Will closing paypal credit affect credit score

Yes closing your PayPal Credit account can affect your credit score especially if it’s an older account or carries a high credit limit. It lowers your overall credit utilization and shortens your average credit history. But if it’s relatively new and you have other cards it might not hurt much.
 
Honestly i closed mine last year and didn’t notice a major dip. Maybe like 5 to 10 points? Credit scores are weird though. Sometimes you sneeze and it drops for no reason.
 
Why not just sock drawer it? Leave it open don’t use it. Helps with your credit age and utilization. Only downside is if it has an annual fee, but PayPal Credit doesn’t.
 
I work in lending and we always recommend keeping older tradelines open if they’re not costing you anything. It’s all about credit mix and age. Canceling a card can backfire if you're planning a big purchase soon like a car or house.
 
People overthink this stuff. If you have solid credit and low utilization overall closing a single card like PayPal probably won’t tank your score. It's not the end of the world.
 
It's more of a marathon than a sprint. A small dip now might not matter unless you’re about to apply for a mortgage or something. If not meh, let it close.
 
I’m paranoid and keep all my cards open just in case. My credit is my baby. Like i check it more than my bank account which is probably not healthy lol.
 
The main thing is utilization. Say you have $5k in total credit and PayPal is $1k of that. Close it and now you’ve got 20% less credit available. Boom higher utilization ratio.
 
Also if you’re not using it and they close it for inactivity... same effect. Might as well take control of the narrative and shut it down yourself.
 
some people report their PayPal Credit account as a line of credit, not a credit card. Depends on how the bureau reports it. That can impact how much it affects your mix.
 
Yes! Mine showed up as a revolving credit line on Experian but didn’t even show on TransUnion. So inconsistent. Credit is a weird black box sometimes.
 
Honestly i just hate the idea of companies closing accounts on me. It feels like rejection.... So i proactively close ones I don’t use. I’ll take the score hit with pride.
 
If it’s one of your oldest accounts i’d leave it open. Age of credit history plays a big role in FICO. Even if you don’t use it.. it can help keep that age average up.
 
I’ve closed multiple accounts in the past with zero impact, but then I closed an old card and BAM, 30 points gone. I say leave it unless you have a good reason.
 
Do you plan on getting a loan or credit increase soon? If not who cares if your score drops a bit? It’ll recover. Better peace of mind than managing an unused account.
 
It depends on your credit profile. If you have 10+ cards.. one less won’t matter. But if this is one of only two or three it could make a noticeable dent.
 
FICO 8 and VantageScore can react differently to closures. VantageScore might ding you harder in the short term but FICO is more forgiving over time. Depends who’s checking.
 
It's not just about the score either. Closing cards can affect your overall credit profile. Lenders look at open tradelines, credit mix, and usage history too.
 
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