for.
 
PayPal Credit affects FICO scores the same way a revolving credit line does. Your credit utilization ratio, payment history, account age, and any late payments all factor in. It’s not a BNPL service like Affirm or Klarna...it’s underwritten like a credit card.
 
Yeah i just got one last month and it immediately showed up on my Experian. Limit was only $600 too which makes the utilization part even trickier.
 
If u r optimizing for credit score, don’t close it...just leave it at $0 and let it age. It adds to your total credit and helps with credit mix.
 
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